Imagine this: you walk into the supermarket and spot something amazing... 2-for-1 Doritos. So, do you take advantage and buy up the cheesy goodness on special?
Well did you know the same can be true for regularly investing into your investment portfolio?
When your portfolio value dips, just like seeing Doritos on sale, a dip in your portfolio value can be a prime signal to invest more while prices are low. No one knows what will happen over short periods like a year, but we do know that investment markets tend to grow in the long term!
Why Buying Low is Smart:
- Lower Costs: You spend less on average when buying shares at lower prices.
- Smaller Risk: For regular investors it means not risking all your money at once.
- Good Habit: Keeps you in the habit of investing, no matter what the market is doing.
Simple Thought Pattern:
- Market Down: Keep buying, it should be a better deal and I'm investing for the long term!
- Market Up: My investments have grown in value, I'm heading towards my goal!
This approach helps balance the ups and downs, leading to potentially greater returns over time. So, if your portfolio value dips, remember: it may just be a better time to buy!
