My New 10% Rule

I read an article that stated since 1950, the market has had 35 declines of 10% or more.  In all 35 instances, the market passed the previous highs.  Sometimes within a few weeks, other times a few months, and in a couple cases a few years.  But the recovery happened 100% of the time.  I would include a link to the article, but I can no longer find it.

Of course, the issue is timing.  If it takes 5 or 10 years to recover, it may be challenging for those who have no other source of income.  But if one has time, and other sources of income, it seems to be a no brainer decision to invest something

So from now on, when the market drops 10%, I will put some funds in an index ETF, such as the Vanguard Total Market ETF or the Schwab Broad Market ETF.   Of course, I will use funds that we won't need for at least 3-5 years, such as our children's savings/college accounts..

With all the geopolitical issues, I may get the opportunity to use this new rule sooner versus later.

Disclosure:  No compensation was received for this post.   At the time of the this post, we own shares of the Vanguard Total Market ETF and the Schwab Broad Market ETF.

For more on  New Beginnings, check back Sundays for a new segment.

This is not financial or investing advice. Please consult a professional advisor.

Copyright © 2017 Achievement Catalyst, LLC

0 Response to "My New 10% Rule"

Post a Comment