Yeah, I was thinking about Morgan Housel's article about
when he'll put in his cash - 10% after a 10% correction.
That's about 1920 for the S&P. We usually have about one
of those a year.
But I usually find good companies with a bigger discount
about all the time. Already have more of these companies
than we need. I need to expand the ones I watch to some
I don't have.
Thinking about index funds, the problem is too many people
have them now and it effects the prices by not raising the
price of the ones that should be higher and buying the ones
that aren't worth the price just because they're in the index.
That's besides the normal fault of mutual funds or index
funds such as your fellow investors. If they bail at the bottom
the fund has to sell low just to redeem the shares and when
everyone's buying and run the price up high everyone wants
in at the same time and they have to buy too high.
With prices of some good companies doing so badly I really
see no reason for a correction but that doesn't mean we
won't have one. Fine, I have some dry powder left.