[El]

I understand buy low and sell high but it seems like everything is high!! If you have some cash reserves you want to deploy what are you supposed to buy that’s low?

Gold is high, large caps high, small caps high, bonds going up in value, etc.

Where is there currently value among any asset class?

[Patrick]

In 10 years, today’s prices will look low. Think long term

[Brad]

“buy low and sell high” sounds like a short-term trading mentality. You’re investing for 30-50 years most likely. You can’t time that.

[Kevin]

Dollar cost average (DCA): you keep buying and the market will drop which will make your purchases worth more when it rises again.

Over time your purchases now (high) will even out with your low purchases and ideally the market will be higher than your average purchase price when you sell.

[Brad]

We don’t do that here. We buy and hold. Always be buying. So price doesn’t matter early in the race.

[Jeff]

How do you know? Today’s prices might be the lowest from here on out. Or they might be the highest for the next two years! We don’t know!

[Trevis]

Determine what you want your asset allocation to look like. Add money to get that balance. Use new money to keep it balanced.

Every now and then sell what up and buy what’s down if it’s out of whack.

Current price shouldn’t matter much if you’re in this for the long game. That’s just market timing.

[Bill]

About 2 out of every 4 years, the market is at all time highs. So don’t try to “buy low” or you’ll rarely be buying.

[Priya]

Assuming you will hold for the long term, just buy it even if it is 1-2 shares. And then when you saved up a lil more, buy again, and repeat.

That is how I built up my individual stock portfolio.

It is still only about 3% of my total cuz it is fun.

I have sold a few long-term “losers” when I feel like they are just not gonna turn it around (i.e. ARK funds) or when I no longer agree with the vision of the company leader (i.e. Tesla).

Were these the right moves? Have no idea and I don’t look back, but portfolio is up about 28% so I am ok with that!

[Steve]

High compare to what? If you’re comparing to 10 years ago – yes it’s high, but that’s the point. You need to compare to 10 years from now.

If it looks low – buy, if it looks high – sell.

[Scott]

My buddy said the same thing….in 2018!
The DOW was 24,000
It’s 41,000 now.

[Mark]

Cash reserves are short term savings buckets and emergency fund, all other cash gets invested according to my investment plan.

This way their is no “guessing” game like ur attempting to do.

[Johnathan]

Your portfolios allocation should be pre-determined so why would you deviate from your current asset allocation? What’s the allocation of the rest of your portfolio currently?

[Mitch]

The only way buy low / sell high mantra aligns w/the FI world (other than buying now and selling 10-30 years from now) that I can land on is:

1. You are rebalancing your portfolio 1-2x a year and you are selling your winners (high) and buying more of your losers (low).

Then leaving it alone until your next established rebalance date.

2. You are in the draw down phase of your life and again selling your winners to cash out and fund your life, and letting the rest ride and/or rebalancing as in example 1 above.

Each of these answers would indicate a minimum of a 2 fund portfolio but certainly could be more funds.

[Ron]

The s&p500 has hit 54 or so all-time-highs just this year. That is crazy.

The mkt should absolutely seem like it is crazy high if it has hit more all-time-highs in the year than we have weeks in an entire year.

You have two choices: 1) put your money in your brokerage acct money mkt fund which is likely paying about 5% until the mkt tanks, or 2) DCA into the mkt over the next year. Or a little of both.

[Adam]

“Buy and Hold” is the better phrase to live by. Stop worrying so much about low and high.

[Author]

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