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Updated over 5 years ago on . Most recent reply

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Max T.
  • Investor
  • Philadelphia, PA
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Is now a good time to buy the dip?

Max T.
  • Investor
  • Philadelphia, PA
Posted

NPR says the major stock indexes are down about 3% today.

I generally pump some extra money into my IRA account when stuff like this happens. Usually it's when the budget doesn't get passed.

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Brandon Roof
  • Rental Property Investor
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Brandon Roof
  • Rental Property Investor
Replied

Today is all about trade with China and if/until an agreement comes to fruition we'll have days like these from time to time.  This has been going on for months.  An off the cuff tweet ignites a selloff and things are choppy for awhile until another leader tweets about progress being made or something else takes over the headlines.  As a long-term investor I don't approach today any differently than less volatile days.

Will the market continue to pullback in the near term?  Some would say yes given the current uncertainty regarding trade, but again, this has been going on all year and the market is up like 13%, so clearly the initial headline shock has worn off on more than one occasion.  Could this time be different?  Maybe, but will it continue to be the driving force behind the price direction of a U.S. based service provider that has no exposure to the effects of a trade war with China?  I would certainly hope not, but we have certainly seen overreactions to events in the past where seemingly unaffected companies become innocent by-standards.

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