Capital Deployment During Stock Market Downturn

First of all, I did not come up with this concept. I learn it from Financial Samurai. I think it is a great concept to keep you on course when the stock market suddenly goes south.

We all say we will buy low and sell high, but when the market drops like a falling knife, there will be a flood of emotion that alters your decision.

Given the recent drop in the market and a new lower plateau that we have reached, I will plan my investment based on the correction from this plateau of S&P 500 - 2786. I have already deployed some investment during last months drop.

S&P 500 drop 2% from peak (2730) - Invest $25,000
S&P 500 drop 4% from peak (2674) - Invest $25,00

SP500 4% drop (2044) – 15,000
SP500 8% drop (1959) – 20,000
SP500 12% drop (1874) – 30,000
SP500 16% drop (1789) – 20,000
SP500 20% drop (1704) – 15,000 - See more at: http://www.financialsamurai.com/develop-an-investing-game-plan-for-the-stock-market/#comments

S&P 500 drop 6% from peak (2618) - Invest $25,000

SP500 4% drop (2044) – 15,000
SP500 8% drop (1959) – 20,000
SP500 12% drop (1874) – 30,000
SP500 16% drop (1789) – 20,000
SP500 20% drop (1704) – 15,000 - See more at: http://www.financialsamurai.com/develop-an-investing-game-plan-for-the-stock-market/#comments

S&P 500 drop 8% from peak (2563) - Invest $25,000
S&P 500 drop 10% from peak (2507) - Invest $25,000

SP500 4% drop (2044) – 15,000
SP500 8% drop (1959) – 20,000
SP500 12% drop (1874) – 30,000
SP500 16% drop (1789) – 20,000
SP500 20% drop (1704) – 15,000 - See more at: http://www.financialsamurai.com/develop-an-investing-game-plan-for-the-stock-market/#comments