The stock market has taken a few sharp dives recently.
My major stock purchases has been in my Vanguard S&P 500 fund VFIAX which I have had for a long time.
VFIAX peaked at 271 a share.
I have divided my purchases in tranches.
257 5% drop from the peak - $25,000
252 7% drop from the peak - $30,000
245 9.5% drop from the peak - $45,000
240 11.4% drop from peak - $10,000
235 13.3% drop from peak - $20,000
228 15.9% drop from peak - $10,000
223 17.7% drop from peak - $20,000
I have poured a total of $160,000 into VFIAX.
This is in addition to my dollar cost averaging in my IRA account. I do not alter my strategy in my IRA, but in my post tax account, I have decided to employ this tranche investment strategy.
Of course I have a pang of regret for investing so much at only 9.5% drop. I think I will wait until around 20% drop to invest more.
It's easy to claim how you will invest when the market drops. But when it truly takes a dive, it is rather nerve wrecking to wonder if you will ever recover your investment.
