DCA back into the market

i have ~$120k on the sideline. thinking about slowly re-deploying these funds over three months, as i know it it will be impossible to time the bottom of this. 10k every two weeks into a nasdaq eft and 5k every two weeks into an ASX etf. and also 2k every other week into ETH/BTC 50/50. will take 12 weeks to deploy all and then hold for a year or two to ride the wave back up. thoughts?

 

The only thing you can know with certainty is that markets will be uncertain. What's your long term goal and do you need that capital in the next few years? Trying to time the markets with a short term outlook may have interesting results in either direction.

 

ASX I understand. Nasdaq I kind of understand, with currency risk and all. It has certainly taken a hammering so I see the attraction, just from that POV.

But BTC/ETH? They are not investments as they provide no income. That's just putting your money on black - pure speculation on the price of tulips. Not the type of thing that makes any sense at all for DCA - even if you think they're a legitimate form of currency (I don't) then why not just buy USD / EUR / whatever instead? None of them have any investment value... money of any kind is only useful because it allows you to buy things with it - it has no value of its own. It's the act of buying something real that provides income (title to house, share of a company etc) that makes something an investment.

But by all means buy and pray if you like - I am continually amazed at the number of people who continue to do so while telling themselves they are "investing".

/end rant.

 

There is convincing research that the biggest returns come from being in the market on the 10% or so of days that have the biggest bumps.

In which case you should lump sum in now.

There is also convincing research that you shouldn't try to time a bottom, but rather wait until there is a solid upswing.

My thinking is that if you assume the current dip is u-shaped it really doesn't matter when you go in.

However, like the comments above, I don't think the historical onward progress of the market as a whole applies to BTC.

Everything that was theorised about BTC was wrong. It isn't contrary to the market.

 

While i understand ‘invest only if you dont need the money for a few years’ or ‘invest as if you cant sell for years’, i dont understand ‘only put in what you can afford to lose’.

 

I was going to comment about this elsewhere, but most advice about investing in a slump is nonsense.

Usually, the consensus is to be fully invested and not sell in a downturn.

But at the same time the advice is to use your spare funds to buy in during a downturn.

Where do they think those spare funds come from?

Which is why I think articles such as the one I got from Nabtrade today are useless;

How to handle a correction

 

nabtrade is fearful of losing business. They got to give the punters a pep talk lol. Come on! No guts no glory! Now get out there and punt ! lol