I'm sitting on a lot of cash that I wanted to invest in case of an event like this into SPY.
I'm hearing two strategies here that make a lot of sense: DCA during the dip and 'don't fight the FED'.
But it seems these two contradict eachother.
In case of DCA I buy every week/biweekly/month all the way down and up. The advantage being you take emotion out of it and you can't miss the bottom. Disadvantage: you leave possible gains on the table with the shares you bought more expensive on the way down/up.
In case of don't fight the FED you wait till the FED's start cutting interest rates and you lump sump everything at once. Advantage: Possibly more gains because you bought everything closer to the bottom. Disadvantage: you might miss the bottom plus it takes a lot of balls to lump sump a significant part of you life savings (while keeping an emergency fund) all at once.
What would you guys do if you were me? Start DCA'ing now or wait till we here some positive news from the FED?
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