I have a sizeable lump sum, which I'm choosing to DCA into various market indexes over the next two (or even three) years.
Some will think I'm crazy cautious. And I know lump sum wins out most of the time.
But, I see strong headwinds ahead.
A housing bubble. Near double digit inflation. Fears of war. Guaranteed interest rate increases following the negative effects of QE. And the fact that we have experienced 10+ years of continuous growth.
It feels as though the party is winding down, or at least going to take a significant break.
I'm not even entirely sure if a 2-3 year horizon will be enough for a depression or stagnation to “reset” the machine.
I'm not a bear type at all normally, but I'm not feeling positive. I'm wondering if we are in for a repeat of the Lost Decade.
I'm not trying to stoke an argument. I'd really appreciate your genuine thoughts on the future. And specifically whether you think I am too cautious with my longer term DCA strategy or not.
Thank you!
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