Why I’m starting to DCA

First, I think the market has a good bit of downside. I made a post a few weeks about about where some valuation metrics suggest we bottom based on historical levels which puts the SPY bottoming around $270. I still think that's entirely plausible.

By DCF, some of the price targets put things at about fair value (I do think their estimates are too rosy)

That being said, I've decided to being DCA'ing. I want to callout a few things on this:

1. I'm DCA'ing into indices only–RSP (equal weighted S&P 500) and QQQ
2. I'm only DCA'ing in with about half of what I could. I'm still building up a cash position each month.
3. I'm 90% in cash right now and have been for quite some time to avoid most of the losses this year

I think this is a good strategy that begin taking advantage of the dip while giving me the opportunity to purchase large amounts if we should move further down–which I think will happen.