Anyone else buying into the downturn?
The market news this morning is on the negative side and my earlier expected drop below 12500 for the S&P TSX Comp Index is still a possibility. The volume continues to decline as the index climbs above the low made in August. However, a drop below 12500 in the near term is not guaranteed, so I bought a little more index-e fund at this time. A buy at this time builds in a 6.5 percent advantage compared to buying after the market recovers from this temporary setback. My plan is to buy more units if the index goes lower, averaging down.
I wouldn't do the same thing with a stock issue...that would hold too much risk for my liking but history teaches us that the index always comes back.