# cash is king, but does opportunity knock?



## sinfullivingsolution (Jun 1, 2015)

hi folks,

Im at a crossroads. in light if the market taking a dump Im in a position to take advantage of the drop or continue the path I have been doing for the past year. Ive been roughly dropping 10k per month dollar cost averaging in various stocks. Ive made my purchase for this month(TD and ENB) already but Ive been thinking about not sticking to the plan considering everything is on sale.

follow the plan or take advantage of the drop?

I was considering buying ENB, BNS, BCE all which have a health dividend. not sure how much I am willing to drop as it would cut short my 2 year plan of dollar cost averaging.

I look forward to the responses....


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## cainvest (May 1, 2013)

Your guess is as good as anyones right now. With (at least) two factors driving the market down now (virus and oil) the loses and duration could go on for days, weeks, months or even years. Also governments will likely try things to stablize both situations but how effective they'll be is yet another guess.

You could always follow your plan until a recovery looks probable then deploy more cash or just stick with your plan as is.


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## Jimmy (May 19, 2017)

I don't think you could make a wrong move either way. These are bargains now at 20% off. I am doing the same w a smaller amt DCA. I was adding a little more on the dips in Dec 18 for ex, putting in 2 months worth in 1 month and none the following.

It looks like there is some buying in the futures market now vs more selling so not a bad time. This oil issue may delay the larger recovery like back in 2016 so maybe waiting longer like a couple of weeks wouldn't hurt either


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## Rusty O'Toole (Feb 1, 2012)

I suggest sticking with your plan. For one thing prices may be even cheaper next month. For another it is important not to get in the habit of deviating or second guessing your plan especially with Dollar Cost Averaging. In the long run (like 10 years from now) it won't matter if you bought this week or next week, what will matter is that you stuck to the plan.


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## AlwaysLearning (Dec 8, 2017)

The advise in sticking with your plan is good... That said personally I am trying to ratchet up my set percentages where possible basically by cutting expenses. 

This won't be that difficult right now as I will naturally reduce spending slightly.. I have less interest in going out to eat. Not looking to travel in the near term. My work to date is not impacted so although my expenses should go lower during this coronavirus scare my income actually went up slightly (annual increase). 

Personally I am going to try to scrape together more money to buy all the way down and maybe all the way back up according to the plans I already had in place... 
Likely as things blow over I will want to increase spending again and will therefore decrease my percentage for investing...

AlwaysLearning


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## sinfullivingsolution (Jun 1, 2015)

thanks everyone.

Im going to stick to my original plan. although I was a bit naughty today and picked up enb at 42, but I swear Im done.

while sometimes people become emotional when it comes to investing(fear of loss and sell off at a loss) I have the fear of missing out on the great deals. when I can get a dividend at a better rate of return at 6,7,8%, how can you not want to jump at that? 

slow and steady wins the race(dollar cost averaging over time). also as some have suggested the market may have not bottom out yet, so there is that issue to contend with. worse case scenario I buy at a less attractive price then now, but better then prior to the crash.

thanks everyone for your support and comments.


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## jargey3000 (Jan 25, 2011)

why does everyone seem to like ENB so much right now..


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## AltaRed (Jun 8, 2009)

When ENB's stock price is on a move like the last year or two, investors like it. When it did poorly for a few years before that, no one talked about it.

It is recency bias and flawed human psychology. Best ignored.


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## londoncalling (Sep 17, 2011)

sinfullivingsolution said:


> while sometimes people become emotional when it comes to investing(fear of loss and sell off at a loss) I have the fear of missing out on the great deals.


I couldn't agree more. That is why market timing is so difficult. Glad I cancelled my order Sunday night. Will do my best not to place any orders this evening as I am sure we will see further declines tomorrow. Even if I were to buy now it would be a t a rate lower than I had targeted previously. Emotion is driving the bus now and it makes it difficult for those deciding if they missed their original intended stop and if now is the time to get on or off at all. 

Cheers


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## agent99 (Sep 11, 2013)

jargey3000 said:


> why does everyone seem to like ENB so much right now..


They do? Reaching for yield? Or blindly following some preconceived plan? Beats me!

For me, they are beyond the end of my bargepole. 😉

Based on futures looks like another bad day coming up? (Second hand info - even my wife checks futures these days 🙂 )


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