My time horizon is 15 years+. That is, if everything goes well, I could be early-retired (if I choose to do so) in 15 years. If things don’t go so well, I’ll have to push it out accordingly.
I’ve tried market timing in the past and found that I’m not so good at it. Periodic investing seems to work for me. I think it would be dumb for me to pull back from my periodic investments now given that I was doing periodic investments when the DOW was at 14K. There’s no doubt that putting money into the market now is much better than doing it when the market was at 14K.
Could the DOW go to 10K? Absolutely. Could it go to 7K? Possible, but very unlikely in my opinion. In any event, as long as I continue the periodic investing, I’ll get some in at the tops of course — but I’ll also get some in near the bottom. The risk of course is that I get laid off and have to stop the periodic investing. That could happen, but it’s a risk I’m willing to take.
