Not.Someone can’t tell you when to buy. No one has a glass sphere and also the VIX is not.
However, one can buy shares of companies that he or she is convinced that they make more profit and continue to make more profits in the long term than at the time of purchase in the share is discounted.
Increased volatility is also not always a prelude to a stock market crash.However, the VIX (like gold, raw materials and/or real estate) can be a good hedge .After all, if the VIX, or the volatility, shoots Unhigh, the crash is usually already underway or has been. Volatility often goes up during a crash and certainly not necessarily in advance. Certainly honor Jan with the Pet that is through. Nowadays, violent price movements take place in a few seconds. Impossible to act on. Especially for the average Quora reader.
I do find Always have cash an afterthought rule: Just make sure you have cash and save in addition to your equity portfolio at all times.Although it is only 20 EUR per month. Because does who do not predict dip or crash then comes, you also know for sure that you actually have money available to make use of that unique opportunity or sale.
Timen is impossible.In addition, it is speculation. Speculating is what other than investing. However, you can act during or after a crash. You can only not timing when-ie will end. A crash is for a value investor nothing but an unbelievable fantastic sale. The shares you hold are, after all, shares of companies where you believe in the long term in terms of profit growth and return on investment. If it is good, there is nothing to change that belief in the companies concerned. They have only become overly cheap due to the crash. See it as if Dirk van de Broek suddenly offers a lot of Rolex watches for half of the retail price. (Hypothetical: Even if no one would need a Rolex watch anymore, it will be a time when they become more popular again. But whether that’s about ten or twenty years?)
One of the reasons why the rich are richer 芒 鈧劉 is because they actually have the money to be able to act whenever a valuable or unique opportunity arises.
And as Baron Rothschild said in the 18th century: 芒 鈧?虄the time to buy is when there is blood in the streets. 芒 鈧劉
Or a modern light version variant thereon:
However, the absence of 芒 鈧?虄blood in the straten芒 鈧劉 or 脙1/4berhaupt should be a dip, no reason not to invest (or not yet) in valuable profitable companies.This can also be done monthly, even with 20 EUR per month. Ideally, a value investor invests for at least twenty years. The longer the better. Because of inflation alone, you have the time at your side. Well, you have to understand that there are many different investment strategies, of which value investing and Dividendbel Eggen are just two examples. The latter has a passive income of compounding interest or compound interest on eye.
Anyway, you can’t start investing early enough for the long term.