This is true, however, how does one know when the market is down? It's down now. But maybe it's falling much further and you're catching the falling knife? Maybe it starts a 5-year boom tomorrow and you've missed your chance?
I guess that extends the thought expressed in other comments that no one really knows when a recession is about to hit. If they did, it would be preventable.
A good investor knows his risk and his time horizons. Obviously, don't throw thousands into the stock market just before you're about to retire, even if the market looks to be down, if you don't have a very sizable nest egg. Additionally, a good investment should be a good investment even during the hard times -- for instance, I don't think Amazon is going anywhere for a while. Otherwise you're speculating, which is a valid form of investing, but you can't ignore the risk, i.e. you have to have cash and assets that will protect you if you lose all your money or the apocalypse happens.
It's complex. I'm not saying I'm a good investor, but I am trying to learn from the past!
Consistently invest an amount that you are comfortable with. It's called dollar cost averaging. I'd personally keep dry powder for when the market is far beyond the standard deviation of historical records. 2008 and 2018 would both be years this is true. Shorting though is only for the brave or stupid.
Personally, I put a certain amount in every quarter.
I guess that extends the thought expressed in other comments that no one really knows when a recession is about to hit. If they did, it would be preventable.
A good investor knows his risk and his time horizons. Obviously, don't throw thousands into the stock market just before you're about to retire, even if the market looks to be down, if you don't have a very sizable nest egg. Additionally, a good investment should be a good investment even during the hard times -- for instance, I don't think Amazon is going anywhere for a while. Otherwise you're speculating, which is a valid form of investing, but you can't ignore the risk, i.e. you have to have cash and assets that will protect you if you lose all your money or the apocalypse happens.
It's complex. I'm not saying I'm a good investor, but I am trying to learn from the past!