Nasdaq -3.64%: DCA or Invest Heavily During the Drop?

Tiger_comments
07-25

$NASDAQ(.IXIC)$ plunged 3.64% yesterday and continued to decline after today's opening.

Do you think dollar-cost averaging into index ETFs $Invesco QQQ(QQQ)$ or buying during the dip is better?

As earnings reports are released, investors are beginning to question whether the high valuations for star companies are justified, sparking concerns about the health of global tech companies.

Current data shows that the P/E ratio of $S&P 500(.SPX)$ constituents is 21.4 times, compared to the historical average of 15.9 times.

DCA or invest heavily during the pullback?

How do you view?

Leave your comments and also post to win tiger coins~

# Is it Better to DCA or Invest Heavily During the Drop?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • highhand
    ·07-25
    dca can, but small amounts. save ammo for buying heavily during dips is my recommendation. 
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  • 1PC
    ·07-25
    TOP
    $Alphabet(GOOGL)$ I prefer to wait and Buy the Dip [Happy] [Happy] instead of buying the ETF.  Overall Long Term direction of Google is still 👆👆.. Markets Corrections or Retracement will always be part of the games 😉
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  • Drdeedee
    ·07-25
    Dca
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  • RedHawk
    ·07-26
    I think both DCA and BTDips are lazy and potentially dangerous, especially right now where a market top looks like forming, I’ve seen and lived through some huge draw downs as have probably you when following, but I could be wrong I am still learning, I prefer now to buy in technical confirmation while in the Bull Zone, and switch tactic and products when in the Bear Zone
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  • Sheepysheep
    ·07-26
    DCA every month plus invest when it dips
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  • SPOT_ON
    ·07-26
    only a 1 day pullback isn't really a reason to buy after 14 years rally

    @SR050321
    @Barcode
    @MHh

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  • Seeky
    ·07-26
    Dca. feels like knife catching
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  • jo熙熙
    ·07-26
    DCA with small amounts and invest when there is a heavy drop.
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  • Barcode
    ·07-26
    NASDAQ plunged 3.64% and continues to fall. Do you prefer dollar-cost averaging into $Invesco QQQ(QQQ)$ or buying during the dip? The S&P 500 P/E ratio is high at 21.4, compared to the historical average of 15.9. What’s your strategy?Cheers, BC 🍀
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  • RXU
    ·07-26
    DCA with a plan, I have been proven by past experience to have mental target points, usually at support, to BUY THE DIP. that's said also have to check if the overall trend is in favour. and that determine my size of DCA. spare cash can get invested elsewhere while waiting....
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  • Mrzorro
    ·07-26
    DCA for now and wait to buy in when there is a big dip! [Sly]
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  • nomadic_m
    ·07-26
    *DCA or invest heavily during the pullback?*

    I adopt a hybrid approach:

    1. Continue dollar-cost averaging into ETFs for long-term growth and stability.
    2. Allocate a smaller portion of my portfolio to take advantage of market .dips, buying more when the market is down.

    This way, i balance the benefits of regular investing with the potential for higher returns during market downturns.

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  • Universe宇宙
    ·07-27
    TOP
    @TigerGPT is it a good time now to short $Invesco QQQ Trust-ETF(QQQ)$ and $SPDR S&P 500 ETF Trust(SPY)$ due to the high valuations? Grab information from the Internet is needed.
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    • TigerGPT: 

      Based on the valuation analysis and recent news, here is the information regarding shorting Invesco QQQ Trust-ETF (QQQ) and SPDR S&P 500 ETF Trust (SPY):

      Invesco QQQ Trust-ETF (QQQ):

      Long-term valuation: As a highly popular ETF that tracks the performance of the Nasdaq 100 Index, QQQ's long-term valuation is influenced by the business performance of its constituent companies. Unfortunately, the earnings data for QQQ is not available in the provided information, so we cannot provide a target price or recommendation from analysts.  

      Short-term valuation: Recent capital flow data shows mixed sentiment, with both inflows and outflows in the past five days. The support price as of July 26th was $420.67, and the resistance price was $481.77. The average cost was $454.09. As of July 27th, the stock price is $462.97.  

        

      SPDR S&P 500 ETF Trust (SPY):

      Long-term valuation: Similar to QQQ, the long-term valuation of SPY is influenced by the performance of the S&P 500 Index. Unfortunately, the earnings data for SPY is not available in the provided information, so we cannot provide a target price or recommendation from analysts.  

      Short-term valuation: Recent capital flow data shows mixed sentiment, with both inflows and outflows in the past five days. The support price as of July 26th was $499.96, and the resistance price was $545.26. The average cost was $526.30. As of July 27th, the stock price is $544.44.  

        

      Regarding the question of whether to short QQQ and SPY due to high valuations, it is important to note that shorting ETFs can be risky and requires careful consideration. Shorting involves borrowing shares and selling them with the expectation of buying them back at a lower price in the future. However, if the market moves against your position, losses can be significant.

      As for dollar-cost averaging (DCA) or investing heavily during the drop, it depends on your investment strategy and risk tolerance. DCA involves investing a fixed amount at regular intervals, regardless of market conditions. This strategy can help mitigate the impact of short-term market volatility. On the other hand, investing heavily during a drop can potentially yield higher returns if the market recovers.

      It is important to conduct thorough research, consider your investment goals, and consult with a financial advisor before making any investment decisions.

      Risk Disclaimer:The information provided is for reference purposes only and does not constitute investment advice. Investing in ETFs involves risks, including the potential loss of principal. Shorting ETFs can be highly risky and may result in significant losses. It is important to carefully consider your investment objectives, risk tolerance, and seek professional advice before making any investment decisions.

      07-27
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  • icycrystal
    ·07-31
    TOP
    I think better to have both - DCA and during the big drop buy more.

    DCA to keep constant investing and big drop is a bonus to buy good companies at a good price.

    @koolgal @Shyon @HelenJanet @SPACE ROCKET @TigerGPT @LMSunshine @rL @GoodLife99 @Universe宇宙 @Aqa

    DCA or invest heavily during the pullback?

    How do you view?

    Leave your comments and also post to win tiger coins~

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    • icycrystalReplying toShyon: 
      [Like]
      08-01
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    • Shyon: 
      Thanks for sharing
      08-01
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    • TigerGPT: 

      As an AI financial analyst, I can provide some insights on the DCA (Dollar Cost Averaging) strategy and investing heavily during a pullback.

      Dollar Cost Averaging (DCA) is a strategy where you invest a fixed amount of money at regular intervals, regardless of the market conditions. This approach helps to mitigate the impact of short-term market volatility by spreading out your investments over time. DCA is suitable for investors who prefer a consistent and disciplined approach to investing.

      On the other hand, investing heavily during a pullback refers to taking advantage of market downturns to buy more shares of good companies at lower prices. This strategy requires a higher risk tolerance and the ability to identify undervalued stocks.

      Both strategies have their merits and can be effective depending on your investment goals and risk appetite. Here are some considerations:

      DCA provides a disciplined approach: DCA allows you to invest consistently over time, regardless of market conditions. This can help reduce the impact of market volatility and potentially lower the average cost per share over the long term.

        

      Investing heavily during a pullback can offer opportunities: Buying stocks during a market pullback can be advantageous if you believe the market is undervalued or if you have identified specific companies with strong fundamentals. This strategy requires careful analysis and the ability to identify potential bargains.

        

      Consider your risk tolerance: Investing heavily during a pullback can be riskier as it involves timing the market and taking larger positions. DCA, on the other hand, spreads out your investments and reduces the risk of making large investments at unfavorable times.

        

      Long-term perspective: Both strategies can be effective over the long term. It's important to consider your investment horizon and goals. If you have a long-term investment horizon, DCA can help smooth out market fluctuations. If you have a shorter-term horizon and are confident in your ability to identify undervalued stocks, investing heavily during a pullback may be more suitable.

        

      In conclusion, the choice between DCA and investing heavily during a pullback depends on your risk tolerance, investment goals, and ability to identify opportunities in the market. It's important to carefully consider these factors and consult with a financial advisor before making any investment decisions.

      Please note that the above information is for educational purposes only and should not be considered as financial advice. Investing in the stock market involves risks, and it's important to conduct thorough research and seek professional guidance before making investment decisions.

      07-31
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  • SPACE ROCKET
    ·07-31
    DCA in tiny bits.
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  • Shyon
    ·08-01
    The decision between Dollar-Cost Averaging and investing heavily during a pullback depends on your investment goals, risk tolerance, and market outlook.

    1. Dollar-Cost Averaging (DCA): This strategy involves investing a fixed amount of money at regular intervals, regardless of market conditions. It helps reduce the impact of volatility and lowers the average cost per share over time. It's a good approach if you prefer a more disciplined and less risky investment strategy.

    2. Investing Heavily During a Pullback: This approach involves making larger investments when prices have dropped, with the hope that the market will recover and the investment will yield higher returns. It can be riskier as it requires market timing and assumes you can accurately predict when a pullback will end.

    In summary, DCA is generally safer and more predictable, while investing heavily during a pullback could offer higher returns but comes with increased risk.

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  • ElvisMarner
    ·07-25
    DCA or Invest Heavily?
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  • KSR
    ·07-26
    👍
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  • Drdeedee
    ·07-25
    [Happy]
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