Investing in the stock market is like looking at a dot picture. You know those paintings made up of small dots.
If you are too close, you cannot see the big picture.
This week the market continues to fall, but when we step back and look at the longer-term trend we see a completely different picture.
There is still a strong upward trend at present.
The Bears will say if it breaks to the downside we can expect it to move lower. Sure, that makes sense, but look at the current long-term trend.
My money is that this downwards move is close its bottom. Making now a good time to accumulate some of those companies which have been looking expensive.
We have a couple of resistance points at present, first is around 5400 which is where the market is now. The next one is at 5100 points, which is why we need to accumulate and dollar cost average into the companies we like.
After a strong Bull market run, never dump all your cash in, on the first pullback.
Hedge your risks and take advantage of any dips. But keep some cash aside in case it goes lower. Then you can continue to dollar cost average into the companies you like.