It's worth mentioning that DCA'ing on the way down is only applicable to those with sturdy income and an emergency cushion of fiat. I am personally above water thanks to my secure job and a small emergency stash of fiat. However if multiple inevitable headaches accumulate and occur at once in my life (e.g., car problems, medical emergencies, etc.) I would be pretty screwed. I have halted DCA, hodling my crypto, and am focusing on adding to that fiat stash.
As you say, the ladder is being pulled fast. I want to be secure knowing I can still grab it.
The only mistake is blowing your load too soon and going all in before an actual market bottom. Too many people trying to call the bottom before the Fed capitulates and left in drawdown hoping for the market to turn around.
The maintenance of an emergency fund is always key above any investment. At least 6 months of money set aside is always what provides the freedom to maintain investments and not sell, so prioritizing the expansion of your emergench fund to whatever value you feel provides you safety and stability is in a way a form of investment as it protects your investments at a later date.
That's from an older post and I have copy-pasted that into at least 2 other posts as well with the same wrong "<" sign. I better go fix the original so I don't make the same mistake again.
FOMC members are bound to the shareholders of the regional federal reserve banks, no? Why do you say that the Fed is not independent of the federal government?
Because fed chair members explicitly act in defense of the administration in power and don't function independently. They make major pivots in policy quite often in defense of this.
Its illuminating to listen to Greenspan or Bernanke's interviews after their terms ended. Greenspan essentially says that he knew better than to cut rates but was only doing so to prolong the stock market highs for the administration.
They all behave this way. I've not seen a federal reserve that acted independently as their charter states. They all routinely violate their own stated goals and sound fiscal policy to protect the administration. I expect that when the cards are down and Powell has to choose between saving the dollar, and fighting inflatiom, or avoiding a treasury default and market collapse, he'll choose to protect the administration at the expense of the dollar itself.
To quote Tom Luongo, "They are vandals doing this on purpose, they are not incompetent"
It's worth mentioning that DCA'ing on the way down is only applicable to those with sturdy income and an emergency cushion of fiat. I am personally above water thanks to my secure job and a small emergency stash of fiat. However if multiple inevitable headaches accumulate and occur at once in my life (e.g., car problems, medical emergencies, etc.) I would be pretty screwed. I have halted DCA, hodling my crypto, and am focusing on adding to that fiat stash.
As you say, the ladder is being pulled fast. I want to be secure knowing I can still grab it.
Thanks again for the great work.
Nothing wrong with pausing the DCA.
The only mistake is blowing your load too soon and going all in before an actual market bottom. Too many people trying to call the bottom before the Fed capitulates and left in drawdown hoping for the market to turn around.
The maintenance of an emergency fund is always key above any investment. At least 6 months of money set aside is always what provides the freedom to maintain investments and not sell, so prioritizing the expansion of your emergench fund to whatever value you feel provides you safety and stability is in a way a form of investment as it protects your investments at a later date.
Love your content bruv. FYI, you have the wrong “<“ sign in the caption of the photo of interest rates to fed debt service.
LOL LOL, that's funny.
That's from an older post and I have copy-pasted that into at least 2 other posts as well with the same wrong "<" sign. I better go fix the original so I don't make the same mistake again.
FOMC members are bound to the shareholders of the regional federal reserve banks, no? Why do you say that the Fed is not independent of the federal government?
Because fed chair members explicitly act in defense of the administration in power and don't function independently. They make major pivots in policy quite often in defense of this.
Its illuminating to listen to Greenspan or Bernanke's interviews after their terms ended. Greenspan essentially says that he knew better than to cut rates but was only doing so to prolong the stock market highs for the administration.
They all behave this way. I've not seen a federal reserve that acted independently as their charter states. They all routinely violate their own stated goals and sound fiscal policy to protect the administration. I expect that when the cards are down and Powell has to choose between saving the dollar, and fighting inflatiom, or avoiding a treasury default and market collapse, he'll choose to protect the administration at the expense of the dollar itself.