Click to enlargeThe disastrous financial meltdown of the global market on Monday can appear to be quite scary. But whenever such panic or excess volatility exists, it can turn into some buying opportunities.
Using a simple method, we bought SPY (S&P 500 tracker ETF) when excess volatility is presented. This is a well known method call "dollar average down". And the result of the method was quite successful as it managed to have a 46% capital gain over span of 6-7 years- that's not including dividends!
Of course, hindsight is always 20/20. I wonder if we did this in 1987-88, would it work out ok?
Using a simple method, we bought SPY (S&P 500 tracker ETF) when excess volatility is presented. This is a well known method call "dollar average down". And the result of the method was quite successful as it managed to have a 46% capital gain over span of 6-7 years- that's not including dividends!
Of course, hindsight is always 20/20. I wonder if we did this in 1987-88, would it work out ok?
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