All markets have dropped significantly in these few months, do you guys think it is a good time to invest again now?
As Warren Buffett said, “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”.
The more the drop, the more to buy!!!
Backtesting is always the most scientific way to answer this.
Let's say you want to buy when SP500 droped a certain percentage from its previous peak.
Then, you can try on the platform to see what is the optimal value for the drop. So you can compare with the value of the current market drop.
Original Posted by - b'Jeremy':Backtesting is always the most scientific way to answer this.Let's say you want to buy when SP500 droped a certain percentage from its previous peak.Then, you can try on the platform to see what is the optimal value for the drop. So you can compare with the value of the current market drop.
Backtest can provide some insights for investment, but we can't fully rely on the backtest result for future projection.
For some events that had not have happened in the past (eg. negative oil price in 2020), a strategy using history before 2020 for backtest is highly likely to suggest a buy action. However, the oil market eventually dropped to $-30.
