Another reason for averaging into the market in general. I know this has been mentioned, but not sure any ideas for accomplishing this have been proposed. Obviously, the more money you are working with, the easier it is. For those with a pretty small amount (say $10,000), you may buy $1,000 - $2,000 of a certain stock and wait a month before buying another stock instead of buying say $400 of 5 stocks each month. This would cause your commisions alone to put you into a relatively substantial hole.
In general, if you can break up the "entry" into 4-5 chunks over around 6 months, you are likely to provide yourself a bit of downside protection in capital value. We are likely to have a bit of a volatile year. Think about the things going on and the risk / opportunity they put into the market. Note that volatility can be good!
EU liquidity
Potential for conflict between Isreal / Iran, Iran sanctions
Easing in Emerging Markets
US Election year
I heard as part of the Michigan primary yesterday that essentially all wealthy republicans are voting for Romney. Thinking about if Romney isn't elected, are these people going to move some of their investments into cash?
Lots of things to consider, think about, and occasionally.... worry about!
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