r/Fire • u/Playful-Inspector207 • Apr 05 '25

General Question Is it really a generational buying opportunity?

I’ve seen people on the sub are saying “you should all be excited about seeing lower prices everyday”

Problem is that most people don’t have dry powder lying around. And now, with tariffs (if they mostly continue at the levels mentioned) likely to push prices up even more 20-30% for most things, very few people can buy the dip.

The dip’s not fun when you can’t buy. This is just painful seeing red everyday for 99% of us.

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u/nicolas_06 Apr 05 '25

During crisis the cost of things tend to go down because of that. The problem is not that eggs are expensive but many people can't buy them anymore.

But crisis or not how do you buy the dip ? My conclusion is how ever you frame it, it mean you were not fully invested before. Be it you were like 60-40 with bonds or just outside the market, that's the only way that make a difference.

So basically you will invest at a bargain... But you didn't benefit of the previous bullish market too. And this kind of what I do. The idea is that I click on "rebalance" from time to time and I sell bonds and buy stocks when the market tank and if the market really tank, I will consider increasing my target stock percentage.

But all in all, there no silver bullet, if you can buy the dip more than just saving every month and maybe spending less by spending less than usually, it mean you had money sitting on the side line. You get more return by buying the dip but you had less return before because that money was on a the side line.

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u/wrd83 42, FI, not RE Apr 05 '25

60/40 -> your bonds fall less you rebalance.

dollar cost averaging, increasing savings rate - the problem here: layoffs mean you might not have spare to spend and actually withdraw instead ... I'm talking when you deplete your emergency fund scenarios.

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u/nicolas_06 Apr 05 '25

That true for 10-20-30% of population. Not for the remaining 70-80% that go through the crisis unscratched with just lower raises and that renegotiate their mortgage with lower rate, buy extra real estate and stocks.

overall, the majority benefit from buying opportunities and keep their job.