Stock market dip

If you have a watch list of shares or ETFs that are now cheaper than the valuation you put on them, then now is probably a good time to dollar cost average into them. But if you are new and don’t have a list, there seems to be a fairly general sell-off happening, so perhaps a broad Australian market ETF (e.g. IOZ, A200, VAS, MVW), or international market (e.g. VGS, QLTY, IOO) or a US market (e.g. IVV, NDQ).

Noting that the Australian dollar is also falling, so you aren’t getting as much for your money in non-Australian shares.

Also, don’t go all-in just yet as there is probably more falls to come (i.e. a better clearance sale). In the GFC prices kept falling for 18 months in Australia, but only 1 month (if that) in the 2020 covid crash. Maybe monthly is a good cadence?

When considering investing during periods of market volatility, such as the one you mentioned due to imposed tariffs, it’s important to first assess your comfort level with market fluctuations. Market downturns, like the 35% drop in 2020, can test an investor’s resolve. Reflecting on how you might react to such scenarios can help you make more informed decisions.

In terms of when and what to invest in during volatile periods, here are a few general strategies:

1. Diversification: This is key in managing risk. By spreading your investments across various asset classes (stocks, bonds, real estate, etc.), sectors, and geographical locations, you can potentially reduce the impact of a decline in any single area.

2. Dollar-Cost Averaging (DCA): This strategy involves investing a fixed amount of money into a particular investment at regular intervals, regardless of the share price. During a downturn, DCA can work in your favor by allowing you to buy more shares when prices are low and fewer shares when prices are high, potentially lowering the average cost per share over time.

3. Focus on Quality: Investing in well-established companies with strong financials and a good track record of weathering economic storms can be a safer bet during turbulent times. These companies often have the resilience to recover from market downturns.

4. Consider Long-Term Goals: It’s crucial to keep a long-term perspective when investing, especially in stocks. Short-term market movements, while potentially alarming, should not deter you from your long-term investment goals.

5. Stay Informed: Keep yourself updated with reliable financial news and analysis. This can help you make more educated decisions based on current market conditions and economic indicators.

6. Review and Adjust: Regularly review your investment portfolio to ensure it aligns wi

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