I do not plan to time the market. I am happy to invest monthly. However, suppose approximately 80% of your portfolio is stocks and 20% is cash.
How much does the price of an index fund (or a stock) have to drop before you go all in with your spare cash?
That is, suppose you continue to invest monthly as usual, but plan to invest a larger chunk if the market drops. How far does the price have to drop for you to invest a larger chunk?
I understand everyone is different, but I would like to hear some answers along the lines of:
“If the market price dropped by 30%, I would invest 40% of my cash, if it dropped by 50%, I would invest all remaining cash”.
Thanks in advance!