As far as I understand - The model is not based on absolute price, it’s based on price drop
The so called „buy the dip“ doesn’t always mean buy a lower cost, it just means buy at lower cost at that instance vs the time before around that instance
But with what money? Shouldn’t the dip-buying cash already have been used up while dip-buying last month? If not, how was decided how much of said cash to invest during a dip?
Yes. That’s why I don’t have any buy the dip money
But @Mirager does have cash on sidelines as he is intentionally saving to buy the dip. If it’s financially savvy, maybe no. But that’s what is the idea. Psychologically rewarding buy the dip
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If there was a point to this remark, I would (almost) surely be interested.
Caveat: the bill isn’t law yet and can be significantly changed by the Senate.
However, it seems to include potential meaningful changes in the taxation of some foreign companies which I haven’t analyzed yet: https://taxfoundation.org/blog/us-retaliatory-tax-policies-eu-international-taxes/
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Many things don’t seem sound yet people do them for weird and wonderful reasons 
I’ve been saving a year’s worth of…savings instead of buying every month since June 2024. Why did I do that? Because I did the “invest everything and your gold teeth (I don’t have any)” in 2022-2024, worked well until I realised I had less than a month’s expenses at hand, got nervous, said never again. I did deploy part of it in April: 30% on the first 10% drop, got greedy to plug the next 30% at -19.8% even though my target was -20% as thought it’d go lower, then Trump tweeted the 90 day pause and we had a +10% in a few minutes so this capital is remaining on the sides since then. I know it’s not ideal, however I’ve come to enjoy the flexibility and mental comfort of having a decent cash pillow.
Simple: 30% if we went -10%, another 30% if we went further 10% down, all the rest at -30%. Prices from the absolute ATH in CHF from Feb this year.
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I think it is pretty reasonable. I keep over 10% in BOXX, CAOS. Plus some on gold.
On top of that, I have about 4% stock portfolio yield, so would have 4% to re-invest if dividends are maintained.
I don’t keep much in my bank account, though maybe I should. I always felt more comfortable when there was 20k in there instead of it perpetually being close to zero leading me to always having to manage the balance (I basically sweep everything into the investment account to invest).
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I mean, yeah. I know a couple of people who run with CHF500 in their account, use credit cards and invest everything they can. If they have an unexpected expense coming up they sell some at whatever price…because they have to. I don’t like and wouldn’t be able to do that, even if in nebulous theory cash is a risky asset losing value to inflation. Which…is it true when we’re talking about CHF? I honestly think that given CH’s inflation CHF is more than cash, it’s an asset in fact. Or so I tell myself 
I do get the itch of having 20k burning a hole in your bank account though…
If a pain shared is a pain halved -
I’m holding around 5-6 months of expenses (for 2 pax) on the side at all times (especially now as my wife still builds up her business - don’t need to take the risk of living on the edge (and I’m not comfortable taking margin loans for emergencies)).
If a major drop happens (30% or more) though, even that emergency fund might feel some fingers dipping in. 
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For my part, I still have more than 185k in cash (in CHF), since I only started investing a few years ago after I bought my house (by investing about 4-5k per month = a little more than I usually save), and I’m very skeptical about what the future holds and the fact that the stock market can only go up (even if history says otherwise I agree).
It may be a huge “nonsense”, but I know that I couldn’t sleep well with a security fund limited to a few months of expenses, and I’ve never been able to convince myself to invest larger sums much more quickly (e.g. 10-15k per month).
Although early April would have been a great opportunity to do so.
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No worries. Cash CHF is probably one of the better performing assets YTD in 2025!
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Morning, let me offer an alternative against buying the dip I’ve been edging towards, which seems to be absent in academic portfolio considerations: the bigger the portfolio the less impact any dip buying has, and in order to take advantage of any dip you need to practice market timing, with great chances of failure. 10-20k dry powder on a 100k portfolio can be quite meaningful, 10-20k on a 200k portfolio is meaningless, and gets more and more meaningless the larger the portfolio gets.
So on a personal level, the dry powder saving was a net positive if only because I had an unbalanced portfolio of being all stocks and little cash/diversifiers, whereas now I can just continue buying normally and just leave the cash alone, and more importantly in terms of behavioural development. It’s all learning, man, I’m still very new to this with barely 3.5 years in.
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This comment might ring alarms in Swiss govt or maybe they expected this
“We’re not going to invest in the financial markets in Switzerland,” PIF Governor Yasir Al Rumayyan said an event in Albania on Saturday. “If you change something overnight and wipe out all of your investors, this is a big red flag.”
As former part-owners of CS, perhaps they should have taken a closer look at what their company was doing instead of blaming others. CS has had problems behind closed doors for many years, which the Saudis would have been aware of had they cared.
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I think the complain here is not about CS but what CS was forced to accept from UBS as an offer.
What happened to CS is their own doing and investors should also have consequences. But overnight change of laws by Finma to force this merger have left distrust amongst investors
In other words what might have been best for Switzerland was not best for investors of CS and now foreigners wouldn’t trust easily
Well then why blame Switzerland when the pressure was coming from the US, UK and EU to not split the swiss part of CS into a company and sell the rest according to the too-big-to-fail plan? Switzerland was pressured into this merger and had less to say in all of this than many know.
I understand there are many reasons for such things but everything has consequences
Hopefully the good was better than the bad in long term
Have you done the 2008 crisis with -70% drop? You would be penniless when not even the half of the drop is done… ?
Saudis are … not the smartest people when it comes to investing.
They shouldn’t blame the market, they took a high-risk bet and lost.
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2008 was -58% at the lowest (March 2009) in USD and in CHF terms less as the USD went up during that time.
In 2008/2009 CHF went from 1.00 to 0.89 USD.