No – It’s Not a Buying Opportunity

There’s something I hate even more than a 5% drop in the S&P 500 in one week. It’s any mention of this being “a buying opportunity.” No – it’s not a buying opportunity, it’s a serious, sharp loss. And it hurts.

I hate all the platitudes and cliche phrases that inevitably get slung around when there’s a sharp drop in stocks.

“It’s alright. I’m a long-term investor.” Yeah, so am I and my long-term investments just lost 5%.

“It’s a buying opportunity.” So why wasn’t it a buying opportunity four months ago when the price was even cheaper? Somehow that wasn’t a good point to buy?

“The market was overvalued. A correction was needed.” Who says it was overvalued? And why does that mean a correction is somehow inevitable? My portfolio certainly didn’t feel ‘overvalued’ to me. I didn’t need a correction.

“If you dollar cost average, this is a good thing.” If your assets go down in value, it’s not a good thing.

“Now I can pick up some bargains.” And how are you buying these bargains? With money you kept out of the market, presumably. So if you’re such a long term investor who ignores market drops, why did you have money sitting around not in the market?

I’m not complaining about the market drop and I never will. That’s how the game is played. I’m comfortable with my risk exposure. But spare me the talk about what a good thing a sharp market drop is.