What should I do if and when the market really goes down?

Back on July 22nd, I sold off all my stocks and ETF’s and now have all my holdings in investment savings accounts at the TD. About 40% of this is in my registered accounts and 60% outside of same.

My thinking is that there will be a significant correction happening in the near future and I plan to buy back in when that has happened.

I *may* just leave my registered stuff at the TD and, if so, would likely buy some ETF’s from them.

With my non-registered stuff, I’m considering going it on my own but would want to do something quite simple like maybe that Vanguard ETF that Warren Buffet thinks so highly of.

I don’t really have the time or desire to be buying and selling all the time but am thinking I might as well save the 1% advisor’s fee here.

I’m not sure what my question is here other than to hear any thoughts you might have about this.

I had in the past discussed the idea with you of getting into a fund like the TDB2585 – TD Tactical Monthly Income Fund – F with my non-registered stuff and you thought this seemed like an OK fund.

I am interested in making some money that can be withdrawn even though I am aware this has some tax ramifications.

I suppose that may be my question: Do you have anything like that which you might recommend?

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Asked on August 11, 2025 5:09 pm

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Private answer

My general thought process on trying to time the markets is this:

You either get lucky, or you're wrong.

Retail investors are generally best to simply buy strong companies, hold them for the long term, and then dollar cost average into those holdings over time. That way, sometimes they pay fair value, sometimes they over pay, and sometimes they get a deal. What gets difficult is when you start trying to time things. Why? Because most investors will make emotional decisions. They'll sell their stocks right now, wait for a pullback. The markets will go 15% higher, they'll panic they're missing out on the run, buy in, and then the markets will correct.

Or the flip side, they sell stocks on weakness because they think they're going lower, then they'll buy them on some sort of dead cat bounce type activity thinking they've timed the bottom, and stocks head south yet again.

The average retail investor earns around 3.5% annually. Far lower than the market itself. The bulk of the underperformance is trying to time things.

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Posted by Dan Kent

Answered on August 12, 2025 2:39 pm

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Which echoes what John Templeton told me in the mid 1980's - wish I had listened then - thanks Dan

(brucemcl777@gmail.com at August 16, 2025 8:09 am)

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