The SSA investor must accept the fact that during a stock market crash of 40% or more, most or all of the money in the bond-cash portion of the portfolio will be used to buy specific stock index funds, according to specific Buy Rules. At that time, the portfolio will show a significant loss on paper, compared to pre-crash portfolio value. This is the only way to consistently buy large amounts of stock “on sale.” However, the subsequent retracing of the stock market (and it ALWAYS retraces) will then result in a huge gain in value over and above even pre-crash portfolio value. This will easily exceed the gain of most other investors after the stock market retraces back to its pre-crash levels and beyond.
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