I recently posted a Letter to the Editor to the Early Retirement Planning Insights site entitled It’s Price Increases That Are “Lumps” for Most of Us.
Juicy Excerpt: The Passive Investing model encourages us to think of price increases as good news and to think of price drops as bad news. For those who expect to be buying stocks for some years to come, the realities are precisely the opposite (not for the first time!) of what is taught under the Passive Investing model. It is generally price increases that are “lumps,” not price drops. A price drop causes the value of the shares we already own to diminish (the lump side of the equation) but it also makes all the shares we have yet to purchase more appealingly priced (the more important side of the equation for most).