chart, page-46

fair enough cato.
my point is that rather than bying into a share as a single lump sum, one can invest a few thousand at a time if you like the company but see short term downside risk in timing the market because you are concerned that the p/e valuation could be expensive or there are internal/ external sp risks.
i had this concern with bkl which is why i bought a conservative package at 150, and when it dropped i then saw it as a good time to increase my holdings rather than stress and sell half.
i must emphasise that this is based on my opinion that bkl is currently trading below fair value and that it is oversold.
there is a risk that i am wrong in trying to 'outsmart' the market, but one must try to combine their own analysis with market sentiment rather than just buy or sell when others have already done so.
in summary i agree that you are right in general, except where you believe the sharp selloff is not justified in which case you should consider 'buying the dip' at your own risk.
cheers mate