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Investing over a period of time instead of all-at-once, in order to diminish the effect of market peaks and make sure you hit some of the valleys, is called Dol
by timdellinger 17y ago
Investing over a period of time instead of all-at-once, in order to diminish the effect of market peaks and make sure you hit some of the valleys, is called Dollar Cost Averaging. I think the reason no one seems to talk about it much is because it's a relatively rare occurrence that someone suddenly has a large lump sum to invest. Most financial talk is about more common personal finance scenarios. That said, there's lots of discussion on dollar cost averaging, which, like most things, is easier to find once you know its name.
- JacobAldridge 17y agoI think Dollar Cost Averaging is also fairly common in discussions about regular savings plans - eg, establishing an automatic savings plans that deducts $x from each salary and invests in a fund has the benefits of slowly building savings without you missing it, and dollar cost averaging into a market. Perhaps it's more common here in Australia, where compulsory superannuation (currently at 9%) means almost all of the workforce are investing in shares in some form.