3 ms·

All that shows is that dollar cost averaging has been better than the strawman he set up. 1. It might not be the case in the future. 2. There may be better st

All that shows is that dollar cost averaging has been better than the strawman he set up. 1. It might not be the case in the future. 2. There may be better strategies not explored. 3. It relies on the stability of the financial system and has extreme home country survivorship bias. Of course the richest country for the last 100 or so years is going to look like it has a stock market that can't loose. In other words this look backward only, and beats the shit out of a lousy straw man.

throw0101a 7y ago
> All that shows is that dollar cost averaging has been better than the strawman he set up. What strawman? The "buying the dip" is a popular strategy that lots of people try to employ: * https://www.thestreet.com/investing/earnings/when-to-buy-the-dip-in-disney-stock-15049068 https://www.thestreet.com/investing/earnings/when-to-buy-the... * https://www.bloomberg.com/news/articles/2019-09-03/look-who-s-buying-this-dip-do-they-know-better-taking-stock-k03g7c6b https://www.bloomberg.com/news/articles/2019-09-03/look-who-... * https://www.nerdwallet.com/blog/investing/buying-the-dip-stocks/ https://www.nerdwallet.com/blog/investing/buying-the-dip-sto... It explores two strategies that have are used by many people: yes there are others, but it simply does A/B testing to try to find the better of these two. It seems that DCA is better than buying the dip (BtD); that doesn't mean there's something better than DCA, but it says that DCA wins over BtD in this part of the bracket. It looks at past data to build a model and makes future predictions: we can invest theoretical money and test the theory that DCA is better the BtD, and check back in a few years to see if the prediction is correct.
- mpalczewski 7y ago
  You’re right, I had assumed it was showing that dca is the best strategy. > It seems that DCA is better than buying the dip (BtD) Dca was better than BtD The problem with some if this is that it frequently happens that strategies work the best right before they stop working without warning. It’s difficult to rule out that possibility.

throw0101a 7y ago

> All that shows is that dollar cost averaging has been better than the strawman he set up. What strawman? The "buying the dip" is a popular strategy that lots of people try to employ: * https://www.thestreet.com/investing/earnings/when-to-buy-the-dip-in-disney-stock-15049068 https://www.thestreet.com/investing/earnings/when-to-buy-the... * https://www.bloomberg.com/news/articles/2019-09-03/look-who-s-buying-this-dip-do-they-know-better-taking-stock-k03g7c6b https://www.bloomberg.com/news/articles/2019-09-03/look-who-... * https://www.nerdwallet.com/blog/investing/buying-the-dip-stocks/ https://www.nerdwallet.com/blog/investing/buying-the-dip-sto... It explores two strategies that have are used by many people: yes there are others, but it simply does A/B testing to try to find the better of these two. It seems that DCA is better than buying the dip (BtD); that doesn't mean there's something better than DCA, but it says that DCA wins over BtD in this part of the bracket. It looks at past data to build a model and makes future predictions: we can invest theoretical money and test the theory that DCA is better the BtD, and check back in a few years to see if the prediction is correct.

mpalczewski 7y ago
You’re right, I had assumed it was showing that dca is the best strategy. > It seems that DCA is better than buying the dip (BtD) Dca was better than BtD The problem with some if this is that it frequently happens that strategies work the best right before they stop working without warning. It’s difficult to rule out that possibility.