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How are you so sure this is "the peak"? Australia had 25 years without a recession.
by justinzollars 7y ago
How are you so sure this is "the peak"? Australia had 25 years without a recession.
- throw0101a 7y agoThere is not way to be sure, which is why (per the second link) it's best to invest a little every regardless of what the news headlines say.
- pmiller2 7y agoNot true. DCA beats holding onto cash and waiting for “the bottom,” but if you have a lump sum to invest, investing it all immediately beats DCA about 2/3 of the time. Hence the saying “time in the market beats timing the market.” See this study by Vanguard: https://personal.vanguard.com/pdf/ISGDCA.pdf https://personal.vanguard.com/pdf/ISGDCA.pdf
- throw0101a 7y agoI'm aware. It should be noted that "DCA" is often used as a colloquial synonym for "continuous, automatic investing": > But most individual investors, especially in the context of retirement investing, never face a choice between lump sum investing and DCA investing with a significant amount of money. The disservice arises when these investors take the criticisms of DCA to mean that timing the market is better than continuously and automatically investing a portion of their income as they earn it. * https://en.wikipedia.org/wiki/Dollar_cost_averaging#Confusion https://en.wikipedia.org/wiki/Dollar_cost_averaging#Confusio...
- justinzollars 7y agowhats DCA?
- throw0101a 7y agohttps://en.wikipedia.org/wiki/Dollar_cost_averaging https://en.wikipedia.org/wiki/Dollar_cost_averaging
- recursive 7y agoI think "dollar cost averaging". https://en.wikipedia.org/wiki/Dollar_cost_averaging https://en.wikipedia.org/wiki/Dollar_cost_averaging It seems to refer to periodically re-balancing the distribution of one's holdings based on target proportions of total dollar value.
- xsmasher 7y agoNot "re-balancing" per se - but investing a fixed amount at regular intervals (either from a lump sum, or as you earn it.)
- raducu 7y agoWhat are the odds if you invest it all imeddiately after 10 years of a bull market run?
- deleted 7y ago[deleted]
- pmiller2 7y agoDCA still wins 60% of the time over all rolling 12 month periods going back to 1926. https://awealthofcommonsense.com/2018/05/the-lump-sum-vs-dollar-cost-averaging-decision/ https://awealthofcommonsense.com/2018/05/the-lump-sum-vs-dol...