4 ms·
I wonder if there is a fixed buy date that outperforms dollar cost averaging. Something like "around new years lots of people get money they invest, so prices t
by rocqua 3y ago
I wonder if there is a fixed buy date that outperforms dollar cost averaging. Something like "around new years lots of people get money they invest, so prices tend to pop, so buy in november'
There just needs to be some kind of yearly pattern for such a strategy to exist. I even recall reading about it on money-stuff. But I can't remember the months.
- veqq 3y agoThere are a lot of these. Nowadays, gamma flows are discussed a lot in public spaces. Ignoring most of the topic, combining options expiry dates with typical fund rebalancing dates is simple. (Buy in the last week of the month, basically.) Historically, April, July, November are the best, while January, June and September are the worst. "Sell in may" and go away used to be a common phrase too. But if you are purely DCAing, such points don't make much sense. Following the interest rate cycle or business cycle is straight forward, or cycles in your own industry. Oil, shipping and microprocessor companies for example forecast years out when their profitable and unprofitable periods will be, so you can move your capital in and out for much higher performance.
- ttyprintk 3y agoI’d rather see a study where September and November are chosen for gold bullion, and other months for equities. I’ve heard this coincides with the wedding season in India —- maybe someone can confirm.
- PaulDavisThe1st 3y agoIf there was such a pattern, and then a strategy to exploit it, the pattern would change.