Tuesday, April 30, 2019

Should You Time The Market?

https://ofdollarsanddata.com/even-god-couldnt-beat-dollar-cost-averaging/
You have 2 investment strategies to choose from.
  1. Dollar-cost averaging (DCA):  You invest $100 (inflation-adjusted) every month for all 40 years.
  2. Buy the Dip: You save $100 (inflation-adjusted) each month and only buy when the market is in a dip.  A “dip” is defined as anytime when the market is not at an all-time high.  But, I am going to make this second strategy even better.  Not only will you buy the dip, but I am going to make you omniscient (i.e. “God”) about when you buy.  You will know exactly when the market is at the absolute bottom between any two all-time highs.  This will ensure that when you do buy the dip, it is always at the lowest possible price.


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