Dollar Cost Averaging

Suppose you have a large sum of cash that you want to invest.  Should it all be invested at once, or incrementally over a period of time? The fear many people have is that they’ll buy into the market at the peak, and their investment will immediately fall in value afterwards.

In this post we’re going to look at a case study of the difference in outcomes between putting all of the capital into stocks at once, vs. putting 12.5% in each quarter over two years.  Which is better isn’t really clear cut, as there are times each strategy does better than the other.

If there are investment topics you’re interested in that I haven’t covered yet please send me an email:

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