Why I Don't Like Dollar Cost Averaging

4 years ago
2

By dollar-cost averaging (DCA) you are really saying the market is going to drop.
That you aren’t putting all your money in at once because you believe the market is too high.
By dollar cost averaging and betting the market will drop, the true premise is in saving yourself some pain.
For any given year, the odds of this happening are only 23%. This percentage odds also assume you’re putting your money into an index fund.
See for yourself here: https://guidingcents.com/why-i-dont-like-dollar-cost-averaging/

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