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Dollar Cost Averging vs. Lump Sum

edited May 2018 in Off-Topic
Although the author states (and his research shows) lump sum wins most of the time ... I am of the DCA camp. This is because I've gone all in "lump sum" with some positions just to see them take a dive. With this, I like to average in with my positions especially in a fully valued market. Thus far in building my commodity strategy fund position (which is about 80% complete) I've captured about 70% of the upside since the fall of 2017. And, I am happy with that.

http://awealthofcommonsense.com/2018/05/the-lump-sum-vs-dollar-cost-averaging-decision/

Comments

  • edited May 2018
    My experience with DCA was not good.

    When you buy vs What you buy and Lumpsum, gets my vote, and this has nothing to do with that article. My opinion formed from personal experience.

    Also, "DCA" and "lumpsum" need to be qualified. Auto-pilot DCA IMO is foolish. Blind DCA is also foolish. Similarly buying lumpsum after market has been on a tear is also foolish. And the amount of time you have "left" makes everything subjective. Not to mention I think re-investing distributions blindly is also foolish.

    Finally, articles such as this seem obligatory quota fillers. "Research" is looking at past data which is not indicative of future results. They never take into account someone's personal situation and deal in absolutes.

    More entertainment than any thing else. But then I would say that about most anything I read. I get my comedy from regular media channels and my news from Comedy Central.
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