Originally posted by 48&34
Read a very interesting article on MarketWatch entitled something like " The last article you will ever need to read about timing the market".
The premise was that Dollar Cost Averaging, ( DCA) almost always produced a better long term result than investing further cash funds at each dip. You might at this stage think it is largely because mere mortals quite often don't get the dips correct, but no, there is more. The investor is now given god like ability and has omniscience, so always picks the bottom of the dip correctly.
A chart is plotted since around 1930 to 2019 with only 2 lines, one being the returns based on DCA buying the US index regularly every month. The other line is buying the dip perfectly periodically. Since around 1960 until the present, DCA was consistently ahead. And the other problem is that even the smartest investor has no hope of achieving omniscience.
I did read that, I think all writers can 'design" to get the outcome they'd like to present...
Couple things,
1. No interest on cash held waiting for dip?
2. Can't sell any stock once in.
3. Market Indexes are rigged (ie: they constantly chuck out the poor performers and throw in the biggest movers, biased to upside)
and on top it that, they quoted Peter Lynch...who beat the index by double during his tenure at Fidelity. I imagine that would be rather hard with DCA.
(20min delay)