Dr C Writes:I think that yes, it probably does make sense, especially right now with the market no longer rip roaring into infinity and beyond to put the whole $3K in FUSEX index and then split future salary deposits between FUSEX, One Tech Fund and One "Other" Fund that's invested different to Tech Fund.mphipps writes: The interesting thing about dollar cost averaging is that is doesn't care which way the market is going. Sometimes the more time I spend looking at my investments the more times a mess up. So I would do what you have suggested. And in six momths you probably will have more assets in tech than if you moved all in today. And you will be happier. By having only 20% in tech a 20% drop in tech only means 4% drop in portfolio. Everything has a critic and dollar cost averaging has one. It says that dollar cost averaging is more expensive because stocks stay higher for longer than they stay lower. So by combining dollar cost averaging with asset allocation you can average this problem out.
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