UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next
Author: joelxwil Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75377  
Subject: Re: $-Cost Averaging/Time Diversification: Myths Date: 3/18/2012 2:51 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
"article talking about lump sum investing"

Yes. I remember that article. But as I recall (and it was a long time ago), the market had been relatively calm and generally rising during the period in question. It was before the major troubles of 2000 - 2002, and the more recent stuff. If you put up a chart of SPY with distributions re-invested, you can see that from around September 2000 to the present time, SPY has only moved up a little over 13%, or a little over 1%/year compounded. On the other hand, between September 2000 and March 2003, it lost 43%. The decline was worse between Oct. 2007 and March 2009.

With movements like that, it does matter when you buy and sell.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Macro Economics

The Future, or What's Left of It
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement