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Greetings, Stephan, and welcome. You asked:

I am 24 years old and last year I started a ROTH IRA and put the max $2000 in. I bought $1000 of CSCO and MSFT. Technology is my sector and I thought that those 2 companies were valued reasonably at the time(roughly $60/share each).

I am about to make my investment for this year and I am struggling with what to do. I had originally intended to buy WMT and KO in order to diversify a little from the tech sector since it is so volatile. Year three in my plan was to buy $2000 worth of an S & P 500 index fund.

However, CSCO and MSFT are $30 and $20 /share lower than they were last year when I bought them. I am now thinking that it might be wise to DCA and buy more of CSCO and MSFT since I still believe that they are good companies and will thrive in the future. Which should I do?

I guess the real problem is that I know that once I make the investment that I have to wait another year before I can make another.

So my options are:
1. Buy $1000 of WMT and CSCO each
2. Buy $1000 of CSCO and MSFT each
3. Buy $2000 of an S&P 500 index fund

I am leaning towards #1 since that was my original plan, but I would like to hear what some Fools have to say about it.

In Fooldom, we believe investment choices are a personal issue that each person should decide on their own. It looks like you have done the appropriate analysis, so if you have faith in yourself, then there is absolutely nothing incorrect about #1. There's nothing incorrect by the other two choices, either. It's your money, and your decision. That's as it should be.

BTW and FWIW, you have scads of time, so regardless of which you choose my bet is you will come out ahead in the long run. :-)

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