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In a situation where you think the market will bounce around with no net gain or loss, DCA may make sense. With DCA, volitility and zero gain will equal a gain. It doesn't matter much anyway. After all, lump sum is "market timing" too.

Yes, in that specific situation, DCA makes sense. (I believe this is a relatively rare behavior for the market, though.)

That is...

DCA your ENTIRE investment portfolio - old money AND new money - makes sense.

DCA only the new money, while leaving the old money in the market (where it will, net, yield nothing) does not.

Unless, that is, you think the dividend yield will exceed the benefit from DCA - in which case you should throw your entire portfolio, old and new, into the dividend stocks.
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