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<<If you have, say, $100,000 in stocks, how much protection are you really buying by investing an additional $1,000 a month for 12 months, as opposed to $12,000 now? If you assume the slower pace makes sense, shouldn't you pull out 11/12 of your existing investment, and put IT in slowly over the following 11 months?
>>


Nope I don't think so.

You are making assumptions that you know what is going to happen. I use DCA when situations have a degree of ambiguity. In such saituations, diversifying your investments over time makes good sense, in my view.



Diversification is often a useful strategy to manage risk. I think that applies to spreading your purchases out over time, just as it can apply to buying into several diferent kinds of investments.




Seattle Pioneer
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