Dollar Cost Averaging vs. Lump Sum Investing Strategy! episode artwork

EPISODE · Sep 21, 2020 · 16 MIN

Dollar Cost Averaging vs. Lump Sum Investing Strategy!

from Modern Value Investing with Sven Carlin · host Sven Carlin

What is the best stock market investment strategy to deploy money is the ultimate question to be answered, if you have money of course. Most people think about whether to deploy it all immediately (LUMP SUM INVESTING) or to stage the purchases over a period of time (DOLLAR COST AVERAGING). Vanguard and other research shows that you'll do better with a lump-sum investment in 70% of cases and better with dollar cost averaging in 30% of cases. So, it is up to you what kind of odds do you wish to bet on. However, you know I will not give you just the stock market investing statistics. By discussing the difference between investing and speculating; the difference between lump sum investing where you invest when you have the money and when a financial instrument fits your required return and dollar cost averaging, where you are more concerned about the market as you try to time it we will also touch on what really matters for the long-term. Another point is discussing the importance of buying the bottom in the market - some stocks are up 50% since March 22, but how much does that change their investment quality? You'll be surprised how important it is! The importance of timing the market will also give you the answer when it comes to investing it all in a lump-sum or dollar cost average over time. Want to know more about what I do? https://goo.gl/MQG2k5 Full-time independent stock market analyst and researcher! STOCK MARKET RESEARCH PLATFORM (analysis, stocks to buy, model portfolio) Stock Ideas and Analyses for The Small Investor: https://goo.gl/GdKEoe I am also a book author: Modern Value Investing book: https://amzn.to/2lvfH3t More at the Sven Carlin blog: https://svencarlin.com/ Check out Modern Value Investing YouTube: https://www.youtube.com/c/InvestwithSvenCarlinPhD

What is the best stock market investment strategy to deploy money is the ultimate question to be answered, if you have money of course. Most people think about whether to deploy it all immediately (LUMP SUM INVESTING) or to stage the purchases over a period of time (DOLLAR COST AVERAGING). Vanguard and other research shows that you'll do better with a lump-sum investment in 70% of cases and better with dollar cost averaging in 30% of cases. So, it is up to you what kind of odds do you wish to bet on. However, you know I will not give you just the stock market investing statistics. By discussing the difference between investing and speculating; the difference between lump sum investing where you invest when you have the money and when a financial instrument fits your required return and dollar cost averaging, where you are more concerned about the market as you try to time it we will also touch on what really matters for the long-term. Another point is discussing the importance of buying the bottom in the market - some stocks are up 50% since March 22, but how much does that change their investment quality? You'll be surprised how important it is! The importance of timing the market will also give you the answer when it comes to investing it all in a lump-sum or dollar cost average over time. Want to know more about what I do? https://goo.gl/MQG2k5 Full-time independent stock market analyst and researcher! STOCK MARKET RESEARCH PLATFORM (analysis, stocks to buy, model portfolio) Stock Ideas and Analyses for The Small Investor: https://goo.gl/GdKEoe I am also a book author: Modern Value Investing book: https://amzn.to/2lvfH3t More at the Sven Carlin blog: https://svencarlin.com/ Check out Modern Value Investing YouTube: https://www.youtube.com/c/InvestwithSvenCarlinPhD

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Dollar Cost Averaging vs. Lump Sum Investing Strategy!

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This episode is 16 minutes long.

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This episode was published on September 21, 2020.

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What is the best stock market investment strategy to deploy money is the ultimate question to be answered, if you have money of course. Most people think about whether to deploy it all immediately (LUMP SUM INVESTING) or to stage the purchases over...

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