Dollar Cost Averaging investment - Tom Miele

Knowing the exact best time to invest involves being really good at what’s called “market timing”.

If you get things correct and you begin investing at or near market lows, you can win big.

On the other hand, what if the markets never see a big pull back but instead move even higher? Well then investors sitting on cash would be missing out on potential capital appreciation.

We saw the latter happen coming out of the 2008 recession. Some investors remained in cash for too long, waiting for a market pullback that never came and as a result missed out on significant capital appreciation.

So for this reason we typically recommend an investment process known as “dollar cost averaging”. This means that the investor commits to investing a fixed amount of capital each month over the next 6 - 12 months.

What I really like about dollar cost averaging is that by committing to invest a fixed amount of capital on a pre-agreed date over time, it takes the emotion out of the investment process.

Dollar cost averaging is a very disciplined approach that usually leads to better outcomes on overall performance and gains for our clients at Bernstein.

Tom Miele — Wealth Advisor at Bernstein

Ignorance is a choice. Here is a list with the most popular news websites:

Yahoo! News Google News HuffingtonPost CNN New York Times De Telegraaf NBC News Mail Online Washington Post The Guardian WSJ ABCNews BBC News USA Today LA Times De Volkskrant Le Monde Le Figaro

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Point of View

Point of View

A point of view is the angle of considering things. It’s a platform for people with a vision and a story to tell.

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