 Quote:
Originally Posted by megacorp-firee
I can't remember where on this board it was stated, but it was a quote that went along the lines of, missing the top x number of up market days and you will miss out on the majority of the upswings that will make your portfolio grow.
I have also seen statistics on yty growth of mutual funds versus investors actual growth rates. The latter is less than the former due to investors buying and selling at the wrong times.
So my leaning is to get fully invested (lump sum) if I am moving money around in my portfolio. Of course I DCA'ed when I was w*rking with monthly contributions to my 401K and taxable accounts. but it was more of a 'forced DCA' since i was paid on a semi-monthly basis.
If I received an inheritance, I would most probably lump sum invest it to keep my AA in line.
|
Malkiel cites a study done by Charles Ellis that shows that between 1982 and 2000, if an investor missed the best 30 days of the market the return on an investment in the S&P500 would be 11.2% rather than 18%. Meaning that you can't tell when the best days of the market will be so trying to time the bottom often doesn't get the desired result.
--Rita
__________________
Only got A dimple, would have preferred 2!
|