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Old 09-02-2020, 07:17 PM   #14
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Join Date: Nov 2016
Posts: 3,275
When youíre dollar cost averaging, thatís not necessarily the case. It depends on how the downslope compares to the upslope and the relative contribution of dividends along the way.

For example, if the correction starts tomorrow, takes 2 months to bottom out, stays at the bottom for 2 months, then starts climbing out, and finishes its climb out over 9 months, youíre going to be better off dollar cost averaging right through all of that than dollar cost averaging after the correction (as the climb out starts). Yes, this seems counterintuitive, but itís how the math works. Try running a scenario like that with ~1.5% net dividends and youíll see what I mean.
But if buy every quarter ? Or semi annually? Still better do DCA?
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