Stocks: “Experts recommend this investing strategy when the market is volatile”
August 22, 2019
“…Dollar-cost averaging is a strategy in which people invest the same amount of money at regular intervals (say, each pay period). It ensures that investors aren’t just responding to their emotions by selling high and buying low. Instead, they contribute the same amount of money no matter what prices stocks are listed at.
“Investing in the S&P over the last 20 years produced an annualized return of 7.2%, but missing just the top 10 days in those 20 years cuts the return in half, to 3.5%,” writes CNBC “On-Air Stocks” editor Bob Pisani. Dollar-cost averaging means investors aren’t missing out on those top 10 days if they get spooked during a downturn…”