Should You Dollar Cost Average or Lump-Sum Invest?
by Sam Stovall
As of February 17, 2012, the S&P 500 index has risen more than 23% off of its October 3, 2011, closing low.
Some investors, who were convinced that history would not repeat itself by seeing the “500” advance 23% in the six months after concluding a near-miss or baby-bear market, still have a lot of money on the sidelines. They are probably now asking themselves, “Should I throw in the towel and invest it all, or put my money back to work gradually since the market may correct any day now?” This dilemma is timeless for investors, who are basically asking if they should dollar cost average (invest a fixed amount at equal intervals) or lump-sum invest. The co
...To continue reading this article you must be registered with AAII.
Already registered with AAII? Login to read the rest of this article.
to read this article and receive access to future AAII.com articles.