Debunking the Myth of Dollar Cost Averaging

from blog Alex Molas Blog, | ↗ original
Investing your money wisely is crucial for financial success. In this post, I delve into the popular strategy of dollar cost averaging (DCA) and compare it to the lump sum (LS) approach. By analyzing S&P 500 data from the past 40 years, I show that DCA is generally suboptimal, with LS outperforming it in 82% of cases, resulting in a 23% higher...