DCA

I suggest we simplify the comparison of DCA and LS by saying that for the purpose of discussion the DCA is applied to a portfolio that has two asset classes: money market fund and equity market index with a beta of 1.0.

Safe Investing, Arnold Kling | EconLog | Library of Economics and Liberty 2009

DCA is by definition the strategy for us working stiffs with 401ks.

Safe Investing, Arnold Kling | EconLog | Library of Economics and Liberty 2009

And the average payout from DCA is 4000 less than LS, so you don't even make out there.

Safe Investing, Arnold Kling | EconLog | Library of Economics and Liberty 2009

The Williams, Bacon report you linked shows that the standard deviation of DCA is lower.

Safe Investing, Arnold Kling | EconLog | Library of Economics and Liberty 2009

It looks like DCA is being explained to the public the wrong way.

Safe Investing, Arnold Kling | EconLog | Library of Economics and Liberty 2009

You can't time the market, so DCA is a way to hedge, to make sure that SOME of your investments are well timed.

Safe Investing, Arnold Kling | EconLog | Library of Economics and Liberty 2009

The record low maximum temperature for the day at DCA is 56 (from 1988) - probably safe but it may be close.

Forecast: Wet, unseasonably cool start to week Jason Samenow 2010

DCA is a legitimate way to avoid certain investment mistakes.

Safe Investing, Arnold Kling | EconLog | Library of Economics and Liberty 2009

The power of DCA is when the market goes up, you make A LOT of money, and if the market goes down, you lower your ACB, helping you when the market goes up again.

Safe Investing, Arnold Kling | EconLog | Library of Economics and Liberty 2009

For a given average investment, DCA is riskier than the lump sum approach.

Safe Investing, Arnold Kling | EconLog | Library of Economics and Liberty 2009