Every month, I buy some VEQT as part of a dollar cost averaging strategy. It seems, however, that every month my purchase price is higher than the previous month. It keeps going up and up - and I'm getting leery.
I know you can't provide personal advice but, generally speaking, would you continue to proceed in this manner. Or are there other variations of dollar cost averaging in a rising market? Other strategies to consider?
Presumably, one could make a larger purchase up front. But when the funds come from my monthly salary, that's harder to do.
Thanks,
Robert
VEQT is an all-equity portfolio and with markets at record levels it is no surprise the valuation has increased. It is up 11.93% this year. But the whole goal of DCA is consistency and not market timing. If an investor buys the same dollar amount each month, more units will be bought in a decline and less in a rally. But overtime the strategy is nearly fool-proof, given enough time and consistency. But it is the consistency that works. Buying in ALL markets is the best strategy, since timing is impossible. Some investors will adjust their purchases if the market rallies, but of course all this is is market timing. Markets historically rise, and it has been proven that even buying at new highs will work out. We would absolutely not change anything if DCA is part of an investors' strategy.