Q: When people compare investing a lump sum to dollar cost averaging to market timing they usually trot out long term averages showing lump sum is better. Doesn’t context matter? Valuations are currently elevated. If they ran the comparisons after eliminating the years when valuations were at or below some long term average would the answer change?
How would you approach this question in today’s market context.
Appreciate you get a version of this question regularly but I’d like your answer for today. Thanks!
How would you approach this question in today’s market context.
Appreciate you get a version of this question regularly but I’d like your answer for today. Thanks!
5i Research Answer:
Part of the surprising point of the lump sum excercise is that valuations don't really matter in...