It's a Great Time For Dollar-Cost Averaging
It’s easy to see why some investors may hesitate to continue investing after dealing with stock market volatility, inflation, and reported layoffs.
However, “playing it safe” or trying to time the market can be even more difficult to deal with for investors.
Instead, there’s an alternative strategy that may be beneficial for investors at all levels. Dollar-cost averaging.
What is dollar-cost averaging?
Consistently putting money into the same investment over a period of time, you’re able to buy more during the dips and buy less when prices are high — helping to level things out and may reduce risk amongst volatility. Sitting on the sidelines ensures that you will miss buying during the dips, which may impede your ability to grow your portfolio to meet your financial goals. And trying to time the market is a guessing game at best. The 10 best days over the past 20 years happened after big declines during the 2008 financial crisis or the pullback in 2020.
Take control of the things you can control and work to remove the emotion from investing.
Stil have questions?
Contact us today to discuss!