OFFICIAL STOCK MARKET AND ECONOMY THREAD VOL. A NEW CHAPTER

Its earnings season so taking profits and pumping markets. Next week another rate hike, then GDP numbers will be released and back down we go.
 
You can be DCAing into quality - no issue with that

Bought a little GOOGL on the split to DCA the 1 share I had, holding money on the side in case it gets lower to continue to DCA. After that I'll let those shares ride into the sunset.
 
My whole investing thesis on GAN was that they would one day sue for patent infringement. That’s currently happening with their suit against MGM. Even if they win this suit I still have a long way to break even. I do not recommend owning this stock but interesting action and much needed relief for my portfolio these past three days. Hopefully MGM buys them out or something.

PENN rebounding nice too. Canadian market showing strength. Hopefully this sector found a bottom.
 
  • New research looked at rolling 10-year returns on $1 million starting in 1950, and compared results between an immediate lump-sum investment and dollar-cost averaging.
  • Assuming a 100% stock portfolio, the return on lump-sum investing outperformed 75% of the time.
  • For portfolios with 100% bonds, that rate of outperformance was 90%.
DCA being a sound investment strategy is a myth.
 
  • New research looked at rolling 10-year returns on $1 million starting in 1950, and compared results between an immediate lump-sum investment and dollar-cost averaging.
  • Assuming a 100% stock portfolio, the return on lump-sum investing outperformed 75% of the time.
  • For portfolios with 100% bonds, that rate of outperformance was 90%.
DCA being a sound investment strategy is a myth.

Well I mean DCA has a higher chance of missing the 10 best days of the year which usually are the ones that make or break the year. But then again also have a chance of missing the 10 worst.

What’s the source of this though?
 
  • New research looked at rolling 10-year returns on $1 million starting in 1950, and compared results between an immediate lump-sum investment and dollar-cost averaging.
  • Assuming a 100% stock portfolio, the return on lump-sum investing outperformed 75% of the time.
  • For portfolios with 100% bonds, that rate of outperformance was 90%.
DCA being a sound investment strategy is a myth.

I've seen this as well, however if I was buying SHOP at $1000, you better believe I'm buying more of it at $300. DCA into quality that has tanked.
 
Those particular bullet points are from cnbc but there is plenty of research online regarding this.
 
I've seen this as well, however if I was buying SHOP at $1000, you better believe I'm buying more of it at $300. DCA into quality that has tanked.

Yes it appears to be effective when you have a stock that is in a downtrend, however it only indicates you will lose less money, as opposed to gaining any kind of profit from this strategy. Since the stock market, historically, is in an uptrend 66% of the time, you are twice as likely to have underperformance using DCA.
 
I mean, I can Google almost any stat that can help my argument. DCAing has its benefits and CNBC has sources promoting the use of the strategy as well
 
I mean, I can Google almost any stat that can help my argument. DCAing has its benefits and CNBC has sources promoting the use of the strategy as well

Didn't mean to offend anyone using DCA, just posting relevant info. True it can help in managing risk, as I said it helps you lose less. For the most part its market psychology imo, people lack conviction in their buys so they DCA. If you're right, you leave money on the table, if you're wrong you can potentially have a smaller drawdown depending on how wrong you are lol. Feel free to post the stats that support the other side, its all about staying educated.

Were you the guy applying to Stern? I forgot to send the contact info, my bad

Nah, wasnt me.
 
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