XAO 0.15% 8,674.1 all ordinaries

Short Term Trading Weekend Lounge: 8-10 Feb, page-28

  1. 793 Posts.
    lightbulb Created with Sketch. 32
    Read a very interesting article on MarketWatch entitled something like " The last article you will ever need to read about timing the market".
    The premise was that Dollar Cost Averaging, ( DCA) almost always produced a better long term result than investing further cash funds at each dip. You might at this stage think it is largely because mere mortals quite often don't get the dips correct, but no, there is more. The investor is now given god like ability and has omniscience, so always picks the bottom of the dip correctly. 
    A chart is plotted since around 1930 to 2019 with only 2 lines, one being the returns based on DCA buying the US index regularly every month. The other line is buying the dip perfectly periodically. Since around 1960 until the present, DCA was consistently ahead. And the other problem is that even the smartest investor has no hope of achieving omniscience.

 
watchlist Created with Sketch. Add XAO (ASX) to my watchlist
(20min delay)
Last
8,674.1
Change
12.900(0.15%)
Mkt cap ! n/a
Open High Low
8,661.2 8,682.0 8,661.2
XAO (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.