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Originally Posted by Xenophon
Actually, I've done that analysis. The scheme I was recommending is certainly not completely resilient in the face of a 20-year bear market, but it comes close. You need to consider a few things to understand this:
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It's called dollar cost averaging.
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Originally Posted by Wikipedia
Dollar cost averaging is the practice of investing a fixed dollar amount at regular intervals (such as monthly) in a particular investment or portfolio, regardless of its share price. In this way, more shares are purchased when prices are low and fewer shares are bought when prices are high. Dollar cost averaging is also called DCA and constant dollar plan in the US, pound-cost averaging in the UK, and by the currency-neutral term cost average effect.
Some financial advisors such as Suze Orman claim that DCA reduces exposure to risk associated with making a single large purchase.
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It's a well know and effective investing stratagy.