QUOTE(IvanWong1989 @ Jul 25 2015, 07:17 PM)
Sifu sifu I have a question.
Lump sum investing vs dollar cost averaging
Most article assumes that at the start you've had a big lump sum cash and then we choose to DCA or not. Their research says that lump sum gives better returns over DCA 2 th
But how about youve got no lump sum cash now?
if I choose to lump sum. Meand ill accumulate cash overtime In savings account. And when market ngam ngam. Then lump sum invest in?
If you happen to invest lump sum during bear market, you are going to get good return. But how do you know when the next bear market will come?
I tell you one story:
In 2008, before GE 12, when the Parliament was dissolved, market was down.
People were expecting the same thing to happen before GE13. Some exited the market as early as 2012. But the Parliament was only dissolved in April 2013, and yet there was no major correction.
Major correction only happened last year.
If you were one who exited the market in 2012, what would you miss?