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Archive for 'DRIPS'

Mathematical Illusion: Why Dollar-Cost Averaging Does Not Work

Mathematical Illusion: Why Dollar-Cost Averaging Does Not Work
by John G. Greenhut, Ph.D.

Executive Summary

In spite of the weight of evidence provided in academic literature against the strategy of dollar-cost averaging, DCA continues to be practiced by investors and recommended by financial advisors.
Beyond its psychological appeal, the popularity of the approach can be [...]