No. of Recommendations: 3
<<I told you guys. A wise man once said, wait for a real uptick before you buy. You will miss the bottom but still come out ahead.
I also told you guys, bear markets have violent but brief rallies. Again, something someone (don't remember who) posted on shrewd/fool and stuck with me.>>
If you are wise enough to differentiate between a "real" uptick versus a bear market violent but briefly rally, you are all set! Congratulations!
However, if you are not wise enough, you have 2 options. Rely on Jim to tell you when to buy, or dollar cost average.
Compound interest is often praised as the eigth wonder of the world. I think DCA falls into the same league and also deserves similar high praise, at least from the perspective of an average investor. It's easy to understand but surprisingly hard to implement since it requires a great deal of patience and discipline which most investors don't have. I remember div20 used to say on the Fool boards - DCA, sleep well, enjoy life - and I think it's a sound strategy. It may not give you the best result, but you are assured of a good result over sufficiently long periods.
For example, if you religiously DCA weekly between now and the end of the Trump presidency, the average purchase price will most likely be good. Or you could halve the DCA period to between now and the mid-terms, the assumption being more things of consequence will happen in the first half.
