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Dollar Cost Averaging

Dollar Cost Averaging


A Strategy for Volatile Markets

The only certainty in securities markets is that they fluctuate.  A rising market may create a euphoric mood; a falling market can lead to gloomy headlines that discourage investors.  With dollar-cost averaging, you can take advantage of the very moves that freeze others with indecision.  It’s an investment strategy that’s made for uncertain markets.

One Simple Concept, One Disciplined Strategy

Dollar-cost averaging works as well for beginners as it does for experienced investors.  It is simple concept that’s summed up in a few words: Invest the same amount of money at regular intervals, regardless of market moves.

  • It tends to lower the average cost of your investments.  
  • It’s a disciplined strategy.  Dollar-cost averaging imposes discipline because you keep investing the same dollar amount every month, no matter what happens in the market.  It removes the temptation to stay out of the market when conditions are uncertain or volatile.  In fact, dollar-cost averaging works best in volatile markets
  • It eliminates the temptation to try market timing.

It’s important to remember that no strategy is perfect.  Dollar-cost averaging will not guarantee you a profit or protect you against a loss if you must sell your investment when prices are down.

*This investment strategy” is subject to the appropriate investment objectives and risk tolerance and may not be suitable for all Clients. The Client should contact their Advisor to discuss their investment decisions*


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