Search found 332 matches

by ValuationsMatter
Thu Jul 09, 2020 4:01 am
Forum: Investing - Theory, News & General
Topic: Study claims active management better than benchmarks
Replies: 30
Views: 3215

Re: Study claims active management better than benchmarks

It used to be the case that active "managers" were the market. However, I suspect that individual active investors are a much larger proportion of the market, now. Whenever there's a fish at the table, you should play.
by ValuationsMatter
Thu Jul 02, 2020 12:05 pm
Forum: Investing - Theory, News & General
Topic: How to analyze having a paid-off mortgage in retirement?
Replies: 104
Views: 6495

Re: How to analyze having a paid-off mortgage in retirement?

We're all faced with the insecurity in our future. Sure, there are some trust-fund babies, but even they have no idea, when young, if they're going to be alive in 4+ decades. For those of us, the vast majority, who face the risk of not possessing any wealth in retirement, we are taking financial ris...
by ValuationsMatter
Thu Jul 02, 2020 10:17 am
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

I have a lot of reading to catch up on in this thread, and I do actually intend to read all of the posted scholarly articles. The thing is, I know for statistical fact that DCAing reduces the effect of the daily swings from the average price of purchase. When we are having 3-12% daily swings like ba...
by ValuationsMatter
Mon Jun 29, 2020 10:35 am
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

Unless you're doing this for personal enjoyment, there are probably better ways to spend your time. Yes. Personal enjoyment (I'm a nerd) & self-education. I'd be interested to know your thoughts on which timing strategies you believe are promising. Perhaps you can link to any previous posts you've ...
by ValuationsMatter
Sun Jun 28, 2020 5:22 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

But now you have a problem: this is definitely market timing. Market timing isn't supposed to be possible, so clearly the market is really inefficient or there is something we missed that prevents this from working. Probably the latter. That's actually not a problem for me. Markets are inefficient....
by ValuationsMatter
Sun Jun 28, 2020 11:40 am
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

Very nice post, Beehave. Uncorrelated, you've stressed the importance of i.i.d. in your posts, sometimes several times within the same post. I'm almost certain the market is not i.i.d. Aren't you? We often model things with simplifying assumptions so that we may gain insight or intuition, even when ...
by ValuationsMatter
Sat Jun 27, 2020 8:00 am
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

Your reference says DCA is bad because glide paths are bad and Target Date Funds suck. . Given that this is all the document says in 12.4.2 why don't you successfully defend that position first before demanding we accept the conclusion? "12.4 Target Date: Ineffectiveness of glide path strategies It...
by ValuationsMatter
Fri Jun 26, 2020 11:18 pm
Forum: Investing - Theory, News & General
Topic: Disconnect between Stock prices and profits:Interesting Reading
Replies: 9
Views: 1249

Re: Disconnect between Stock prices and profits:Interesting Reading

The real question is what to do with money. There's got to be something better than treasuries. Seems like you can be absolutely right in predicting a collapse, except that the fed can step in and print their way out of anything. Holding cash when it can be so easily debased is far from a guarantee ...
by ValuationsMatter
Mon Jun 22, 2020 9:07 am
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

I loosely agree with that interpretation. However, the point of the thread is more so related to the question of what to do with a large lump sum, such as an inheritance. I can also see it with Uncorrelated's perspective. If you're immediately investing all of the money you have available to invest...
by ValuationsMatter
Mon Jun 22, 2020 8:21 am
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

I loosely agree with that interpretation. However, the point of the thread is more so related to the question of what to do with a large lump sum, such as an inheritance. I can also see it with Uncorrelated's perspective. If you're immediately investing all of the money you have available to invest,...
by ValuationsMatter
Sun Jun 21, 2020 10:42 am
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

No, that would defeat the purpose. Bonds are not a confounding factor. Bonds are THE factor why dca makes no sense. DCA can be described as a period where you desire to reduce volatility for some reason followed by a period of full investment . His position stated you can construct a constant alloc...
by ValuationsMatter
Sat Jun 20, 2020 10:32 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

First you have to remember that EV doesn't mean results are better. Whoa! lol. No kidding, man. And here I thought I was the only one (not really, but kinda) trying to say that. I have utterly no doubt that LS wins vs. DCA in this regard (EV), but I couldn't agree more than with the above. EV isn't...
by ValuationsMatter
Sat Jun 20, 2020 9:36 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

tadamsmar wrote:
Sat Jun 20, 2020 7:56 pm
You seem to be admitting that you are just on this forum to engage in name-calling and insults and not actually discuss the issues.
Again, no.
by ValuationsMatter
Sat Jun 20, 2020 6:47 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

Person B can sell and Dca back in to achieve identical results as Person A who dca, but they don't. That's the whole point of the argument. The argument in OP isn't dca doesn't reduce variance. Yes, I'm with you on that. However, I was responding to a specific point made that targeted variance. It ...
by ValuationsMatter
Sat Jun 20, 2020 5:48 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

On average DCA loses to LS...over the long haul this will mean underperformance if you keep doing it. We all accept this. This doesn’t mean that there aren’t valid reasons to do it for certain scenarios. On average DCA selling out and DCAing back in loses to LS staying the course ...over the long h...
by ValuationsMatter
Fri Jun 19, 2020 10:37 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

Beehave maybe wrote? wrote:
Fri Jun 19, 2020 9:41 pm
I appreciate your comments - - but please correct the words "Beehave wrote" at the beginning!
lmao! My apologies. fixt
by ValuationsMatter
Fri Jun 19, 2020 8:41 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

No, I guess you've got me there. LSing out just to DCA doesn't ever make sense just for the sake of volatility. I get the 'fungible' money argument. For that matter SCAing out to LS back in doesn't make sense either from a non market timing approach. I'm not sure if it's because it's because it's a ...
by ValuationsMatter
Fri Jun 19, 2020 6:26 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

the reasons DCA is "bad" are: DCA doesn't do what it is purported to do: reduce risk in a meaningful way . Sure, it reduces risk temporarily to the extent you are temporarily out of the market but that is hardly an earth-shattering insight. I use it every day to reduce the risk of sky diving! (spea...
by ValuationsMatter
Fri Jun 19, 2020 1:09 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

Do you believe that is is true that both the best and worst possible outcomes will always come from the the application of a lump sum strategy in a given time period? Thus the result from using DCA will lie somewhere in-between these 2 points, So you are saying LS at the lowest price for a period d...
by ValuationsMatter
Fri Jun 19, 2020 11:00 am
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

You made a model that shows DCA works better. Reduces purchase price variance... Whether that's what someone wants or not is up to them. If all you wanted to do was reduce purchase price variance (and be fully invested at the end of the DCA period) wouldn't the optimal strategy be to make two lump ...
by ValuationsMatter
Fri Jun 19, 2020 10:02 am
Forum: Personal Finance (Not Investing)
Topic: Amex platinum card - $20 streaming and wireless provider credit
Replies: 38
Views: 3338

Re: Amex platinum card - $20 streaming and wireless provider credit

This is the key. What good is an amex platinum if, like most people, one is not traveling? I am happy with this new perk, but something like this will need to be in play next March at my renewal date for me to continue holding this card. I'll tell ya what man, I'm in the Army and figured I'd immedi...
by ValuationsMatter
Fri Jun 19, 2020 9:44 am
Forum: Personal Investments
Topic: USAA to Charles Schwab - not happy
Replies: 43
Views: 3471

Re: USAA to Charles Schwab - not happy

I didn't trust it to be seemless. So, I liquidated the small amount I held in my USAA brokerage, closed the account, and opened a Schwab account on my own. I set it up only to convert AMEX points, and continue to keep it for that reason only. I've found the same issue you have. Their money market ER...
by ValuationsMatter
Thu Jun 18, 2020 6:04 pm
Forum: Personal Consumer Issues
Topic: Old Cars & the expenses that go with them
Replies: 69
Views: 5174

Re: Old Cars & the expenses that go with them

Some pretty good stuff in this thread. I can't justify repairing something that would actually cost more than you could buy the same vehicle in excellent condition with less miles on it for. However, that just doesn't come along very often. Most people think new parts for repairs + pro labor... that...
by ValuationsMatter
Thu Jun 18, 2020 5:46 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

The point is sell prices and buy prices are arbitrary to a buy and hold investor. They just reflect whatever the price is right now. Today I can create a new sell prices and buy prices if I so desire. So yes if you choose to have exactly one entry point and one exit point your sample size of buying...
by ValuationsMatter
Thu Jun 18, 2020 4:56 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

Let me back up and say that I am not taking a position on whether one should choose variance reduction over the extra EV in the market. That's an assessment that is personal. Arguably we do that anytime we pick an AA that isn't 100/0 correct? Yes, I think that's a fair assessment for most of us. I'...
by ValuationsMatter
Thu Jun 18, 2020 4:53 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

Well clearly you don't since the model you put forward has a non-independent distribution of returns. False. The daily "stock price" is independent of previous days in my model. There is no expected return. Not sure what you want from me. Nothing, brother. Just discussion. I'm an extremely analytic...
by ValuationsMatter
Thu Jun 18, 2020 3:39 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

Oh, we're back to that... No, that's irrational because selling incurs the very variance one seeks to avoid. By selling, you introduce selling price variance. You can mitigate sell price variance by share cost averaging (not sure if there's a better name) out. Alright fine. Then what is the optimal...
by ValuationsMatter
Thu Jun 18, 2020 12:28 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

Steve Reading wrote:
Thu Jun 18, 2020 9:59 am
The problem is that the final price of the index isn't independent of the past prices. The returns might be independent, but not the prices. And that makes all of the difference.
I really don't think the returns are independent, either.
by ValuationsMatter
Thu Jun 18, 2020 12:24 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

Oh, we're back to that... No, that's irrational because selling incurs the very variance one seeks to avoid. By selling, you introduce selling price variance. You can mitigate sell price variance by share cost averaging (not sure if there's a better name) out. Also, why should an investor want to l...
by ValuationsMatter
Thu Jun 18, 2020 12:12 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

Oh, we're back to that... No, that's irrational because selling incurs the very variance one seeks to avoid. By selling, you introduce selling price variance. You can mitigate sell price variance by share cost averaging (not sure if there's a better name) out. If the stock goes from 100 to 95, by h...
by ValuationsMatter
Thu Jun 18, 2020 12:03 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

Also, why should an investor want to lower purchase price variance? What is gained by trying to do this? Because that would improve returns if prices were independent and random. That's actually false. I will caveat to say that it is typically true that in the market we see assets with higher risk ...
by ValuationsMatter
Thu Jun 18, 2020 9:38 am
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

Oh, we're back to that... No, that's irrational because selling incurs the very variance one seeks to avoid. By selling, you introduce selling price variance. You can mitigate sell price variance by share cost averaging (not sure if there's a better name) out.
by ValuationsMatter
Thu Jun 18, 2020 9:24 am
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

It follows then, that if reducing purchase price variance is a rational purpose, then there is a rational basis to DCA. So, the question becomes: Is reducing purchase price variance a rational purpose? When you can create as many buy points as you want by clicking sell ??? I'm a dunce. What does th...
by ValuationsMatter
Thu Jun 18, 2020 7:47 am
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

I still think irrationality argument is highly questionable. People espouse the logic of the OP, but I see no sound logical argument here. Guys, upon further reflection, there's nothing wrong with the math which demonstrates the reduction in volatility inherent in DCA as opposed to lump sum. It is s...
by ValuationsMatter
Wed Jun 17, 2020 4:03 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

Can we just call DCA what it really is? It is one method for rebalancing to achieve a target asset allocation. Other methods for rebalancing include: .1. LS (lump summing in immediately) .2. Rebalancing once per fixed period of time (e.g., every six months) .3. Rebalancing based on set percentage t...
by ValuationsMatter
Wed Jun 17, 2020 3:06 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

DCA wasn't worse in 2008. DCA is better 1/3 of the time. The fact that it's mathematically worse on average is immaterial if all you care about is avoiding severe left tail scenarios within a short time horizon. His assertion, backed by the reference provided, is that there exists some optimal fixe...
by ValuationsMatter
Wed Jun 17, 2020 12:41 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

I see the problem. But it's hard to explain so I'll do my best. I can't do this this week, but I will revisit and rebuild this model when I can. Please reread/rethink how I set up the model. You misunderstood a few things, I think, or I misunderstood what you meant when you were representing the mo...
by ValuationsMatter
Wed Jun 17, 2020 10:14 am
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

Can you link what you're referring to?
Thanks.
This thread, same page (page 8), my post with timestamp: Tue Jun 16, 2020 1:31 pm.
by ValuationsMatter
Wed Jun 17, 2020 9:54 am
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

Tldr. If I hypothetically have 423k from the sale of a rental property, should I lump sum or dca? Investment would be total world (vtwax) My ips says to lump sum... But I have hypothetically never been in this situation before You should make your own decision. Informing yourself will help. That ta...
by ValuationsMatter
Wed Jun 17, 2020 8:49 am
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

Ok, let me think about that. One point you still haven't confirmed or refuted, and thus still haven't appropriately addressed in my view, is that the DCA/SCA investor did indeed improve the volatility of his ending portfolio balance by mitigating the variance of the mean purchase/sale prices. I thin...
by ValuationsMatter
Wed Jun 17, 2020 7:45 am
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

Thanks for the recap, though I did it read all of them. No, I said it correctly. Also, lower variance alone regardless of EV can be a rational goal and therefore a valid position to take. That said, I made that comment implicitly accepting the premise of the article that equal proportion of equities...
by ValuationsMatter
Tue Jun 16, 2020 7:00 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

I'm just curious, as it was not an easy read for me, how many of those of you who have read it actually understand it? Not every word. But enough to note the comments about a "minimax regret" (aka "minimize the largest amount of regret") strategy. DCA is often suggested to new investors precisely f...
by ValuationsMatter
Tue Jun 16, 2020 6:57 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

There is a mathematical proof in An Introduction to Computational Finance Without Agonizing Pain , page, 119, Theorem 1 (Ineffectiveness of Glide Path Strategies). Basically the theory states that is always possible to construct a constant allocation (i.e. lump sum) investment strategy that has the...
by ValuationsMatter
Tue Jun 16, 2020 6:03 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34245

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]

I feel like reading and absorbing the contents of the 1979 paper Bertilak posted about would really help the proponents of Dollar Cost Averaging. It's worth your time, really: A Note on the Suboptimality of Dollar-Cost Averaging as an Investment Policy I actually took non-linear optimization in gra...