The Long Term Investor

Discussion in 'Investing' started by WXYZ, Oct 2, 2018.

  1. WXYZ

    WXYZ Well-Known Member

    Joined:
    Oct 2, 2018
    Messages:
    20,854
    Likes Received:
    6,516
  2. WXYZ

    WXYZ Well-Known Member

    Joined:
    Oct 2, 2018
    Messages:
    20,854
    Likes Received:
    6,516
  3. WXYZ

    WXYZ Well-Known Member

    Joined:
    Oct 2, 2018
    Messages:
    20,854
    Likes Received:
    6,516
    YES....I remain FULLY invested for the long term as usual. RIDING THE WAVE. Sometimes I am becalmed and sometimes I am being caught up in a whirlpool or rip tide.....but I just hang on for the long term gains and the BIG COMPOUNDING that will come as a result.

    I invest according to.....PROBABILITY.....and.....REALITY. The Academic research tells me that what I am doing and not doing.....WILL over time lead to the best returns and success.
     
  4. WXYZ

    WXYZ Well-Known Member

    Joined:
    Oct 2, 2018
    Messages:
    20,854
    Likes Received:
    6,516
    Time to sit and let the markets MATURE Into the day.

    As usual as a long term investor...I an doing....NOTHING.
     
  5. WXYZ

    WXYZ Well-Known Member

    Joined:
    Oct 2, 2018
    Messages:
    20,854
    Likes Received:
    6,516
    I am an.....all in all at once investor. This is where the PROBABILITY is and ALL the academic research supports this. If I have money to invest....I put it ALL to work right away. I DO NOT wait for some mythical entry point or for a market drop.

    AI tells me:

    "Statistically, going all-in at once (lump-sum investing) does beat dollar-cost averaging (DCA) roughly 66% to 75% of the time. Because the stock market trends upward over long periods, leaving your money in cash while you wait to invest pieces of it means missing out on potential market growth.

    The Math Behind Lump-Sum Investing

    • Time in the market: Money invested earlier has a longer runway to compound and grow.
    • Upward market bias: Major indices like the S&P 500 post positive returns in about 7 out of every 10 years, penalizing cash sitting on the sidelines.
    • Historical outperformance: Studies from financial institutions like Vanguard show lump-sum investing beats a 12-month DCA schedule by an average of 1% to 2%.

    Why People Still Use Dollar-Cost Averaging

    • Lower emotional stress: Spreading out purchases cuts down on "regret risk" if the market drops immediately after you invest.
    • Behavioral safety net: For anxious or first-time investors, DCA prevents panic-selling by easing into market volatility.
    • Practical reality: DCA is the default method when investing regular portions of a paycheck rather than managing a sudden cash windfall."
     
  6. WXYZ

    WXYZ Well-Known Member

    Joined:
    Oct 2, 2018
    Messages:
    20,854
    Likes Received:
    6,516
  7. WXYZ

    WXYZ Well-Known Member

    Joined:
    Oct 2, 2018
    Messages:
    20,854
    Likes Received:
    6,516
    HEY EVERYONE......please check in at our new home:

    stocksforums.com

    YES.....YOU can sign up there and become a poster.....PLEASE join us.
     

Share This Page