Time to cut our loses?

InvesterJones

adindas said:

This is for a person who do not use their sensible approach because just blindly listen to the headline that Lump sum will outperform the DCA even during the bear market.

I have been saying this for many months that DCA will normally outperform lump-sum during the bear market.

I also show the research showing that DCA will normally beat lump-sum in the bear market.

In a six month bull market, lump sum will beat DCA if invested at the start of the six months.

In a six month bear market, lump sum will beat DCA if invested at the end of the six months, unless the unlikely situation occurs where dividend yields are higher than valuation falls, in which case lump sum will beat DCA when invested at the start.

In a changeable market it's impossible to call since it's not possible to know when the inflection point is, so rather than worry about it, DCA takes the decision out of your hands which might help you sleep better - which is probably a pretty high value thing to most people

adindas

InvesterJones said:

adindas said:

This is for a person who do not use their sensible approach because just blindly listen to the headline that Lump sum will outperform the DCA even during the bear market.

I have been saying this for many months that DCA will normally outperform lump-sum during the bear market.

I also show the research showing that DCA will normally beat lump-sum in the bear market.

In a six month bull market, lump sum will beat DCA if invested at the start of the six months.

In a six month bear market, lump sum will beat DCA if invested at the end of the six months, unless the unlikely situation occurs where dividend yields are higher than valuation falls, in which case lump sum will beat DCA when invested at the start.

In a changeable market it's impossible to call since it's not possible to know when the inflection point is, so rather than worry about it, DCA takes the decision out of your hands which might help you sleep better - which is probably a pretty high value thing to most people

Did you observe the graphics that I presented before. Those who do not use common sense just blindly throw their lump sum money all pension they have £200k (say) in the bear market and forget; in the unfortunate situation they will need to wait more than 15yr+ before seeing a single penny profit. In very unfortunate situation, it could be 20yr+. Well for a pensioner you might not need that money any longer after 20 yrs. In my previous post in other thread I also showing the research proving that in the bear market DCA will beat lump sump. But you do not actually need a research for those who understand what the bear market it.

Keep in Mind the bear market is a period that could take 10 to 61 months. Because it is a period you do not need to be so accurate to know a specific date.

You might not be in this situation but someone might who blindly listen to the headline. Do not time the market, throw all money you have in one go and forget, even we are in the bear market. Well dead money ...

You will never be in this institution by DCA ing  during the period of the bear market. 3-5 year like "Eyeful" example for instance in the above post.