Since a lot of us here have expressed interest in not starving to death in a gutter, I figured I'd start a weekly thread to discuss financial matters.
Ground Rules
- Remember that we're all just Internet randos. Don't bet your life savings on a hot tip from this thread.
- Keep culture war in the culture war thread. Yes, global events may impact our personal finances, but that does not mean we have to incessantly harp on culture war aspects here. If you are going to discuss it, please stick to the practical impacts of it on an individual level.
- Be kind. Remember that everyone here comes from different circumstances. We all have different resources available and different risk tolerances.
- Don't let the perfect be the enemy of the good. Better is better. Celebrate people when they take a step up and work to move their finances in the right direction. Don't flame out because they haven't followed what you consider the optimal path. Everybody has to start somewhere.
Jump in the discussion.
No email address required.
Notes -
This isn't true - he's buying at the bottom between every pair of ATHs.
The point isn't that this is the best you can do with perfect information - the point is that even if you time each trough perfectly you still usually lose to DCA. More complicated strategies can beat DCA, but they are even harder to get right.
Both things can be true. For example:
and
The algorithm he followed wasn't looking for that, but it happened anyways.
The blog post could've fooled me. Between the implication that DCA is generally unbeatable and his talks about market timing in general, I'd expect it to do more than shoot down an obviously-flawed strategy while covering up its flaws.
My strategy ("skip the bubbles"? idk a good name) also matches opt-out's post better than buy-the-dip does, as buy-the-dip always buys one wobble before the stock's bubble bursts.
More options
Context Copy link
More options
Context Copy link