Part 5/8:
This is a critical insight: knowing the market is in a downturn does not provide a guaranteed advantage for DCA. For instance, even when the decision is made post a significant market drop, lump sums still yield favorable outcomes on average.
Choosing the Right Strategy
The conversation regarding how to invest effectively evolves when factoring in market conditions, such as high stock valuations. Historic analysis reveals that lump sum investing remained advantageous even when market valuations peaked.