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A unique twist to the conventional dollar cost averaging strategy involves investing only after a significant market decline. The speaker emphasizes waiting for a dip of at least 25% from the previous market highs before making an entry. For instance, when the Russell 2000 Index, which includes 2,000 smaller U.S. companies, recently dipped by over 25%, an investment opportunity arose at a significantly reduced price.
To further enhance returns, the strategy includes making additional purchases after each subsequent 10% decline from the last entry point. This approach adjusts entry points more favorably compared to regular dollar cost averaging and minimizes overall risk by buying assets during low points in the market cycle.