Part 6/9:
The speaker presents a comparison of a lump-sum investment of $5,000 in the S&P 500 made in 2006 against a monthly contribution strategy. The lump sum would have grown without additional contributions, but the dollar cost averaging strategy resulted in similar returns with less psychological distress during market drawdowns.
Furthermore, if the lump-sum investment had been timed to the market's 25% correction, it not only provided a superior outcome but also enhanced the annualized return significantly. The revamping of investment timing and strategy could lead to a 9.48% annualized return; combined with prudent leverage, this could further elevate returns to an extraordinary 18.96%.