Market Timing vs. Dollar-Cost Averaging: Why Consistent ETF Investing Wins
Investors often hesitate at market peaks, waiting for pullbacks that may never come. J.P. Morgan research reveals stocks hit all-time highs on 7% of trading days, with one-third establishing permanent floors. Missing just 10 best days over two decades can halve portfolio returns.
Dollar-cost averaging emerges as the antidote to timing anxiety. By investing fixed amounts at regular intervals—say $1,000 monthly—ETFs can compound $3M-$5.5M over 30 years at 12%-15% annual returns. Vanguard's low-cost funds exemplify this set-and-forget strategy.