Williams, Richard E.; Bacon, Peter W.
April 1993
Journal of Financial Planning;Apr93, Vol. 6 Issue 2, p64
Academic Journal
This article compares the annualized returns from various dollar-cost averaging strategies with those produced by lump-sum investing from 1926 to 1991. For all time periods and averaging strategies investigated, lump-sum investing produced superior returns to dollar-cost averaging, and in all but one instance, the differences were significant at the .005 level. Based on these results, financial planners should advise clients wishing to make sizable cash investments in the market to invest as soon as possible. Dollar-cost averaging is unlikely to produce superior results to lump-sum investing.


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