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MONEY SENSE.(dollar cost averaging)(Brief Article)(Statistical Data Included)

Dollar Cost Averaging Can Reduce Effect of Volatile Markets

People often delay investing because they fear acting at just the wrong moment, when the markets are spiking and prices are high, for instance, or the market is down and prices are dropping. Investing gradually can be an effective way to overcome the uncertainty about whether or when to invest.

Many investors reduce the effects of market volatility by investing at regular intervals using a technique called dollar cost averaging. Dollar cost averaging is a time-tested strategy that has the potential to help you earn attractive risk-adjusted rates of return.

How Dollar Cost Averaging Works

Dollar cost ...

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