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Dollar-cost averaging vs. buying every 5% dip in $SPY

min read

Would it be more reasonable to wait until there is a dip and only buy then? Here we compare the 2 strategies.

It's reasonable to save some money every month and put that into stocks, you may be doing that in the retirement account already. Would it be more reasonable to wait until there is a dip and only buy then? Here we compare the 2 strategies:

  • Dollar-cost averaging: every month buying $1,000 worth of $SPY
  • Every month saving $1,000 and then buying every 5%+ dip in $SPY with ALL money saved
Buying Every 5% Dip Strategy Setup

The results of doing that consistently since 2012 are below:

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