Experts recommend this investing strategy when the market is volatile

401(K) Plans, Personal İnvesting

Experts recommend this investing strategy when the market is volatile. (via @CNBCMakeIt)

401(K) Plans, Personal İnvesting

8/25/2019

Experts recommend this investing strategy when the market is volatile. (via CNBCMakeIt)

Dollar-cost averaging is a strategy in which people invest the same amount of money at regular intervals. It ensures that investors aren't only selling high and buying low, as emotion might dictate.

individual retirement account each month, you're already following this strategy and benefiting from it. "If you're enrolled in a 401(k) plan at work, don't stop contributing," Janet Alvarez, personal finance expert at Wise Bread and CNBC contributor, tells CNBC Make It . "It's essential to buy stock on the way down, just as you do on the way up." It's especially useful during a market downturn, because while an investor's reaction might be to stop investing until the market starts climbing again so you don't lose money, the better strategy is to buy at the lower price. But it's essentially impossible to time the market effectively over the long term, so dollar-cost averaging evens out the bumps so that investors come out ahead. "I try to tell my clients to fund their Roth IRA accounts each month to take advantage of this time-tested strategy," Ryan J. Marshall, a New Jersey-based certified financial planner, tells . "Dollar cost averaging helps avoid 'market timing' at the wrong times." This investing strategy also helps take emotion out of the equation, Marshall adds. "More specifically, it helps clients not see as sharp of a decline on their statements during periods of pullbacks because they are adding money each month," he says. "Most clients look at the bottom line on what the value was last month versus what is the value this month." If you're already investing are regular intervals, then your best course of action is to , no matter what the market does. Let dollar-cost averaging do the rest. Don't miss: Read more: CNBC

U.S. dollar sinks as Trump tweets stoke intervention fearsPresident Donald Trump’s latest Twitter attack on Federal Reserve Chairman Jerome Powell, accompanied with more complaints about the U.S. dollar, is stoking...

World needs to end risky reliance on U.S. dollar: BoE's CarneyBank of England Governor Mark Carney took aim at the U.S. dollar's 'de... Thank you Mr president. You're managing to destroy in under 3 years what took decades to build. It may be scary, but we’re still the safest bet. Nonsense

World needs to end risky reliance on U.S. dollar - BoE's CarneyBank of England Governor Mark Carney took aim at the U.S. dollar's 'de... China isn't as rich as he thinks right ? Thanks Trump. What's a alternative? Chinese yuan? Euro? Bitcoin? A currency basket? Get real.

EU drafts plan for hundred billion-dollar fund to take on US tech firms, reports sayEuropean Union officials drafted a plan to launch a sovereign wealth fund to invest in companies that could compete with U.S. and Chinese tech giants, according to reports in the Financial Times and Politico. Good luck with that. Britain is leaving, Italy & Poland will be next. The EU is on its death bed. EU groups r suggesting ‘picking winners’ & putting up barriers to China & USA in addition. Especially with free trading U.K. about to Brexit. Translation....EU plan to steal an extra hundred billion dollars from member nations to fund a high tech pipe dream, in an ego driven attempt to outdo America!

Stocks, dollar climb before Powell's Jackson Hole speechWorld stock markets and the dollar rose on Friday as investors looked to a speec... Ugh. Hocus pocus.

Week ahead: Stocks could be rocky on trade, economy fears, as August breaks low volatility streakThe final week of August could be highly volatile as markets fret over the economy and the latest developments in trade wars. Wow, not a difficult prediction. Could be? No, it will be. He has resorted to burning down the house since he is unable to accomplish anything else. So much for August low volatility streak, eh? Everything he touches turns to shit. Nevermore



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