Dollar-Cost Averaging in a Range-Bound Market
Dollar-cost averaging is back on the agenda for portfolio managers as entry timing, cash deployment and discipline changes the risk calculus.
Investors holding cash may be tempted to wait for a better entry point. Dollar-cost averaging spreads timing risk and reduces the chance of making a single decision at an unfavorable moment.
Averaging is a behavioral tool, not a guarantee of better returns; the pace should match the investment horizon.
The main risk is opportunity cost if markets trend higher. Investors should watch cash balances, valuation levels and planned deployment schedules in the sessions ahead.
This article is provided for information and educational purposes only and does not constitute investment advice. Market conditions can change, and past performance is not a guarantee of future results.