Forum Archive Index - January 2002

["winner69 ." <wwinner69@hotmail.com>]

Besides our friend Mary (Holm that is) having cheques cleared by the bank 
before she wanted them to Mary was also promoting 'dollar cost averaging' in 
today's The Herald. The sure fire way to buy stocks/units in her favourite 
managed fund cheaply she says.

http://www.nzherald.co.nz/business/businessstorydisplay.cfm?storyID=836926&thesection=business&thesubsection=general&thesecondsubsection=&thetickercode=



Timing is a funny thing - just the other day I read in Barrons that if 
anybody had bought into the Nasdaq on a 'dollar cost average' basis from 
1997 through 2001 they would have earned less than 1% - a pittance of a gain 
through one of the biggest bull markets of all time.

And I have seen a graph somewhere else that shows if you bought into the 
S&P500 on the same basis you now need the S&P500 to increase by over 20% to 
break even.

Everybody to their own thing obviously.

On the bright side if these people hadn't been putting the fixed amount away 
each month (or whatever) they most likely would have spent it. At least they 
have saved something.




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