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"AllianceBernstein's Seth Masters ran the numbers. From a new blog post:...we conducted a historical analysis of the US stock market since 1926. This period encompasses more than 1,000 different entry points across a wide range of market environments, from the Great Depression to the bull markets of the 1980s and 1990s and to the global financial crisis in 2008.Statistically speaking, investing all at once has been the best strategy for maximizing returns (Display 1). The average stock market gain in all rolling 12-month periods since 1926 was 12.2%, while the average result of staying in cash was only 3.6%. Dollar-cost averaging with fixed monthly installments delivered average returns of 8.1% across all the rolling 12-month periods—much better than holding cash but more than 4% worse than investing immediately. That’s because stock markets tend to rise over time, so investing immediately wins on average."
"AllianceBernstein's Seth Masters ran the numbers. From a new blog post:...we conducted a historical analysis of the US stock market since 1926. This period encompasses more than 1,000 different entry points across a wide range of market environments, from the Great Depression to the bull markets of the 1980s and 1990s and to the global financial crisis in 2008.Statistically speaking, investing all at once has been the best strategy for maximizing returns (Display 1). The average stock market gain in all rolling 12-month periods since 1926 was 12.2%, while the average result of staying in cash was only 3.6%. Dollar-cost averaging with fixed monthly installments delivered average returns of 8.1% across all the rolling 12-month periods—much better than holding cash but more than 4% worse than investing immediately. That’s because stock markets tend to rise over time, so investing immediately wins on average."
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