Tuesday, 19 July 2022 09:35

Dollar-Cost Averaging to Get Through Volatility

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Market volatility is seemingly endless these days and with more inflation or even worse, a recession, potentially around the corner, investors need options. However, knowing if the market has bottomed out is hard which is why you should employ a strategy you might already use to get through high volatility, dollar-cost averaging. Most likely already implemented in your 401(k) contributions, dollar-cost averaging is putting fixed amounts over periods of time into the market, say monthly or bi-weekly. This helps mitigate the risks of lump-sum investing at the wrong time but still keeps a steady long-term approach to your financial investment. Dollar-cost averaging is the Goldilocks solution to timing the market and sitting out the volatility and for young investors, it's an especially great strategy to keep in a long-term approach.


Finsum: No need to get wildly creative in volatile times, simple strategies can be enough to navigate high volatility.

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