Lump Sum Investing vs Dollar Cost Averaging When Stocks Are Expensive

We know that dollar cost averaging (DCA) underperforms lump sum investing (LSI) about two-thirds of the time. That's because stocks tend to go up more often than they go down. But does LSI beat DCA when stock market valuations are high compared to historical averages, as they are now? That's the question we cover in this video.

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Video Resources
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Vanguard Study: http://www.smartretirement.com.au/wp-...
Of Dollars and Data Article: https://ofdollarsanddata.com/dollar-c...
Shiller PE (CAPE): https://www.multpl.com/shiller-pe
Jon Luskin Paper: https://jonluskin.com/wp-content/uplo...
Wade Pfau Paper: https://www.financialplanningassociat...

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ABOUT ME

While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.

I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (https://amzn.to/3by10EE)

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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.

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