$QQQ: Mindless dollar-cost averaging won’t make you money
Most people who dollar-cost average only do half the job
True dollar-cost averaging isn’t about buying at high prices in a bull market. It’s about having the courage to buy the dip when the market crashes and blood is in the streets. Assets have to be cheap enough—that’s the only way to make dollar-cost averaging work
There’s also an implicit condition: the United States must remain the world’s leading superpower. That assumption has held for decades and will probably hold for the next ten years, but that doesn’t mean it will hold forever
If the country’s fortunes undergo a cyclical reversal, mindless dollar-cost averaging will become the slowest, most insidious way to destroy your wealth.
Most people who dollar-cost average only do half the job
True dollar-cost averaging isn’t about buying at high prices in a bull market. It’s about having the courage to buy the dip when the market crashes and blood is in the streets. Assets have to be cheap enough—that’s the only way to make dollar-cost averaging work
There’s also an implicit condition: the United States must remain the world’s leading superpower. That assumption has held for decades and will probably hold for the next ten years, but that doesn’t mean it will hold forever
If the country’s fortunes undergo a cyclical reversal, mindless dollar-cost averaging will become the slowest, most insidious way to destroy your wealth.