Comments on: Results of Dollar Cost Averaging for the TSX Composite http://www.canadiancapitalist.com/results-of-dollar-cost-averaging-for-the-tsx-composite/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Dollar Cost Averaging as an Investing Strategy http://www.canadiancapitalist.com/results-of-dollar-cost-averaging-for-the-tsx-composite/#comment-211087 Dollar Cost Averaging as an Investing Strategy Tue, 16 Feb 2010 12:43:45 +0000 http://www.canadiancapitalist.com/?p=1811#comment-211087 [...] DCA Results See Canadian Capitalist for review DCA for the TSX Composite. [...] [...] DCA Results See Canadian Capitalist for review DCA for the TSX Composite. [...]

]]> By: Dollar Cost Averaging | Financial Highway http://www.canadiancapitalist.com/results-of-dollar-cost-averaging-for-the-tsx-composite/#comment-184598 Dollar Cost Averaging | Financial Highway Wed, 11 Mar 2009 07:31:52 +0000 http://www.canadiancapitalist.com/?p=1811#comment-184598 [...] Capitalist did a review of DCA for the TSX Composite over the past few [...] [...] Capitalist did a review of DCA for the TSX Composite over the past few [...]

]]> By: Patrick http://www.canadiancapitalist.com/results-of-dollar-cost-averaging-for-the-tsx-composite/#comment-183995 Patrick Fri, 06 Mar 2009 14:25:37 +0000 http://www.canadiancapitalist.com/?p=1811#comment-183995 For those of you discussing whether dollar-cost averaging reduces risk, the surprising answer is "not really". Here's <a href="http://a-loonie-saved.blogspot.com/2008/07/reality-of-dollar-cost-averaging.html" rel="nofollow">a post from my blog</a> where I crunched the numbers. For those of you discussing whether dollar-cost averaging reduces risk, the surprising answer is “not really”. Here’s a post from my blog where I crunched the numbers.

]]> By: Book Winner, Twitter, Rate Drop and Weekend Reading | Million Dollar Journey http://www.canadiancapitalist.com/results-of-dollar-cost-averaging-for-the-tsx-composite/#comment-183961 Book Winner, Twitter, Rate Drop and Weekend Reading | Million Dollar Journey Fri, 06 Mar 2009 11:31:17 +0000 http://www.canadiancapitalist.com/?p=1811#comment-183961 [...] Canadian Capitalist gives us the results of dollar cost averaging the TSX composite. [...] [...] Canadian Capitalist gives us the results of dollar cost averaging the TSX composite. [...]

]]> By: Friday Links | The Canadian Finance Blog http://www.canadiancapitalist.com/results-of-dollar-cost-averaging-for-the-tsx-composite/#comment-183954 Friday Links | The Canadian Finance Blog Fri, 06 Mar 2009 10:28:17 +0000 http://www.canadiancapitalist.com/?p=1811#comment-183954 [...] Canadian Capitalist shows the results of dollar cost averaging for the TSX composite. [...] [...] Canadian Capitalist shows the results of dollar cost averaging for the TSX composite. [...]

]]> By: The January Effect- Weekly review | Financial Highway http://www.canadiancapitalist.com/results-of-dollar-cost-averaging-for-the-tsx-composite/#comment-183938 The January Effect- Weekly review | Financial Highway Fri, 06 Mar 2009 04:26:06 +0000 http://www.canadiancapitalist.com/?p=1811#comment-183938 [...] Canadian Capitalist Looks at Results of Dollar Cost Averaging for TSX [...] [...] Canadian Capitalist Looks at Results of Dollar Cost Averaging for TSX [...]

]]> By: Traciatim http://www.canadiancapitalist.com/results-of-dollar-cost-averaging-for-the-tsx-composite/#comment-183736 Traciatim Wed, 04 Mar 2009 13:36:02 +0000 http://www.canadiancapitalist.com/?p=1811#comment-183736 Bob, not sure if you are going to be back, but in the very first value example they use the chart on first glance would seem to indicate the rate of return on value averaging at 33% vs dollar costing at 32%, a small margin in favour of value averaging. However, the actual dollar value ends up with 135 shares owned with a value of $16 a piece for a total capital of $2160 for the value average technique and 235 shares owned with a value of $16 a piece for a total capital of $3760. I'm not so sure I see the advantage in a rising market, but I think i have to study the paper more as I've only skimmed through getting the premise and looking at the charts. It would seem that a yearly value averaging technique would be a perfect match for a discount brokerage like Share Owner Investments if you picked say 10-20 companies you really would like to own for a long time and value average in to them yearly (or even once a quarter). Your transaction costs would be really low, you would have free DRIPing, the account interface is really simple and easy to manage, and they pre-screen companies that are available making it mostly a pick of large stable companies. I see a strategy formulating for my future. Bob, not sure if you are going to be back, but in the very first value example they use the chart on first glance would seem to indicate the rate of return on value averaging at 33% vs dollar costing at 32%, a small margin in favour of value averaging.

However, the actual dollar value ends up with 135 shares owned with a value of $16 a piece for a total capital of $2160 for the value average technique and 235 shares owned with a value of $16 a piece for a total capital of $3760. I’m not so sure I see the advantage in a rising market, but I think i have to study the paper more as I’ve only skimmed through getting the premise and looking at the charts.

It would seem that a yearly value averaging technique would be a perfect match for a discount brokerage like Share Owner Investments if you picked say 10-20 companies you really would like to own for a long time and value average in to them yearly (or even once a quarter). Your transaction costs would be really low, you would have free DRIPing, the account interface is really simple and easy to manage, and they pre-screen companies that are available making it mostly a pick of large stable companies. I see a strategy formulating for my future.

]]> By: Thicken My Wallet » Blog Archive » The end of buy and hold? http://www.canadiancapitalist.com/results-of-dollar-cost-averaging-for-the-tsx-composite/#comment-183722 Thicken My Wallet » Blog Archive » The end of buy and hold? Wed, 04 Mar 2009 09:07:26 +0000 http://www.canadiancapitalist.com/?p=1811#comment-183722 [...] course, as Canadian Capitalist pointed out, a buy and hold strategy utilizing dollar cost averaging for a broad based index does not yield bad results over the long [...] [...] course, as Canadian Capitalist pointed out, a buy and hold strategy utilizing dollar cost averaging for a broad based index does not yield bad results over the long [...]

]]> By: bob http://www.canadiancapitalist.com/results-of-dollar-cost-averaging-for-the-tsx-composite/#comment-183657 bob Wed, 04 Mar 2009 00:23:52 +0000 http://www.canadiancapitalist.com/?p=1811#comment-183657 try value investing instead of dollar cost averaging.. http://www.studyfinance.com/jfsd/pdffiles/v13n1/marshall.pdf try value investing instead of dollar cost averaging..

http://www.studyfinance.com/jfsd/pdffiles/v13n1/marshall.pdf

]]> By: Ray http://www.canadiancapitalist.com/results-of-dollar-cost-averaging-for-the-tsx-composite/#comment-183652 Ray Tue, 03 Mar 2009 22:00:23 +0000 http://www.canadiancapitalist.com/?p=1811#comment-183652 Brad: If you wanted to DCA the bonus, you could buy money market funds with it and than set up an automatic PAC on monthly or biweekly bases. You would contribute on time for RRSP deduction and you could benefit from DCA, thats if you wanted to do DCA. Brad: If you wanted to DCA the bonus, you could buy money market funds with it and than set up an automatic PAC on monthly or biweekly bases. You would contribute on time for RRSP deduction and you could benefit from DCA, thats if you wanted to do DCA.

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