Posted on July 10, 2007 by la_ciudadista
What is DCA?
Dollar cost averaging is an investing technique intended to reduce exposure to risk associated with making a single large purchase. The idea is simple: spend a fixed dollar amount at regular intervals (e.g., monthly) on a particular investment or portfolio/part of a portfolio, regardless of the share price. In this way, more shares are purchased when prices are low and fewer shares are bought when prices are high. The premise of dollar cost averaging is that the investor wants to guard against the market losing value shortly after making his investment. Therefore, he chooses to spread his investment over a number of periods. (From Wikipedia)
According to these two articles they don’t. Click the links to find out.
MSN Money Mutual Funds: The costly myth of dollar-cost averaging – By Timothy Middleton
Popular wisdom says scheduling your investments is the best way to make money. But it’s actually a sales gimmick to wheedle over time what you won’t commit up front.
USA Today: Dollar-cost averaging’s not all it’s cracked up to be – Investing By John Waggoner
Sometimes, things aren’t as bad as they seem. They’re worse.
You don’t want to crash through the floor when you’re checking for termites. And when the doctor checks out that nagging rash, the four words you don’t want to hear are, “Nurse, evacuate the building.”
Filed under: Investment | Leave a comment »
Posted on March 5, 2007 by la_ciudadista
Today, the Philippine Stock Exchange Index (PSEi) has again dropped by 142.46 points. This was yet another episode in what others say is a global chain shake-up of the world’s stock markets from China, Southeast Asia and New York.
As stock prices fall this may be a good opportunity for investors to do some bargain hunting in the exchange.
I for one has invested a small sum in a food and beverage company in the Philippines today. Its now a wait and see if my gamble or investment has paid off. On a fundamental side the food and beverage industry and the company looks promising this year. There is growth in non-carbonated drinks and expected higher demand for snacks and beverages due to the 2007 elections.
Up until December 2006 I was a puritan conservative investor. All my investments are mostly in insured high yield deposits in banks. Opportunity came last December when the IPO for Philippine National Energy Corporation – Energy Development Corporation (PNOC-EDC) was made available to the general public.
It was my first equity investment. I bought a just 2,000 shares at PHP 3.20 per share which was the minimum for small Filipino investors (the maximum was 7,000 shares). I just sold my shares through an online broker mid-February and made a profit of about 75 percent.
Now I consider myself as more of a moderate conservative investor.
Filed under: Investment | Tagged: Business, Initial public offering, Investing, IPO, Southeast Asia, Stock, Stock market, Stocks and Bonds | Leave a comment »