Taking the Plunge
A February 4, 2019 article in the Wall Street Journal titled How to Invest When Markets Are Down noted that “If you have a lump sum to invest, rather than a small amount each month, you may be better off investing it all at once, mainly because keeping it on the sidelines in cash while you wait to meter it into the markets will drag down your returns, a 2012 Vanguard study found.”
We completely agree, but we tend not to do this as it can be quite a shock if one were to immediately confront a December 2018 bout of weakness. If you are a Sigma client and feel you can take the emotional plunge, please let your investment advisor know. The difference in investment returns and wealth accumulation will be worth it.
All comments and suggestions are welcome.
Robert M. Bilkie, CFA