Should you add more to your stock holdings now or later?

Key Points

  • As a result of market declines and economic uncertainty over the last few years, many investors have been sitting on the sidelines in cash and bonds.
  • For those wanting to increase their allocation to stocks, historically the best average results have been achieved by making a lump sum investment, since over time the market tends to have an upward bias.
  • A dollar cost averaging approach may be prudent for those investors who are still on the sidelines and have a heightened perception of risk.
  • A faster plan for getting fully invested has worked best in rising markets, but scaling in over 12 months has historically provided noticeable protection in the worst of times.

Quarterly Commentary

Q4 2014

Click here to read the Winter 2014 issue of Quarterly Insights, which features our annual Investment Roundtable and features an author interview with strategies for finding your life’s true calling.