To Wade or Plunge
Sometimes, clients ask to ease into the market when they’re faced with the opportunity to invest a sum of cash. Although it feels more comfortable to wade given the uncertainty inherent with markets, the evidence shows that, approximately two thirds of the time, you are better off taking the plunge. This is true, both domestically and internationally, over the periods analyzed in a piece by Dimensional Fund Advisors. Plunging has some very positive implications for both average and sophisticated investors. In light of uncertainty, basing decisions on evidence actually reinforces your strategy each time you add money to your portfolio, whether it’s a lot or a little. Don’t let the failure to apply good strategy be your downfall. Click here to revisit this 2004 piece, To Wade or Plunge.