from Wiktionary, Creative Commons Attribution/Share-Alike License.
- initialism The
IATAairport code for Ronald Reagan Washington National Airport (formerly District of Columbia Airport) in Washington, D.C.
- initialism law District Court of Appeal (or of Appeals), in various
- initialism organic chemistry
Sorry, no etymologies found.
I suggest we simplify the comparison of DCA and LS by saying that for the purpose of discussion the DCA is applied to a portfolio that has two asset classes: money market fund and equity market index with a beta of 1.0.
DCA is by definition the strategy for us working stiffs with 401ks.
And the average payout from DCA is 4000 less than LS, so you don't even make out there.
The Williams, Bacon report you linked shows that the standard deviation of DCA is lower.
It looks like DCA is being explained to the public the wrong way.
You can't time the market, so DCA is a way to hedge, to make sure that SOME of your investments are well timed.
The record low maximum temperature for the day at DCA is 56 (from 1988) - probably safe but it may be close.
DCA is a legitimate way to avoid certain investment mistakes.
The power of DCA is when the market goes up, you make A LOT of money, and if the market goes down, you lower your ACB, helping you when the market goes up again.
For a given average investment, DCA is riskier than the lump sum approach.