Thursday, February 28, 2008

Daily Dose of Excel & Dollar-Cost Averaging

Volatility isn't always a bad thing.

In the volatile market, I have about $700 more in my account than if the market was steady. Either way the stock is $1.24, I was just able to buy more of it in the volatile market. It’s the underlying fundamentals of a company that determine its stock price over time, but the utter wackiness of investors that determine it in the short term.

I believe investment folk call it dollar-cost averaging when you invest the same amount of money periodically. What do you think? Should I rejoice at each downturn?

Daily Dose of Excel

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