Get Back In The Game With DCA
by Charles B. Carlson, CFA
Dow Theory Forecasts

C'mon, admit it. You're scared to buy stocks right now. You think that stocks are headed lower, not higher.

And you know what? You may be right. Stocks may get cheaper.

But let's be honest . . . a few years ago you would have killed to buy stocks at their current levels . . . blue chips down 40%, 50%, 80% from their highs.

Now that you have your chance, what are you doing? Probably nothing.

What if I told you an investment strategy exists that will get you back in the game in a way that makes sense for your pocketbook as well as your psyche? In other words, what if you could buy stocks with just $50 or $100 (instead of $5000 or $50,000)?

Wouldn't that kind of investing help you ease back into this market?

Well guess what . . . you can invest as little as $20, $50 or $100 at a crack via a number of investment vehicles, including your BUYandHOLD account.

This form of investing a little at a time on a regular basis is referred to as "dollar-cost averaging," and B&H is tailored made for this approach since you can invest small amounts of money anytime you like.

Dollar-cost averaging (DCA) is an extremely palatable way to get back into the game simply because it is a whole lot easier putting $25 or $250 into this market then $25,000.

Bottom line: There are ways to ease back into the investing game that will allow you to sleep at night. Dollar-cost averaging is one such way.

Periodic Investment Plans, Dollar-cost averaging and Compounding do not assure a profit and do not protect against losses in declining markets and you should consider your financial ability to continue to purchase through periods of low price levels.

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