Averaging for Dollars
“It’s tough to make predictions, especially about the future.” So said Yogi Berra, whose tendency toward malapropisms arguably made him more famous than his exploits on the baseball field, which earned him a spot in the Hall of Fame. Nonetheless, he was right. It is tough to make predictions, and yet investors must find some way to anticipate future events if they are to be successful. Fortunately, there is a method for investing in mutual funds that can help stem the risks associated with portfolio decision making. This method, called dollar-cost averaging, involves investing a fixed amount in an investment…