Dollar cost averaging in an expensive market

In by Claire Barnes1 Comment

Claire Barnes

Hi there,
I’m early in my investing journey and am currently focusing on building my core ETF portfolio.
Should my dollar cost averaging strategy change given the market record highs? Prices are at the point that I am ignoring my usual buy pattern (also checking the news to see if Trump has offended anyone). Is this ok? Or am I placing too much emphasis on price given my (supposed) strategy is averaging?
I’m interested to hear your thoughts and to know if your investment patterns have changed with the current market performance.

  • Edit

    Hi Claire,

    The idea of dollar-costing is that you invest the same amount, at regular intervals, as you'd know. If you're a little nervous about the prices at the moment, perhaps consider reducing the frequency at which you buy - could be quarterly, or even further apart than that - but stick with the same amount if you truly want to stick to DCA.

    I (Bryce) am still investing in the market, albeit much less frequently than I used to, given how I feel 2020 could play out.

    I hope that helps.