Dollar-cost-averaging (DCA) can be an opportunity for investors to take advantage of a down market. DCA helps reduce volatility by removing emotion from purchasing, leverages the down market by capturing stocks at lower prices, and helps take the guess work out of investing.

• Look at down markets as an opportunity. Many investors are victims of their own emotions.
  
  
• Often after stock prices have risen markedly, investors get optimistic and buy shares. Those same investors often sell when they become fearful after prices have already dropped.
  
  
• The consequence is investors buy at high prices and sell at low prices, the very opposite of what they should do to best work toward their goal.
  
  
• It’s affordable. You can invest the same amount but payments are spread out over time.
  
  
• Keep in mind that dollar-cost-averaging does not protect you against losses and is a long-term strategy.
  
  
• Such a plan involves continuous investment in securities regardless of fluctuation in price levels of securities. An investor should consider their ability to continue purchasing through periods of low price levels. Such a plan does not assure a profit and does not protect against loss in declining markets.

Implementing a DCA Strategy

• Invest on a regular schedule. The amount of money and frequency are up to you, the investor.
  
  
• Purchase in fixed dollar amounts at regular intervals, regardless of what direction the market is moving and regardless of the share price.
  
  
• Buy low, sell high. This approach results with you buying more shares at lower, perhaps bargain prices and fewer shares at higher prices.
  
  
• A key factor to the success of this approach is to select an amount you can stick with faithfully over time.

IMPORTANT DISCLOSURES: The opinions voiced in this material are for general information only and are not intended to provide or be construed as providing specific investment advice or recommendations for any individual. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly. Stock investing involves risk including loss of principle.

This research material has been prepared by LPL Financial. The LPL Financial family of affliated companies includes LPL Financial, UVEST Financial Services Group, Inc., Mutual Service Corporation, Waterstone Financial Group, Inc., and Associated Securities Corp., each of which is a member of FINRA/SIPC.