Important things about market corrections
Editor’s note: This is the second of a two-part article about market cycles. The first part ran July 1.
• Invest systematically — One way to avoid the timing dilemma is to use a simple strategy called dollar-cost averaging — the practice of investing a fixed amount of money in a particular investment at regular intervals.
Because the amount invested remains constant, the investor buys more shares when the price is low and fewer shares when the price is high.