Story perspectives

Investors Thrive with Dollar-Cost Averaging Amid Market Gains

6/1/2025

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Summary

Story summary

Dollar-cost averaging helps investors build portfolios gradually, reducing losses in bear markets.
Historical data indicates that dollar-cost averaging leads to faster recovery compared to selling or withdrawing.
Newmont NEM's stock has risen 40% YTD, driven by increasing gold prices and strong quarterly performance.
ASML Holding presents a favorable risk-to-reward profile amid trade tariff uncertainties, with analysts optimistic on price targets.
Nike's partnership with Amazon could improve margins and earnings, aiding recovery in challenging market conditions.

History

Historical Context

Dollar-cost averaging, popularized by Benjamin Graham in 1949, emerged as a strategy during volatile markets. Its effectiveness mirrors historical recovery patterns, such as post-Great Depression rebounds. This method helps investors mitigate losses, aligning with trends seen in past economic recoveries, like the tech boom following the 2000 dot-com crash.

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Story summary

Dollar-cost averaging helps investors build portfolios gradually, reducing losses in bear markets.
Historical data indicates that dollar-cost averaging leads to faster recovery compared to selling or withdrawing.
Newmont NEM's stock has risen 40% YTD, driven by increasing gold prices and strong quarterly performance.
ASML Holding presents a favorable risk-to-reward profile amid trade tariff uncertainties, with analysts optimistic on price targets.
Nike's partnership with Amazon could improve margins and earnings, aiding recovery in challenging market conditions.

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