While a stock's price may be lower than the initial investment value, the ability to acquire more shares at a lower price means that the short-term decrease in average stock price should be balanced out when the share price increases. Therefore, despite times when stocks see an unexpected downturn, continuously investing in a stock while it is at a lower price just means that a stock is more of a bargain purchase.
Source: http://www.investorguide.com/igu-article-967-stock-strategies-dollar-cost-averaging-stock-strategy.html
Tags: investing strategies
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