I have had a worldview when comes to finances for over 15 years that I am now questioning.
1. I believed 8-12% return on your money over the long term was reasonable, conservative, and realistic.
2. I believed in No-load mutual funds.
3. I believed in dollar cost averaging.
4. I believed Technical Analysis does not work.
5. I believed in A Random Walk Down Wall Street.
First there was this segment from NPR(of all places!) that blew my mind: Technical Analysis actually works
(at least for oil)
Then this article from Slate on Suzy Orman
. The article disses No-load, and Dollar-Cost Averaging without any references.
Was NPR sinking to a major network level of reporting? Or does TA really work?
What is the mounting evidence against No-loads as part of a passive, long term strategy?
There is no other choice for me but to be an optimist for the long term health and prosperity of our country and by proxy, the stock market. Else, the best thing to do would be to stock up and canned food and guns, and that really isn't a nice way for me to live.
Why then is Dollar-cost averaging bad, if you are doing it in mutual funds, and doing it for the long term?
There are many books out know calling into question A Random Walk Down Wall Street. Is there any truth to them?