Is Dollar-Cost Averaging a Safer Way to Invest in Sundial Growers?
Dollar-cost averaging can help minimize the risk and decision-making anxiety when investing in stocks. Rather than investing all of your money into a stock at once or trying to time the market, you can spread out your purchases over the course of several months -- or even years. Over the long haul, assuming you've picked a good investment, you could come out with significantly boosted earnings by buying shares of a stock at various price points.
But how well would this strategy work for a meme stock like Sundial Growers (NASDAQ: SNDL) that has been fairly volatile this year? Below, I'll look at the returns you would have made from using dollar-cost averaging with the popular pot stock versus just making one large investment.
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Source Fool.com
