Why Dollar Cost Averaging is Not Working On China’s Stocks… yet.
The last 2 weeks was a
bumpy one for China’s stocks. Technology companies ranging from
Alibaba,
Tencent,
Didi and all the way to the
educational sector pretty much spooked investors all over the world. There was massive selling and it seemed to have paused after
JD reported good earnings.
Some of these company’s valuation are getting attractive once again as prices corrected in the last 2 weeks. This wasn’t music to the ears for those that are already invested. On the ground, I heard of many investors who took this opportunity to average down (buying at lower prices to lower the average prices). However, some investors seemed to have cracked under pressure and started asking why dollar cost averaging is not working.
Today, this article seeks to explain why dollar cost averaging is not working on China’s stocks…
yet.
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