Historical Best Day of Month to Dollar Cost Average or Invest: Updated: 1950 to 2014
This article updates the previous "Best Day of Month to Dollar Cost Average".
1. This article now covers February 14, 1950 up to July 8, 2014.
2. The previous article used the Average S&P 500 methodology, which over weighed the S&P 500 when it is large (over 1500), and under weighed the S&P 500 when it was small (around 20 on the S&P 500 in 1950).
3. This article uses the "Percent Above 30 Trading Day Moving Average" methodology. This way, whether the S&P 500 had a low value or high value, the results have equal weight.
4. To determine the best day of month to dollar cost average, choose the lowest "percent above 30 trading day moving average" value.
The best two days of the month to dollar cost average are on the 26th (#1) and 25th (#2) with the lowest value of percent above 30 trading day moving average.
#3a: 19th (0.20%)
#3b: 27th (0.20%)
#4a: 10th (0.22%)
#4b: 24th (0.22%)
The rest of the values can be seen in the chart above.
Beginning of the Month Boost:
At the beginning of the month, the percent above 30 trading day moving average seems to be at its highest values.
One possible reason why is because of investment in 401k and retirement funds close to the beginning of the month, which pushes the S&P 500 up during this time.