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The negative momentum in stocks this month might be alarming - but dollar-cost averaging is a strategy that helps investors take advantage of the underlying volatility associated with the equity markets. Since it's impossible to time the markets, it makes sense to allocate a certain portion of your capital toward buying quality stocks trading at a discount each month.
For example, in 2022, many tech stocks experienced a massive decline in valuations… before sprinting right back to historic highs during the first half of 2023. That means periods when stocks are declining, like the one we're in now, are ideal for bargain-hunting investors looking to build their portfolios.