Ben Carlson, Columnist

Lump-Sum Investing Is the Best Strategy, Except Now

In this market, dollar cost averaging provides a lower probability of large losses.

April 18, 2018 at 6:56 PM UTC

Corrected

April 26, 2018 at 3:18 PM UTC

Ben Carlson is director of institutional asset management at Ritholtz Wealth Management. He is the author of "Organizational Alpha: How to Add Value in Institutional Asset Management."

Deploy that cash.
Photographer: Thomas Trutschel/Photothek via Getty Images

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The combination of a long bull market, high valuations, rising interest rates and increased volatility can make investors nervous about putting money to work in the market. But many of those sitting on cash missed out on huge gains in stocks.

There are three options for deploying large cash allocations in this type of market: