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Initial investment and contributions (ca.7 years)

Initial investment and monthly contributions (ca.7 years)

How to invest into the stock market while being risk-averse regarding ones emotions ("loss aversion"), but still feeling motivated to directly invest into stock-index-products? Well, here i am displaying a...

Investment and monthly contributions over 7 years, S&P 500 (recheck 2000 - Oct. 2016)

...US-Stock-INDEX-ETF (Portfolio 1/orange) and a European Stocks-Investment (Portfolio 2/blue). The red line, more or less linear, represents the cumulative amount over the whole investing period. From year to year the investment amount is rising by USD 1,800 since the monthly contribution-plan is established at USD 150.

The tough years 2008 and 2011 made it possible to gain from the COST-AVERAGE-EFFECT, therefore buying into the stock-market while the prices were low-er. We could follow a similar picture in the years 2000 up to 2003 - where I also give an example of the similar portfolios/underlyings versus the linear-cash-line (in red):