Valuation gauges such as the CAPE ratio and the total market cap-to-GDP ratio are at worrying levels, and investors including Michael Burry and Ray Dalio have called for a correction. The article cites Peter Lynch's view that more money is lost preparing for or anticipating corrections than in the corrections themselves, and his 1995 figures showing that investing every Jan. 1 from 1965 to 1994 returned 11% a year on average, versus 10.6% when investing at each year's peak. It then suggests four ETFs for dollar-cost averaging: the Vanguard S&P 500 ETF (VOO), with a 15.7% average annual total return over 10 years; the Invesco QQQ Trust (QQQ), up 21.1% on average over the past decade; the Global X Artificial Intelligence & Technology ETF (AIQ), averaging 33.6% a year over the past three years; and the Schwab U.S. Dividend Equity ETF (SCHD), with a 3.4% yield and a 31.4% year-to-date gain.
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