... fans of dollar cost averaging because the strategy is not optimal if the market does go straight up (You would have been better off putting all $5,000 into the market at the beginning of the period.) ... hold a broadly diversified bond fund The U.S Treasury issues large amounts of bonds These issues are considered the safest of all and these bonds are the one type of security where diversification ... higher at the end of the period While a total of exactly $5,000 is invested in both cases, the investor in the volatile market ends up with $6,048—a nice return of $1,048—even though the stock...