Today I was reading Dividend Mantra's post titled "What are you buying?" , well unfortunately I'm not buying anything right now although there's still some values available it's definitely not like it was the last quarter of 2011. The Stoic commented "There are several companies that I would like to add to my portfolio to better diversify, but just can't justify today's prices compared to just four months ago. This is my biggest challenge these days: if entry price matters or if DCA would be the best approach." This is very much the position that I would be in was I actively investing right now versus investing in my debt payoff.
I think the best course of action now would be to do both, DCA and get the entry price you want. As long as your monthly investment amount is high enough I think it would be prudent to blend the two by taking half of your amount and DCA into whatever position is the best value at the time or underweight in your portfolio. I would then build up cash with the other half. My reasoning behind this is that even though the markets have made a historic run and the consensus is that we're due for a pullback, or at the very least a cooling off period of flat trading, that you just never know what the markets and investor sentiment in general is going to do.
Due to the general lack of across the board value I think this could work out. If the markets continue to shoot higher then you're still adding to your positions and getting lower entry prices while building up some cash for the day when a pullback does come.
Personally I hope the "Sell in May and go away" rears its head again this year.