By using this type of strategy, you'll naturally end up buying fewer shares of your favorite stocks and ETFs when the market is high, and more shares when prices are lower. Over time, you'll end up with a mathematically favorable average cost, and it completely takes market timing out of the equation.

U.S. stocks finished off their best month in a year on Friday, with the Dow and S&P 500 clinching fresh record closing highs to cap off a blockbuster November. The Russell 2000 finished Friday just shy of what would have been its first record close since November 2021.

History suggests the small-cap rally since Trump's victory will fade in the coming year, Capital Economics said.