1.   Bondholders do not like to see the value of their fixed-income assets decline and will sell at the first sign of higher inflation.

2.   Franklin Resources Inc. said its earnings rose in the first fiscal quarter, though assets under management declined because of slumping financial markets in Asia.

3.   If the assets declined too far, you might not get all your capital back.

4.   The only scenario in which dollar cost averaging comes out ahead of lump-sum investing is when the asset declines in value over the investment period.

5.   And unlike other big banks, which have had to increase loan reserves, the nonperforming assets at Citigroup declined, he noted.