NW-Bound
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 3, 2008
- Messages
- 35,712
"Maintain constant AA and rebalance at beginning of year" is not a bad thing to do. Lots of people would do a lot better financially if they follow that. I do not do that though.Not sure what you're spun up about. The context of the OP's question is clear in his post. He's talking specifically about a rule for buying back in. IMO Mencken's observation applies:
But if you want to talk about rules like "Maintain constant AA and rebalance at beginning of year?" they are neither right nor wrong, really. They are never going to be right in retrospect because they will never consistently maximize total return. But they are never really wrong, either, because they are useful in contemplation of a totally uncertain future. Really they are not rules at all, rather they are sort of aphorism.
I was just teasing people who take that as a religious dogma.