Investing is the Opposite of Sex

For another dose of Scott Adams' irreverent financial commentary, see The Horoscope of Investing. Adams suspects that rebalancing to maintain a fixed asset allocation is mostly make-work for investment advisers. That dastardly thought was roundly rebutted in this comment from MattF:

The basic reasoning behind both dollar-cost-averaging and periodic rebalancing is that, when you do them both, you get a sort of automatic buy-low, sell-high strategy, and you get some medium-term protection from market volatility. In fact, simulations show that DCA actually improves your performance in volatile markets, mainly through buy-low.

Yes-- it's an imperfect, mechanical, and boring strategy …. *** Remember, your financial strategy should strive to be the opposite of sex: if it's exciting, you're doing it badly.