Gyroscopic Investing

I remember some back testing suggesting that adding funds equally in dollars rather than to the lagging asset first seemed to have better returns.

I would have hit a rebalancing band in March/April lows had I been doing that.

Is this an ok approach, and can anyone point me to the proof?

whatever works ... personally i even out the 4 pieces when i buy stuff

There was an epic thread about this a few years back...I seem to remember that most prefer the "add to the lagging asset" approach. Ultimately it probably comes down mostly to temperament and personal disposition though. I have a tough time putting money into an asset that is doing really well, for example. I like the feeling of buying an asset for a bargain (even if that's not necessarily the case). That's why I buy the lagging asset; mostly because it suits me psychologically, it scratches my contrarian itch.

I think the optimal path can't be known in advance..

FWIW, I let cash accumulate until it reaches 35% and then buy assets to rebalance back to 25x4. This method is easy and results in very infrequent trading.

The problem is when you already are sitting on a lot of cash ...whether to commit or not ...

Tlt and Gld seem to just keep sliding deeper and deeper in the red

mukramesh wrote: ↑Wed Feb 03, 2021 1:02 pm I think the optimal path can't be known in advance..

You don't need to just think that. It's a fact AFAIK.

My guess is that how you invest new money won't make that much of a difference in the grand scheme of things but see above.

pp4me wrote: ↑Wed Feb 03, 2021 2:46 pm

mukramesh wrote: ↑Wed Feb 03, 2021 1:02 pm I think the optimal path can't be known in advance..

You don't need to just think that. It's a fact AFAIK.

My guess is that how you invest new money won't make that much of a difference in the grand scheme of things but see above.

You don't need to just guess that. It's absolutely true because....

dualstow wrote: ↑Wed Feb 03, 2021 4:45 pm

pp4me wrote: ↑Wed Feb 03, 2021 2:46 pm

mukramesh wrote: ↑Wed Feb 03, 2021 1:02 pm I think the optimal path can't be known in advance..

You don't need to just think that. It's a fact AFAIK.

My guess is that how you invest new money won't make that much of a difference in the grand scheme of things but see above.

You don't need to just guess that. It's absolutely true because....

Don't know what that guy in the emoticon means to say but I'll take it to mean my observation is brilliant.