Hi Clive....well said.
I think you summed up the really critical issue when you said,
"The amount initially paid for stock is critical. Buy at too high a price and longer term rewards can be less than inflation. Buy and sell at fair prices and the rewards are ok (real (after inflation) gains achieved). Buy at a relatively low/cheap price and later sell at a relatively high price and rewards can be outstanding.
A more important factor therefore is not which particular rebalance settings/style are used, but more that you don't overpay for stock in the first place. This is where AIM's cost-averaging coupled with the likes of vWave performs a reasonable job."
There are several different ways.....both fundamental and technical......to decide if one is paying a low or fair price. vWave is one. P/E, price/book, etc. is another. Use of charts and other technical methods are another way. My opinion is one needs to use whichever method suits their own needs and personality to decide whether or not they are overpaying for a stock or fund.
Again, you summed up the essence very well.
Regards,
Ray
