Comment by kqr

Not at all -- it uses volatility in one's favour, by cashing out on temporary peaks and buying in on temporary lows.

What you describe sounds like a kind of momentum/market cap investing, which is favourable in the short term, but suffers a lot when things go bad.

(This is assuming one cannot predict future returns better than the rest of the market. If you do that all the better!)

Seems like there's a lot of confusion on this. I'll see if I can get a fuller article up.