If you're running AIM-HI and trade 5% of stock value = 4% of portfolio value (average), and a 30% hold zone x 4% amount traded = 1.2% benefit.
Typically 'cash' has historically been 1% more than dividends - around 5.5% and 4.5% respectively, and stock prices have averaged 6.5% capital gain.
80% average stock exposure x 6.5% = 5.2% 80% x 4.5% dividend = 3.6% 20% x 5.5% cash interest = 1.1% 1.2% 'trading' gain from add near year low, reduce near year high (average)
With stocks you have gains from price appreciation and income (dividends), with AIM you also have priced appreciation and income as well as some volatility capture gains.
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