A.I.M. Users Bulletin Board

[ls7550]

30% range between yearly market low and high are quite common http://online.barrons.com/public/page/sp-hilows.html which fits with 10% SAFE, 5% minimum trade size (30% hold zone).

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)

Collectively = 5.2+3.6+1.1+1.2 = 11.1, Compared to 100% stock 6.5+4.5 = 11.0.

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.