A.I.M. Users Bulletin Board

[ls7550]

Hi Doug

Consider including comparisons to constant weighted as well, 50/50 (or 80/20) yearly rebalanced back to 50/50 (80/20).

Where AIM shines is in its guidance against human nature. Left to your own and often investors will not profit take when high due to greed, nor buy when low due to fear. Comparing using AIM with not using AIM and after a few rounds of AIM having said 'I told you so' ... that's where its real benefit lies.

I recall AIM shouting BUY BUY! at/near the 2009 lows ... whilst on many other boards there were those capitulating out of stocks in fear of compounding the great 'losses' they'd already endured. I believe research shows that 'average' investors on average lag the 'average' by 2% annualised due to such bad behaviour. Obviously someone taking the counter side of such actions stands to benefit by 2% annualised (assuming like for like opposite trading).

Compared mathematically and as a broad average ... not much difference apparent. Its the in practice where the difference becomes much more evident.

Regards. Clive.