A.I.M. Users Bulletin Board

[SFSecurity]

Re: how AIM behaves...

You said:

Each time the portfolio reinvests cash in replenishing shares it does some catching up with Buy/Hold. After a while it can move ahead of B/H and then rarely will fall behind again. However, it is the compounding of the reinvestment profits (LIFO gains) that builds the lead. If no market set backs occur, then AIM is perpetually behind even if less risky.

This matches what I've been seeing so I guess the slow start is just inherent and we need to be patient. Good point to keep in mind and tell other newcomers to AIM.

As to selections that I asked about, they are ETFs with high volatility, what AIM needs to work its magic. In fact, IIRC, someone on the list suggested a volatility of 2 to 1 or more 52 week high to low.

To me the idea that Toofuzzy says, "You should choose investments because you want to own them, not because they look good to aim." seems contrary to one of the core ideas behind AIM, removing emotion from stock trading; follow a system and don't let your love of a position keep you from selling when it goes up and buying when it goes down. Yes, you need to look at every investment for its basic value. Buying a stock/ETF where the management is bad or the industry is going the way of buggy whips makes no sense, neither does it make sense to buy where there is no volatility for AIM to utilize.

So, it seems to me that four basic screens are quality of the industry/sector, quality of management and how they have done, likely good future and volatility. Since there is no way to predict the future one can only read what has happened and how the stock/ETF has responded under AIM management.

One way to find out about the sector/industry is to ask around among friends and weigh what they say and how it correlates to to what you find yourself, flip a coin and take a gamble (or not!) based on as unemotional evaluation as you can muster. That is why I asked what others feel. You know, the wisdom of crowds.

Warmest Regards,

Allen