A.I.M. Users Bulletin Board

[SFSecurity]

Questions and an observation...

When you do a Vealie and increase Portfolio Control, does this mean that when a downdraft starts the buying will be delayed? It seems like that to me but I'm not sure.

Also on this, is there any reason to do Vealies for a while and then sell a bunch at what you are guessing is at or near a market high? I recall someone on the forum suggesting that sells be accumulated looking for a better market price. Isn't this sort of an informal Vealie?

If you do decide to accumulate sales and/or sell after Vealies, what criteria is best to use to choose when to sell? I can readily see large risk that you would actually sell after the top and when the price is below where your target sell is.

Now for the observation. Looking at http://www.aim-users.com/pic.htm#csco" rel="nofollow" target="_blank" >Perverse Investment Candidates it seems clear that for the most part a higher beta works better for AIM compared to B&H, but not always. COGN with a beta of 1.2 does much worse than B&H (2007 data) as well as ELX with a beta of 1.9 (2007 data).

It seems to me that if you compare the various parts of the normal business cycle for a given sector, B&H is better in the up cycle and much worse in the down cycle, whereas AIM does okay in an up cycle and gang busters in a down cycle in that it holds losses to a minimum and regains losses faster than B&H. This is what I get from Lichello's book(s) and observation. Is this correct?

Warmest Regards,

Allen