A.I.M. Users Bulletin Board

[SFSecurity]

Question RE: Cash Burn

On http://web.archive.org/web/20051222071617/http://www.aim-users.com/cashburn.htm there is a spreadsheet of cash burn (Would love to know how it is constructed) and % drop of stock value titled AIM - Bear Market - Sustained Diving Market. It seems that, given the 2007-2009 S&P 500 was down 56%, that holding 33% cash would be enough to not run out of cash until -50% with a safe of 30%. Even 50% cash would not run out until a stock is down 60% with a 30% Safe. Yet I see comments that suggest that as much as 60+% cash is needed if you hold individual stocks.

What gives with these wildly divergent figures? What am I missing or misunderstanding?

Thanks,

Allen