A.I.M. Users Bulletin Board

[SFSecurity]

RE:

...the benefit of Aiming, the advantage Aim gets from increased volatility....

Take a look at the image from Morningstar that I posted earlier - #38172. Now take the 50% that is not a bond but some form of equity and run AIM against the blue line and you can see a very clear reason to use AIM.

Without using Vealies, or delayed buying, over the ten years from January 2004 through December 2013, using the DOW figures, AIM gets 4.75%/year with 35% cash (at the bottom it has 2.8% spare cash), 10% buy and sell safe, no minimum trade, while B&H gets 4.68%/year. AIM doesn't do all that much better by itself but if a few of the modifications discussed here were used it would improve the results significantly.

Also, remember the discipline of AIM would avoid the common mistake of getting out of the market as it heads into the 50.7% tank. This is the virtue of buying from the scared and selling to the greedy that AIM commits you to.

Then add in the extra volatility of the 2x or 3x ETFs and you have a handle on much better returns and don't forget the returns from the bonds that you hold. Makes sense to me.

Best,

Allen