A.I.M. Users Bulletin Board

[jibes]

Though this won't ans AIMster question direct it brings up a subject I have been thinking about lately and one that was talked about before this I'm sure. When doing long term studies (like 10 years) on blue chip stocks like those in the DOW 30 I have noticed that AIM did quite bad on most issues compared to buy and hold. Very bad indeed!
why?
As I thought about it, it popped into my head that the reason why was because the SHARE-to-CASH balance had become way out of whack. Of course these were tests usually done during the last 10 years when a big bull move was in effect.
toms "velie" takes care of this problem on a temp basis but it could make you a "buy and holder" with a small stake which may or may not be a good thing.
But for the long run a better way might be to do a re-balance every 1 or 2 years or when ever your STOCK VALUE--to -CASH ratio gets way out of whack. So, perhapes JJ's yearly reseting of STOCK to CASH ratio is the right thing to do, esp on the blues.

Jibes
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