Hi Allen, Re: AIM and the Real World.............
Mr. Lichello is kind enough to track a T.Rowe Price mutual fund's history as well. It is far more typical than his hypothetical $10-$4-$10 cyclic model. The model was meant to show that Price Appreciation really didn't matter as the stock never exceeds its initial price/share but trading profits added up nicely.
I've been using AIM continuously since January of 1988. While I've never found a stock that cycled as deeply or as frequently as Mr. Lichello's model, AIM has been able to manage my stock inventory quite well over the years. Let's see, there was the continuing Saving and Loan crisis of the '80s and early '90s, the Iraq invasion of Kuwait, the Long Term Capital Management collapse, the Dot Com bubble, the 9/11 attacks, the Real Estate bubble and sub-prime mortgage collapse and eight presidential elections along the way. Each one activated the AIM Inventory Management System to some degree.
Hypothetically, I wonder where I'd be if I'd not come across Mr. Lichello's book in 1986..................
