A.I.M. Users Bulletin Board

[SFSecurity]

Hi Gang, It's been fun watching the positions on my watch list. Basically when the stocks, as a group, mostly go up the bond funds mostly go down and vis-versa.

Anyway that leads the way to a book I recently got:

"Stock Market Cash Trigger," by David Alan Carter, Echo West Publishing, 2018, ISBN-13: 978-0-9980210-1-0 Paperback $17.99 on Amazon. There is also a kindle version that might be free to read.

Basically what he demonstrates, using only SPY as the indicator, is to sell the stock you hold when it drops below the 200 day SMA and put the cash into one of three bond ETFs: JNK, MUB and TLT, whichever is further up currently. Then, when SPY goes back up over the 200 day SMA buy back your stock. He tracks 10 stocks and the S&P 500 (SPY) NASDAQ 100 (QQQ) and the Russell 2000 (IWM) in comparison to Buy & Hope from 2000 through 2017.

It's amazing that even just selling and holding cash this way does great. Amazon B&H has a return of 1432.6% versus his method of 2393.6%. Apple 5042.3% versus 8843.5%. Of the 10 only IBM and Wal-Mart do better with B&H. The chart for this is on page 33.

On page 45, using the three bond ETFs for your cash holding places, the results are incredible, I kid you not. Amazon gets 4124.8% versus the B&H of 1432.6%. Apple gets 15,051.6% versus 5042.3% B&H.

The rest of the book goes through other examples in more depth.

One interesting point he makes is that he found that checking things at the end of the month rather than at the first does a bit better.

In a way his approach is similar the AIM, just 100% moves rather than 10-15%. Like AIM, it is a longer term process, not a short term get rich quick scheme.

He also wrote another book, "The 12% Solution" that is also available on Amazon.

Even if you don't wish to use his method I think reading the book might help you work with AIM better in the long run.