Thursday, February 27, 2020 6:02:22 PM
This is the summary of a backtest from 1972 using the S&P500 (10 year treasury for cash) with Portfolio Control being uplifted by 2 times inflation at each (monthly) review.
The 1970's had very high inflation, so the test was primarily to have a look-see at what AIM with a 2 x inflation PC uplift might have 'looked-like'.
Quite a few AIM buy trades were missed due to cash reserves being unavailable (if a monthly review indicated a buy action but insufficient cash was available to fully fill that instruction then that months review was simply ignored).
https://drive.google.com/file/d/1vxVafGaIxlLeTH86HrF6GYw1Fic1DjWu/view?usp=sharing
AIM annualised 11.1% total return (73% average stock exposure), versus 100% stock Buy and Hold annualised 10.3% total return
Clive
The 1970's had very high inflation, so the test was primarily to have a look-see at what AIM with a 2 x inflation PC uplift might have 'looked-like'.
Quite a few AIM buy trades were missed due to cash reserves being unavailable (if a monthly review indicated a buy action but insufficient cash was available to fully fill that instruction then that months review was simply ignored).
https://drive.google.com/file/d/1vxVafGaIxlLeTH86HrF6GYw1Fic1DjWu/view?usp=sharing
AIM annualised 11.1% total return (73% average stock exposure), versus 100% stock Buy and Hold annualised 10.3% total return
Clive
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