Wednesday, July 01, 2020 10:28:29 AM
Hi Clive, Re: SPY and the various business sectors.................
When AIMing each of the various sectors we see that they differenciate themselves through AIM's own activity. The column "% Target" shows where the sector is relative to its next AIM directed Sell target price. Note that Energy is at the bottom of the list. It has long been without any AIM ammo and is in the netherworld of "hope and pray."
(image is from a stock tracking software called StockMarketEye)
As you mentioned, Healthcare has done well in recent times and for the longer haul. Five of the positions are currently within 10% of their target AIM Sell prices. Note that most of the ones closest to selling are also "green" as far as their 1 Year price change.
While running separate AIM engines for each of these market segments is more work it also opens up more profit capture opportunities. I've struggled with the idea of what weight each sector should have in the total portfolio. If "equal weight" as sectors, the portfolio rarely tracks the S&P 500 Index. Most of the time, equal sector weights will either out or under perform. Even giving weights similar to the S&P 500 Composite doesn't match the index because of AIM's management.
The good news is that use of these "equal weight" sector funds generally has given a bit better dividend yield than the cap weighted ETF sectors. It would appear the smaller cap companies in each sector pay a greater dividend than their large and mega cap siblings.
All of the 12 positions did buying during the March lows. The last, RYE, did so by borrowing from Peter to pay Paul because there was no cash left in the register. Just three of the positions have now returned some cash from an AIM directed Sale. Most positions are near their 26 Week moving average price but scattered both sides of that line.
Using a Safe Withdrawal Rate on such a portfolio might work well. My age will require me to start mandatory withdrawal soon from my "retirement accounts." So, such discussion is of interest to me on a personal level.
Thank you,
OAG Tom
When AIMing each of the various sectors we see that they differenciate themselves through AIM's own activity. The column "% Target" shows where the sector is relative to its next AIM directed Sell target price. Note that Energy is at the bottom of the list. It has long been without any AIM ammo and is in the netherworld of "hope and pray."
(image is from a stock tracking software called StockMarketEye)
As you mentioned, Healthcare has done well in recent times and for the longer haul. Five of the positions are currently within 10% of their target AIM Sell prices. Note that most of the ones closest to selling are also "green" as far as their 1 Year price change.
While running separate AIM engines for each of these market segments is more work it also opens up more profit capture opportunities. I've struggled with the idea of what weight each sector should have in the total portfolio. If "equal weight" as sectors, the portfolio rarely tracks the S&P 500 Index. Most of the time, equal sector weights will either out or under perform. Even giving weights similar to the S&P 500 Composite doesn't match the index because of AIM's management.
The good news is that use of these "equal weight" sector funds generally has given a bit better dividend yield than the cap weighted ETF sectors. It would appear the smaller cap companies in each sector pay a greater dividend than their large and mega cap siblings.
All of the 12 positions did buying during the March lows. The last, RYE, did so by borrowing from Peter to pay Paul because there was no cash left in the register. Just three of the positions have now returned some cash from an AIM directed Sale. Most positions are near their 26 Week moving average price but scattered both sides of that line.
Using a Safe Withdrawal Rate on such a portfolio might work well. My age will require me to start mandatory withdrawal soon from my "retirement accounts." So, such discussion is of interest to me on a personal level.
Thank you,
OAG Tom
Buy from the Scared; Sell to the Greedy.....
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