A.I.M. Users Bulletin Board

[ls7550]

The idea was to come up with something more meaningful than just a "one size fits all" cash reserve with traditional AIM.

I see it as there is no reliable single consistent choice, each asset/asset-allocation have their good and bad spells. 60/40 is often considered as the better 'fits-all' case as a broad average. Much however is subject to the choice of start date and using a dynamic/variable tends to be better than a fixed choice ... and the vWave is one such measure/indicator.

Whether you just use that at the start and let it run as-is, or periodically 're-start' tends to matter less, as often AIM will tend to indicate/carry similar dynamics as vWave anyway.

Early 1980's when Dow/Gold was down at near 1.0 levels and vWave indicated it to be appropriate to be heavy into stocks. Late 1990's highs and low stock was suggested. 2003 and 2009 lows and again high stock weightings were suggested ...etc. If you get the initial loading right then the longer term rewards tend to be satisfactory. Get it wrong and a peak to trough investment period can yield rewards comparable to or even less than just cash deposits.

Buy and hold is nothing other than costless lumping all-in each and every day, a running AIM will have the dynamics that reflect reasonable relative valuations, that supplemented with having started out with reasonable allocations has you set on a path were the rewards tend to be satisfactory.

Clive.