Thursday, May 18, 2023 2:13:58 PM
Hi Tom. Monthly vs Yearly reviews
For a 1985 start year, setting AIM initial %CASH to the same as the longer running (older history) yearly AIM, to level the field, and rolling forward from there and the monthly reviewed version of AIM of Dow/Gold ratio progressively pulled ahead, for a while before seeing a spike down and then subsequently catching up and over-taking the yearly AIM again.
Overall the log linear regression (exponential trend line slopes) were near equal. The average of the yearly changes was higher for the monthly reviews, but so also as the standard deviations in yearly changes. Comparable rewards with higher volatility = lower risk-adjusted reward for monthly reviews compared to yearly reviews.
Monthly reviews was much quicker to throw away its 'cash' (gold) reserves into declining stock prices than was yearly reviewed.
Clive
For a 1985 start year, setting AIM initial %CASH to the same as the longer running (older history) yearly AIM, to level the field, and rolling forward from there and the monthly reviewed version of AIM of Dow/Gold ratio progressively pulled ahead, for a while before seeing a spike down and then subsequently catching up and over-taking the yearly AIM again.
Overall the log linear regression (exponential trend line slopes) were near equal. The average of the yearly changes was higher for the monthly reviews, but so also as the standard deviations in yearly changes. Comparable rewards with higher volatility = lower risk-adjusted reward for monthly reviews compared to yearly reviews.
Monthly reviews was much quicker to throw away its 'cash' (gold) reserves into declining stock prices than was yearly reviewed.
Clive
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