A.I.M. Users Bulletin Board

[ls7550]

AIM is a form of over-rebalancing style, which will benefit when there's a tendency towards mean-reversion. Such tendency has been known since the 1930's, mean reversion--under the name "reversals"--was reported in a peer-reviewed academic journal in 1937: Cowles 3rd, Alfred E. and Herbert E. Jones (1937). "Some A Posteriori Probabilities in Stock Market Action". Econometrica 5 (3): 280–294).

https://bogleheads.org/forum/viewtopic.php?p=7517697#p7517697

Generally there's a tendency towards months to a couple of years of momentum, inclination towards mean reversion after 2 - 5 years. AIM is likely a good a choice as any in order to play that. For better prospect of 'reversion', index funds are better than individual stocks. Sector or main stock index funds are much less inclined to fail.

Clive

PS same namesake (Alfred Jones) as sourced my userid (LS7550). But that was Alfred Winslow Jones whereas the above paper is Alfred E Jones. Alfred Winslow Jones is attributed as being the first hedge fund manager, both long and short (LS) in around 75/50 respective proportions.