A.I.M. Users Bulletin Board

[OldAIMGuy]

Hi Clive, Re: AIM Cash Reserve levels....................

My U.S. Sector ETF portfolio was started at the end of May in 2009. It started at 8% Cash Reserve. Here's the cash track record as of the 1st of the year each year since:

Year Start                   Cash Reserve           Previous Year Gain  
 2010                           26%                      +24.6% (financial crisis)      
 2011                           12%                      +17.2%                                
 2012                           13%                      - 0.7%                                  
 2013                           21%                      +13.2%                                
 2014                           30%                      +24.6%                                
 2015                           27%                      + 3.2%                                 
 2016                           27%                      - 5.2%                                  
 2017                           17%                      + 9.9%                                 
 2018                           21%                      +16.2%                                
 2019                           15%                      - 5.9%                                  
 2020                           14%                      +25.2%                                
 2021                           21%                      +13.6%                                
 2022                           18%                      +15.4%                                
 2023                           10%                      -11.6%                                 
 2024                           12%                      +16.2%                                
 To Date 2024                   16%                      +11.0%

A surprise here is the low cash at the start of the Covid Year and yet there was a portfolio gain by the start of 2021 of 13.6%, even with all that thrashing. Cash was spent down to just 10% of that portfolio by April of that year but was back up to 21% by the end of 2000.

2022 was a sour year for performance, down nearly 12% at the end. Starting cash of 18% was drawn down to just 10% by year's end. The work of rebuilding the cash reserve levels continues with a sale this AM in the Healthcare Sector. Overall, my cash reserve levels have been lower than the v-Wave and the MRI suggested levels. Like Dire Straits said, "If you want to run Cool, you got to run on Heavy, Heavy Fuel."

I've not subjected this account to regular withdrawals for living expenses so far. I did take out 5.5% of value at the end of 2000, however.

Best wishes,
OAG Tom