A.I.M. Users Bulletin Board

[JoeForkeyBolo]

You make a lot of excellent points. For me, backtesting gives me great confidence in the AIM model, and has allowed me to add improvements to my spreadsheet model. I need great confidence in the model since I'm focusing on using AIM with 2x and 3x leveraged ETFs, which are higher risk but also provide greater rewards. Backtesting through several market corrections allows us to see how AIM performs. Yes, the decrease in portfolio value can be a lot during these corrections, but the recovery is quite remarkable because AIM has been buying a lot of cheap shares.

It comes down to a simple question: Do I trust the AIM method to handle things whatever is going on with the market?

We need to remember that Lichello's primary goal was to provide a systematic approach that removes emotion from the process and provides investment returns greater than the buy-and-hold strategy. If one cannot look at themselves in the mirror and confidently say they can let AIM manage things, that they will CHOOSE not to panic when the market is tanking, they should probably stick to dollar cost averaging or let a professional manage their investments. Professionals tend to not panic during these times like individuals do, and understand the long-term benefits of buying in a down market, just like AIM does.

I can honestly say I will confidently allow AIM to manage my investments through all market conditions. I have hundreds of hours of backtesting highly volatile investments trough good and bad market conditions that give me that confidence.

I've also started managing AIM investments in leveraged ETFs for several others, but only ETFs I have backtested. I have shown these investors how drastically the portfolio value can decrease in market declines, and they have to be committed to letting AIM work its magic during these times. We'll see how that goes. 😎 If they choose panic over confidence in AIM, I'll try to persuade them to stick with AIM, but ultimately it's their decision and they are responsible for the bad decision, which I'm sure they will regret when they see the market recover. My investments will be doing fine under AIM management.