A.I.M. Users Bulletin Board

[OldAIMGuy]

Hi again Bugkiller, In the short run AIM has a hard time beating the lump sum investor because a portion of its assets are underperforming as Cash.

For the same reason, AIM has the ability to outperform the lump summer in the long term. AIM's Cash Reserve when put to use returns about 30% between a buy and a sell. So, if the cash is utilized a number of times through cyclical markets, it can help build a portfolio larger than the lump summer's. This takes time, however. The more cycles the further ahead AIM usually is.

The '80s and '90s were unusual times and hard on AIM. With very few major market cycles over essentially 18 years, AIM dragged along a large Cash Anchor for much of the time. However, when the stormy season finally came, the cash was well utilized.

More typical market cycles would give AIM a greater advantage.

Best regards, Tom