AIM UK

[lionhead0]

Hi Clive, RE: I-Box

Thanks for your reply and explanation with links! Now I know what's inside the I Box and how your ladder works. IMHO, you're on the right track with your modeling protocol. I don't think the V-wave is the best guide to use for the AIM cash reserve as it leaves out some components of stock returns.

Those components are: P/E ratios, dividend yield, earnings growth, bond market credit spreads (stocks vs bonds), inflation/deflation, and volatility. As you develop the I-Box you may want to consider the additional inputs.

I'm very much a "chart" person, as I like the visual presentation of data vs tables or spreadsheets. I've been a technical analyst for 4 years with much study into market cycles and proportionality. I think the I Box P/E or composite graphs likely follow the natural order of things re proportionality, thus secular cycles can be isolated from the trends.

Well, I can see I have my work cut out for me in developing the database for the P/E ratios. Since as you note, I wave has been taken private, the historical data will need to be done afresh whether using V/L or another indexing scheme.

Best regards and good luck with the I-Box. I'll be closely monitoring it as you display it. The ladder is an outstanding idea to make the cash reserve relative to the divd yield metric. Congratulations, you've pushed the envelope out in incorporating that into the I-Box!

Tim