Hi Aimster,
I just saw your private message to me, but since I am not a paying member I could not respond directly to you.
Yes, I have the book. It is a very small book to begin with, plus the print is extremely large.....which I assume is to take up space. What he has to say in the entire book he could actually have said on just a few pages. That is, whatever cost you initially pay for a stock or fund then becomes your core position, or, as he calls it, your "Constant Value". Once the current value moves a predetermined amount, up or down, away from the Constant Value, you then buy or sell enough to once again have the current value equal to the initial cost of the stock or fund. He used an annual rebalancing if the current value had gained or fallen a predetermined amount during the year.
Bottom line, at least for me, it was not worth the price. Of course, this is just my personal opinion and others might find it very useful.
The reason this book was not very useful for me is because in the early 80s I was studying for a professional financial consultants designation. In one of the textbooks used in the first few courses of study, this particular method of dynamic asset allocation was adequately explained, with example graphs, on about 3 pages of the textbook. The textbook called this dynamic asset allocation method "Constant Dollar". Since that time I have read about this method in other investment books and it never took more than a few pages when it was fully explained. In other words, since I had already learned this method of dynamic asset allocation, I did not get much that I did not already know from this particular book. However, others might find it to be a very valuable and useful book.
Actually, when you think about it, Mr. Lichello's method of dynamic asset allocation is a sophisticated takeoff of this strategy of buying and selling around a core position. He modified the value of the initial core position by adding one-half of any subsequent purchase amount each time to the core position in order to buy more on the next purchase than the previous purchase, causing the core position to increase the longer one holds it and makes subsequent purchases. Thus, one takes advantage of falling prices (which hopefully will eventually recover). That, plus he used a resistance in the form of a SAFE factor, in order to be more conservative and restrained in the use of cash. I did find his book to be a lot more entertaining than most investment textbooks and it makes for some very enjoyable reading.
Best regards,
Ray
