A.I.M. Users Bulletin Board

[Ganaraska]

Buy and hold is better than AIM if the market goes straight up for years and years without a reaction.

We actually had such a market in the 90s. For years B&H made a little better return than AIM.

There are other angles to it. For example, how often does the market go straight up for years in a row without a reaction? How do you know in advance when this is going to take place? And is B&H really better on a risk adjusted basis? AIM's protection of capital should not be overlooked.

When AIM makes plenty of profits in a bull market, just not quite as much, it may be worthwhile to accept a slightly lower return in exchange for safety and the ability to sleep nights.

There were attempts to improve the AIM algorithm by reducing cash reserves. This did result in better returns in certain circumstances.

Being "mathematically challenged" I don't know what is best to do. I'm sure there are better returns to be made, but I wouldn't throw over AIM's safety and capital protection lightly.