AIM RE-bal

[karw]

Hi 2mc,

Thanks for your program description.

I understand the average cost calculation(I think). You put the prices on a LIFO stack and when you sell you take some shares from the stack. The stock on the stack will be used for an average cost calculation.

Each sector fund has its own stack and its own calculation. True total cost is total of the stacks.

Understand that you wrote a program for this, this is not easily implementable in a spreadsheet. (I use a very, very simple limited stack for LIFO calculations in my AIM spreadsheets, and that was difficult to develop)

When you talked about the asymmetry in the Value/Cost ratios
you described a solution to this unwanted phenomenon. I assume that you based this solution on your Rebalancing experience. For me it is not transparent, so please can you elaborate a little bit more here.

I totally agree with your remarks about tweaking. Also the use of ETFs/sector funds is a very rational choice in my view. I hope my rebalancing experience will be as fruitful as yours.

Kind Regards, K