AIM RE-bal

[JingLarry]

Karw & Matt:

I ran a test using Amazon which has fairly high volatility rate.

I used a similar formula to calcuate the Buy Factor/Sell Factor and Buy/Sell Amount using a LIFO cost basis. The results I had were OK but inferior when compared to Buy and Hold and even AIM (results not shown). What is your opinion?

In addition, like AIM we have a tendency to sell all our shares as the price rises; however, because we are using LIFO it create a tremendous threashold to institute a new buy signal after a prolonged price rise. For example, by the end of thest case, the porfolio had 69 shares with an average cost of $10.19. The current price had advanced to $18.78, which means we would need the price to drop substantially below $10.19 to institute a new buy signal.

Formula B&H
26-Mar-01 0.23% 0.39%
2-Apr-01 -8.90% -17.86%
9-Apr-01 28.77% 43.96%
16-Apr-01 32.18% 54.86%
23-Apr-01 31.47% 49.85%
30-Apr-01 32.90% 72.33%
7-May-01 30.91% 44.06%
14-May-01 30.94% 44.46%
21-May-01 32.57% 67.71%
29-May-01 32.48% 66.34%
4-Jun-01 31.61% 54.07%
11-Jun-01 29.40% 22.57%
18-Jun-01 29.34% 21.69%
25-Jun-01 30.54% 38.86%
2-Jul-01 31.32% 49.85%
9-Jul-01 32.50% 66.63%
16-Jul-01 32.50% 66.63%
23-Jul-01 29.23% 20.22%
30-Jul-01 29.16% 19.23%
6-Aug-01 27.65% -2.36%
13-Aug-01 27.67% -1.96%
20-Aug-01 27.84% 0.39%
27-Aug-01 26.95% -12.27%
4-Sep-01 25.94% -16.49%
10-Sep-01 22.42% -26.59%
24-Sep-01 13.85% -41.41%
1-Oct-01 25.64% -29.34%
8-Oct-01 33.97% -20.80%
15-Oct-01 33.40% -21.39%
22-Oct-01 29.09% -25.81%
29-Oct-01 20.94% -34.15%
5-Nov-01 24.87% -30.13%
12-Nov-01 42.40% -12.17%
19-Nov-01 43.39% -10.89%
26-Nov-01 57.66% 11.09%
3-Dec-01 59.18% 14.92%
10-Dec-01 57.30% 7.95%
17-Dec-01 54.65% -1.86%
24-Dec-01 57.04% 6.97%
31-Dec-01 60.61% 20.22%
7-Jan-02 58.44% 8.24%
14-Jan-02 56.89% -0.29%
22-Jan-02 64.51% 41.71%
28-Jan-02 63.92% 34.74%
4-Feb-02 62.92% 22.87%
11-Feb-02 63.66% 31.60%
19-Feb-02 63.38% 28.26%
25-Feb-02 65.30% 51.03%
4-Mar-02 66.10% 60.45%
11-Mar-02 64.17% 37.68%
18-Mar-02 65.42% 52.40%
25-Mar-02 64.40% 40.33%
1-Apr-02 63.73% 32.48%
8-Apr-02 63.57% 30.62%
15-Apr-02 64.59% 42.59%
22-Apr-02 66.56% 65.95%
29-Apr-02 66.35% 57.51%
6-May-02 66.57% 66.24%
13-May-02 67.12% 88.03%
20-May-02 67.20% 91.07%
28-May-02 66.89% 78.90%
3-Jun-02 66.98% 82.34%
10-Jun-02 66.54% 65.06%
17-Jun-02 67.03% 84.30%