AIM RE-bal

[jibes]

Hello Jibe (I notice there is a "jibe" and a "jibes," are these the same person?),

There is another fellow named jibe. I'm jibes. (boyhood nickname)

I believe your Re-bal technique will work with Automatic Investor. You can set up a portfolio containing 4 different stocks (you can actually have up to 50 stocks in one portfolio) and run it for a month. At the end of the month, buy and sell in order to rebalance. Then run it for another month and keep repeating.

Great! I think from my studies that 4 is the best number.

You'll have to calculate the amount of shares to buy/sell (and which stocks to buy/sell) manually.

Would it tell you how much of each to buy?

If the equity value doesn't change, after your rebalancing, then you're all set. Otherwise you'll also have to resolve what to do with the Portfolio Control when you make non-AI directed trades. AI allows you to manually adjust the Portfolio Control, so you can pretty much do anything you like in that department.

In my plan I use the amount of cash required each month (if any) and add that whether through aim or not. This maintains the AIM rule when buying.

jibes