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Re: Toofuzzy post# 4067

Saturday, 07/20/2002 9:45:17 PM

Saturday, July 20, 2002 9:45:17 PM

Post# of 48392
Hi Toofuzzy -

I agree. The great strength of aim is that it takes the emotion out of investing. But I wonder if you can accomplish the same thing by having good asset allocation. If your portfolio is tuned with a standard deviation that meets your risk tolerance and time horizon, then as one sector swings down another should swing up to help balance things out (i.e., good negative correlation).

I like everyone else am attracted to etfs b/c they remove stock specific events, and almost by definition have fairly good fundamentals thru diversification, but are they really volatile enough for aim? I don't think so for standard aim, but perhaps they may work for some aim variations, e.g., vortex aim, don carlson aim or 2mc aim. More homework to do.

Best Regards,

John

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