Hi Ls7550,
Looking at the US PP and MEB, MEB's CAGR is 1.80 above the US PP.
Is the percentage also including the effect that when you sell and subsequently buy you get more shares?( Most of the time the buy price will be lower than the sell price).
Personally i would use Gold in stead of Commodities, the reason that a lot of the companies in VTI are well correlated with commodities and I remember that at the start of the crisis when AIG went under, there was a time that the future based vehicles couldn't be traded.( but with MEB you would be out)
So why not using a timing strategy with 20% VTI, 20% VEU, 20% IEF( or 12.5% BIV and 12.5% VGLT), 20% GLD, 20% VNQ in stead of using the PP?
Comparing MEB with AIM, you could say:
- that MEB is good in avoiding longer term downdrafts
- MEB is exploiting longer moves, where AIM would use Vealies.
- MEB captures less dividend but is in SHY for example while out.
- shorter term moves are better exploited by AIM than by MEB200.
Did you also run a test comparing MEB with standard AIM?
Kind Regards,K
