But if you have two underline investments that move in opposite directions, such as the fixed yield long dated bonds versus stocks ???
Point taken, though you'll note that I did preface my remark, "Lichello insisted on for AIM is to have half of what's being used in a given program have a constant value." I believe the particular instance in the book was a Q&A when someone was suggesting substituting diamonds for the cash side. Since such funds and ETF's as we have nowadays did not exist when Lichello was developing AIM, he may be more amenable to your suggestion now, were he still here to consider it. Though I sort of think he'd still prefer cash from your brokerage sweep account as you wouldn't have to pay a commission on that as you would if selling TLT, for example. He did champion simplicity as a fundamental value.
Best,
AIMster
