A.I.M. Users Bulletin Board

[The Grabber]

Hi Adam.

I'm not necessarily defending the points made in the article. Rather, I only said it was 'interesting'.

And, what was most interesting to me was that there is likely an unintended consequence of this 'high correlation' noted in the article.

And that the final conclusion was that there are likely numerous high quality, yet undervalued 'gems' mixed in within the whole ETF universe. So there was likely higher price appreciation opportunity with those than the broader ETF mix of both 'good' and 'bad'.

I'm pretty sure it will not change anything about how I 'roll' AIM-wise. I look for undervalued individual stocks anyway.

Also interesting is your comment:
I think for the individual trying to find undervalued stocks is very difficult

Not with the wealth of information available nowadays.

one could very well end up with dead basket of stocks waiting to move up. And of course you could make some mistakes, so some of your "good" stocks will turn out to be turkeys.

Of course! That is true for everybody! Even the 'best' MF Managers (who routinely underperform the market), or any flavor of ETF which simply mirror the market they are built around.

As an individual, I figure I have as good (or maybe better) chance of doing better than either of those. Of course I've been accused of being too optimistic.

But, I use LD-AIM (higher ROCAR over time versus Classic AIM and certainly B&H); spreading the risk over a well diversified set of holdings.

I'm comfortable with it.