AI
Tuesday, February 22, 2011 6:30:55 PM
Hi Clive:
classic AIM automatically steers more of funds out of stocks and into cash.
I don't think that is the way RL's 10, 8, 6, 5, 4, 5, 6, 8, 10... ends up.
I don't have that in front of me but I seem to remember that the % of holdings bought or sold remained the same at each price as that cycle repeated itself over the 6 years in his example. Of course since PC never dropped, those transactions got huge! Compounding is a wonderful albeit 'scary' thing.
Now what you say may actually be true in real life though. If so, that may explain why AIM programs tend to slow down (my observation) ater a few cycles.
Also, we must all be bad stock pickers because all we seem to talk about is not having enough cash, not too much!
classic AIM automatically steers more of funds out of stocks and into cash.
I don't think that is the way RL's 10, 8, 6, 5, 4, 5, 6, 8, 10... ends up.
I don't have that in front of me but I seem to remember that the % of holdings bought or sold remained the same at each price as that cycle repeated itself over the 6 years in his example. Of course since PC never dropped, those transactions got huge! Compounding is a wonderful albeit 'scary' thing.
Now what you say may actually be true in real life though. If so, that may explain why AIM programs tend to slow down (my observation) ater a few cycles.
Also, we must all be bad stock pickers because all we seem to talk about is not having enough cash, not too much!
Best Regards, Steve (The Grabber)
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