A.I.M. Users Bulletin Board

[AdamH]

Hello Tom, Thanks for posting the nice example of vealies with the mutual fund. My general feeling on this is that with LD AIM it's not enough for mutual funds and possibly with some ETFs. You will unnecessarily sell out. Perhaps raising the sell SAFE can overcome this. I have to run some simulations on this when I get some time.

With individual stocks and some ETFs such as IBB it's not safe to hold on when the stock rises, as you may lose all the gain. So you cash out some, and this is the principle of AIM. If you look at the chart of IBB over the last 5 years there is no net rise, so there is no point in holding it.

The same cannot be said for a diversified mutual fund, holding it on a rise is much safer, and it should only be necessary to sell when the rise in the fund exceeds an amount "expected". I would like to run some simulations to check this.

Adam