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Thanks Mark, The blended ingredients are what make

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OldAIMGuy Member Level  Sunday, 10/07/12 10:20:39 AM
Re: aptus post# 1401
Post # of 1452 
Thanks Mark, The blended ingredients are what make the overall business plan robust. AIM by itself is interesting but can act like an engine without a governor. Adding some other components that influence how the basic engine operates and then providing the proper fuel improves thing considerably.

Finally installing the engine in a proper chassis that can handle the potential performance is needed. Overlaying macro portfolio design, diversification, risk monitoring and selection has been the crux of my work for a very long time. One must have a robust chassis and a robust engine for best performance.

One of the "rebalance" activities that is done wrong is the timing of the rebalancing. Some use specific dates or anniversaries. The problem with that is if the markets are high at the time of rebalancing, then one is selling the highest flyers and buying more of other equities that have also risen in value. Potentially this leads to a "buying high" illogic for a portion of the portfolio. Letting either a market risk assessment or the buying activities of a diversified portfolio of AIM engines dictate when to rebalance seems to work better.

We'll have to discuss this more at another time.

Best regards,





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