Advanced Automatic Investor

[aptus]

Hi Conrad,

Nice to hear from you again. It's been quite a while.

"The question about the automatic update on the PC when extra cash is injected caught my attention. I find the automatic update not logical."

I'm not sure why you find it illogical as it seems logical to me. Not adjusting PC also seems logical. So it's not a case of black and white, just how you decide to implement the adding of cash.

However it is very logical to force a PC update if you are following the Lichello's AIM BTB alogrithm and it is illogical to not do this (again, if you're following BTB AIM).

That's because Lichello plainly states that when you add new cash, you MUST purchase equity and adjust PC.

At the end of the day, this point is somewhat moot as AI allows you to reset PC or use the Add Interest/Dividends function so PC is not adjusted. Therefore if you disagree with Lichello, AI allows you to go your own way.

On the other hand, for new AIMers (who might not know the ins and outs of adjusting PC), AI ensures they follow the BTB algorithm.