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08/17/14 3:32 PM

#37947 RE: OldAIMGuy #37946

Most excellent, Tom.

Great review and overview of AIM. My post was, to some extent at least, verification that AIM is an excellent approach but that situations vary and no system is perfect for all time or with all possible investments. The modern stock market is not at all like the original Dutch one. I'm sure AIM could have been applied to some of what went on with Tulip Mania and the later South Seas crash in London's stock market but would it have been the best, who knows?

My looking at things is to verify, and pass on what I learn, about how AIM works in today's markets and if any tweaks might work with basic "Sell High, Buy Low" approach of AIM. One example of a tweak that has been suggested, including selling in portfolio control, makes a lot of sense given the changes in taxation of capital gains income and how it is handled. And, of course, using "vealies" to keep from from hoarding cash that is not earning much in the current market, as opposed to when AIM was developed by Lichello where he figured ~5% income on cash. I'm doing real good when I get 1.76% with my credit union. Very different world these days.

BTW, do you have a more detailed explanation of how to apply vealies?

Thanks,

Allen