Replies to post #37976 on A.I.M. Users Bulletin Board (AIMUSERS)

[Toofuzzy]

Hi SF

Obviously in a roaring bull market, delaying sales is better. Do you still think we are in a roaring bull market? 20 20 hindsight is a wonderful thing. The standard aim settings are average, they will protect you to a 50% market drop starting with 50% cash. If you really know where the market is going, you dont even need aim and should trade options.

I dont even need to look at your choices. You should choose investments because you want to own them, not because they look good to aim. Diversify by either style or industry using index funds, not individual stocks.

Not always
Toofuzzy

[OldAIMGuy]

Hi Allen, Re: AIM performance....................

Is this an artifact of the bull market or is this a known behavior?

AIM doesn't have the ability to out-perform Buy/Hold during bullish periods because it doesn't have as many dollars at risk (out of total value including cash). It does well enough on a risk adjusted basis during these times, but total return suffers as the cash underperforms.

Each time the portfolio reinvests cash in replenishing shares it does some catching up with Buy/Hold. After a while it can move ahead of B/H and then rarely will fall behind again. However, it is the compounding of the reinvestment profits (LIFO gains) that builds the lead. If no market set backs occur, then AIM is perpetually behind even if less risky.

Best regards,