Hi 'Takr, It is amazing how many problems AIM addresses. I've been reading Sun Tzu's Art of War again, this time a translation done in the early 20th Century by an Englishman. Our battle to win profits from a tricky market is a difficult enough one when faced without a plan of attack.
For some it's time to get the Gut Wrench out when prices are sinking along with Cash Reserves. For others, it seems that tool is used to adjust our Greed feelings! Over the years I've heard some say that AIM's too greedy in wanting a 30% LIFO gain. I've also heard that AIM doesn't wait to sell until the market "tops out" and isn't greedy enough!
In finishing up a study of ten Dow Jones sectors for a decade or so of AIMing, a lovely picture forms. It shows continuous rising value and cash reserves. It then shows excellent re-deployment of that cash into a market that's diving for cover. To me this makes perfect sense.
Some of these sectors are pretty boring. Utilities only generated a 14% Buy&Hold gain over the entire time frame (but doesn't include the dividend). U.S. Financials actually turned in the best return for Buy&Hold and AIM. I want to compare this study to something like Vanguard Index 500 to see how it did.