Replies to post #40369 on A.I.M. Users Bulletin Board (AIMUSERS)

[SFSecurity]

Hi Is7550, Your PS is most interesting strategy. It certainly makes sense to not have non-earning cash sitting around. The only real question is being sure you use your cash for something that is likely headed up in any given market cycle. Overall gold has lost money over much of the last several years (-4.3% real returns over the last 5 years according to https://www.bullionvault.com/guide/gold/Annual-asset-performance-comparison) so one has be careful.

However, a longer look at performance may actually be the wrong one because, as the brokers say, past performance is no guarantee of future performance. Truly a roll of the dice craps shoot that one hopes to load the dice with a bit of research and seeing how others are behaving.

Best,

Allen

[karw]

Hi Ls7550,

I have started a test spreadsheet from 1 January this year, where an equally weighted linear combination of SHY,TLT,IAU is I-Aimed by VTI.

We have volatility in both 'equity' and 'cash'. The volatility of the 'cash' part moves the hold zone also quite a bit.

Also I want to compare this to VTI L-Aimed by the SHY,TLT,IAU combo, where volatitily is algoritm-important in the 'equity' part
but more passive in the 'cash' part.

Want to see how this develops.

Best Regards,K