Replies to post #41103 on A.I.M. Users Bulletin Board (AIMUSERS)

[ls7550]

Hi Allen

10% XIV, 45% SHY and 45% SPY

Counting XIV as a 5x, that's comparable to 95/5 stock/cash

https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2016&lastMonth=12&endDate=08%2F10%2F2016&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&showYield=false&reinvestDividends=true&symbol1=XIV&allocation1_3=10&symbol2=SPY&allocation2_1=95&allocation2_3=45&symbol3=SHY&allocation3_1=5&allocation3_3=45

20% XIV, 40% SHY, and 40% SPY

... is similar to 140% long stock https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2016&lastMonth=12&endDate=08%2F10%2F2016&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&showYield=false&reinvestDividends=true&symbol1=XIV&allocation1_3=20&symbol2=SPY&allocation2_1=30&allocation2_3=40&symbol3=SHY&allocation3_3=40&symbol4=SSO&allocation4_1=70

Obvious from those charts that multi-year drift can occur, but generally similar patterns and volatility. When one drifts from the other that deviation can be a sign that it might be better to switch from the leader to the laggard.

[Toofuzzy]

Hi SF

With AIM and XIV you want to trademore often than annually.

Owning 5 or 6 securities and rebalancing yearly is what I think of as SLOW AIM. It is what most people are told to do.

Toofuzzy