Replies to post #8882 on A.I.M. Users Bulletin Board (AIMUSERS)

[Jennie]

Hi Rien-

<<risk is lowered AND returns are slightly better

I assume that this is valid for LTBH. And thus is also valid for AIM BTB (the "core" position is a LTBH position).

However I do not believe that this applies to all trading methods. Life simply is not that simple :-)>>

I believe your assumption is incorrect. LTBH has a higher SD than an appropriately diverse asset allocation and therefore more "risky". Just to make sure we are on the same page, "diversification" means assets that are as negatively correlated as possible, which in classic MPT means assets ( I favor ETF`s) that cover value and growth in both large cap and small cap plus fixed income and an international exposure at least.

I don`t understand at all what you mean by AIM as an LTBH position. And what do you mean by diversification applying to "all trading methods"?

Regards,
J