Replies to post #1292 on Advanced Automatic Investor

[Toofuzzy]

Hi Chris

>>>>Seems like you want more volatility then a market that goes straight up<<<<

I assume you are talking about AIM?

The purpose of AIMing is to take the emotion out of owning stocks (ETFs and funds are safer) and force you to sell as they go up and buy as they go down. If you have a long run you may achieve 80% cash but wouldn't you want to be in that position in 2000 or 2007?

AIM is the only method that I know of that doesn't try to predict the market but just reacts to it instead. With other methods you are buying because you THINK it will go up or selling because you THINK it will go down.

Have you been on the AIM board and Tom's website www.aim-users.com

Toofuzzy

[aptus]

Hi Chrismac,

AIM won't beat B&H in a market that goes straight up. However there is no market that goes straight up over the long term. So it's best to think of AIM as a long-term investing strategy.

Some people use it with a shorter time horizion in mind, but I've found that you need at least 5 years (on average) to really start seeing AIM work for you.

If you're interested in a shorter-term strategy, I'd recommend something other than AIM.

I hope that helps. Please feel free to post any other questions.