Replies to post #33691 on A.I.M. Users Bulletin Board (AIMUSERS)

[ls7550]

Steve, if you weighted 34% GIEW and 66% into 5 year treasury's then



with yearly % gains of



5 year treasury's can be emulated using a 5 year treasury ladder i.e. equal amounts in each of 1, 2, 3, 4 and 5 year durations and each year buy another 5 year duration with the proceeds of the most recent maturing treasury. With such a treasury ladder you hold cash like risk (treasury's held until maturity so you get back the face value), 2.5 year average duration volatility, but benefit from the average of the 5 year duration yield (once held for 4+ years).

If instead of the fixed 34% weighting of GIEW holdings you adjusted the GIEW exposure more dynamically over time (something like vWave perhaps, or a sort of portfolio AIM of GIEW AIM's) then potentially the rewards might be improved further. If GIEW continues to bounce around as it has in the past, I suspect expanding and contracting exposure over time could really boost your annualised and perhaps avoid the need for any stop loss type mechanism.

That might mean fewer individual stock AIM's being held, but that needn't be a bad thing as with say only 7 instead of 21 and each being limited to buying only once per month, the maximum of total funds injected in any one month would be perhaps 7% instead of 21% assuming that 1% of total fund value amount was being bought/sold at each AIM trade signal.

Best. Clive.

[The Grabber]

Hi Clive

Just a friendly well intentioned nudge towards something that you might like to look into.

Pretty interesting stuff Clive. I'll have to study it. I know that GIEW is pretty volatile, but have tended to compare it's performance to the 4 major indices. And that seems to be pretty good.

I don't know what the Coffee House Portfolio is, so send me there if you please.

I get the impression that when you get sales often you immediately reinvest those funds in other candidates, maybe starting new AIM's?

Not really. At least I don't intend to. I have opened new programs when relatively flush with cash (much higher than normal levels). That has happened, but not because I had the cash as much as I wanted to open more programs and was finally able to do so.

Funny you bring this up right now as I am about to post final January results, and owe jtw the annual results as promised earlier in the day.

Thanks! And for the record, I'm rarely offended by well intentioned nudges. An elbow to the ribs or a kick under the table always works for my wife. Yours hurts less. :-)

BTW: I just saw your follow on post.

Can't say I'm much interested in doing the ladder thing. I do have other long term investments, but only talk about my AIM stuff here.