Replies to post #1414 on Advanced Automatic Investor

[OldAIMGuy]

Hi B, Re: Besting the SPX......

My long term test of using AIM with SPY showed significant improvement over Buy/Hold in total return and especially on a risk adjusted basis. My test was for most of the first decade of the New Millennium. I don't have the numbers handy, but at the time I ended that test, SPY was down about 15% for Buy/Hold and AIM's management of SPY was showing a positive 15%. Don't remember any specifics but that was the general story.

Even with its lower volatility compared to business sector ETFs, SPY offered enough movement during 2000 through 2010 to have AIM improve total return.

So much depends upon the start and end date that much of the idea of besting an index with a "system" is negated. In general, if a stock or fund drops about 50% and recovers to full value, AIM will improve return on that investment about 25% to 30% over Buy/Hold. Each cycle adds to that improvement. In smaller cycles AIM will add less, obviously.

Volatility capture is just one aspect of investing. There are many ways to work on it with AIM being a very structured and consistent one.

Best regards,

[ls7550]

Active investors cost themselves 1.2% by buying and selling at the wrong times. Financial advisor's tend to spend their time trying to convince investors not to follow their emotions - but to be more Spock like. AIM has a tendency to lead you towards being more Vulcan than human.