Replies to post #36617 on A.I.M. Users Bulletin Board (AIMUSERS)

[ls7550]

A conservative 20-80 stock/bond (cash) blend is generally better than an all bond choice. When AIM'd with the AIM LO settings it rode through some horrible times relatively well

SSO which is a 2x leveraged S&P500 index ETF, when AIM LO settings were used and starting at the 2008 peak prior to the 2008/9 financial crisis :



50% SSO, 50% TIP will generally track 100% SPY provided you rebalance back to 50-50 once each year.

So 20% SSO with cash in TIP could be considered as a form of 40% stock exposure. When AIM buys more stock however as prices decline, and perhaps gets down to 50% cash reserves remaining, that's like being 100% SPY - but you still have 50% cash reserves to call upon should the price continue lower.



I've uploaded some further details at http://tinyurl.com/bzegvqb to keep the entertainment going whilst aim-users.com remains down.

Clive.