Replies to post #36896 on A.I.M. Users Bulletin Board (AIMUSERS)

[ls7550]

Back in 1984 I was finishing up studying for the Chartered Financial Consultant designation. In one of our investing textbooks I was introduced to what they called the "Constant Dollar" method of investing. Some call it "Constant Value".

Basically a person takes their initial investment amount and makes buys and sells around that value....always readjusting back to the original value with their buys and sells.

Hi Ray

AIM is a scaled up version of that, buying (selling) more the further the elastic is stretched. The negative is that, unlike constant value/weighted, you can exhaust cash reserves (but not stocks).