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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: OldAIMGuy who wrote (8512)9/13/1999 8:23:00 PM
From: HighTech  Read Replies (1) of 18928
 
Just finished reading the book. I have read some of
the past posts here and Q&A too. From what I have
read, this is some of what I think I learned:
(Correct me if I'm wrong)

1. Follow the book except for:

Rising markets - AIM works better
when adjustments are made to the cash/equity
allocation from 50/50 to about 34/66. In the
current market environment, a 50/50 allocation
is too conservative and results in too much
cash on the sidelines and a buy-and-hold would
outperform an AIM 50/50 allocation. An evaluation
of risk is made to determine the proper allocation.

Selling - AIM sells too frequently in
a rising market so passes should be made. Is
this the "vealie" adjustment?

Tom:

What would really be helpful to me would be a
comprehensive example of how AIM
(as adjusted by "vealie" and other factors)
works. Perhaps someone could provide a
series of hypothetical transactions that included
various price assumptions. The effect of each
transaction could be shown in spreadsheet
format for buy/sell decisions. Adjustments made
to Safe, Portfolio Control, Buy/Sell Advice,
Market Order would all be illustrated similar
to the way Lichello did in his book. The only
difference of course would be a detailed
explanation of how the "other" factors change
assumptions about cash/equity allocations,
PC, etc.

I know this would be quite an undertaking for
someone but I sure would appreciate understanding
how this "modified" system works under various
market conditions.

AIM sounds a lot like what I am currently doing in
my own investment accounts, where I do it more by
the seat of my pants. <g>

Thanks,

HiTech
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