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

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From: OldAIMGuy1/9/2023 10:50:41 AM
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I had the luck to see this image posted on LinkedIn this AM and found the image most instructive for those of us who use Business Sector ETFs. Of interest in looking back at 2022 is how much variance there was from one business sector to another (+65% to -39%). This graphic shows several things: 1) room for reversion to Mean, 2) impact of weights per sector in the S&P 500 and 3) why using AIM to manage the S&P500’s Sectors can potentially be more profitable than just owning the SP500 Index fund.



If we'd attempted to out-guess the sector performance based upon history we could have done very well or very poorly with such dispersion! Certainly ignoring the Energy sector would have hurt. And, concentrating on the Info Tech sector could have also hurt. In general, for me, AIMing each of the sectors in a single strategy did well for me. I was still 'down' for 2022 but quite a bit less than the S&P500 itself.



ETFs have made sector AIMing easy and profitable for me.

Best wishes,
OAG Tom

Buy from the Scared; Sell to the Greedy.....
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