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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?


To: Ken Adams who wrote (18581)5/10/2019 8:21:54 PM
From: OldAIMGuy  Respond to of 18928
 
Hi Ken and Thanks,

Back around 2004 when ETFs first started to gain popularity I'd done a study on using a S&P500 index fund with AIM. It did remarkably well when compared to the fund itself thru the dot com bubble and 9/11. I'd then gone and found sector ETFs and tried AIM on each one individually and collectively. That improved overall results as the amplitude of price movement of the component ETFs was larger than the S&P index fund. Sector rotation also helped out back then.

While it was more work than just Buy & Hold or even just AIMing the S&P Index fund, the minor amount of extra effort was worth it. Time is the main necessary ingredient to see AIM's efforts realized. There were years along the way in that ten year history that B&H of the S&P 500 Index beat me. There were other years when AIM and its cash reserve insurance helped soften the downward spiral the markets were experiencing. If interest rates had been closer to historical norms, the results would have been better. However, I wasn't in control of FED policy!

With short term interest rates being above 2% now it is starting to contribute a bit to performance. Cash was a serious drag on performance for a long time. It was a very long time that inflation was well above the 13 Week Treasury coupon rate. It was only recently the treasury rate finally exceeded the CPI inflation rate.

I'm sure you did just fine with Vanguard along the way without too many grey hairs or wrinkles added.

Best regards,
Tom



To: Ken Adams who wrote (18581)8/24/2019 8:44:14 AM
From: OldAIMGuy1 Recommendation

Recommended By
Ken Adams

  Read Replies (1) | Respond to of 18928
 
Good morning Ken,

It was a while ago, maybe a year or so, that I added a "growth" component to my IRA. I chose RPG which is the S&P 500 "Pure Growth" ETF. While on a year-over-year basis it's not too different from SPY, it does offer a bit more spice and if viewed long term (10 years) is somewhat better than the pure S&P Index ETF.

stockcharts.com

Stretch the X-axis to see what I mean.

Best regards,
Tom