Complete with prices, market analysis, data and news modules, technical analysis and charting functions. When I looked at AIM when the book came out, my conclusion was that it was great for sideways markets (or a sideways stock), but not for trending markets/stocks. Without doing the analysis for 1993-2000 I would speculate that AIM would have you selling during the ascent, which is not really missing the climb more than taking profits off the table as the market rises.
You would enter the market at this point buying the number of shares that created the portfolio control to rise. He started out very conservative after the bear market maulings of ’69-’70 and ’73-’74. Later editions cahanged it to 2/3 stock 1/3 cash reserves, and finally 80% stock 20% cash reserves. One caution, with high Beta stocks, you run the risk of depleting your cash reserves as the stock trends lower than a more stable stock.
In a market that is in a prolonged downturn you will always run the risk of depleting your cash, especially if you are checking frequently (weekly or bi-weekly). I will buy into my company stock and then when it’s up, shave off the profits to a stable fund, almost like a money market that we have. It would not surprise me if from 1929-1932 AIm would have made money based on the Dow because the market was so volitile.
But my thinking was once the account got to big there was no way I would be able to keep up with the obligations needed in a down market like 1929-1932. I agree that Spy is one of the better choices because lesss chance of going bust but a 90% or greater crash it is possible that it could. It is obvious that with a high holding zone more cash can be invested at the bottom price but a 40 % holding zone would eliminate all trades if the stock starts cycling in a low volatility horizontal trading range. I witnessed people saying what a horrible place the stock market was to invest.
I think there is only one stock ticker SPY, don’t know why Yahoo history would be different than AOL. In theory you could start an AIM account with only $500, however, I would suggest that you start with an exchange traded fund (ETF) instead of stock of a single company. The reason is that the chances of an ETF going to zero is very small compared to the stock of a single company. Just as a single stock can go to zero (Enron, WorlCom, etc.) so can the unerlying options.