AIM — Advisor & Investor Model
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Definition
A composite that combines the positioning/opinions of investment advisors and individual investors into a single sentiment reading, read contrarily at extremes. (Our own educational description of a SentimenTrader-style composite.)
How to read it
AIM blends survey-style measures of two crowds — professional advisors and retail investors — that have historically clustered in the same (frequently wrong) direction at turning points. When both cohorts are heavily bullish, the model reads extended optimism; when both are heavily bearish, extended pessimism. Read contrarily: joint extremes are the highest-conviction signals because they reflect broad consensus that leaves few marginal buyers or sellers. The model's usefulness rises with the agreement between the two groups and with how far the composite sits in its historical range. This is a generic educational description, not a proprietary formula.
How practitioners use it
Used as context among multiple indicators — never as a standalone signal to act.
Less common professional uses
Divergence between the two cohorts (e.g., advisors cautious while retail euphoric) weakens the signal — treat only joint extremes as high conviction. Survey-based inputs lag fast reversals; AIM confirms and contextualizes rather than front-runs sharp turns. As with all sentiment composites, trend can keep the reading pinned at an extreme; require a turn plus price confirmation before acting. Percentile-frame the composite; absolute survey levels drift over time and are best read against their own multi-year distribution.
Sources & provenance
Portal desk education notes (our own description of a SentimenTrader-style composite)
This page is educational content published by Pachira Aquatica Global LLC. It is not investment advice and not a recommendation.