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Strategies & Market Trends : AIM Questions and Answers

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To: Nimbus who wrote (199)9/10/2001 6:52:00 PM
From: OldAIMGuy   of 221
 
Hi N, Regarding Split SAFE, I have historically used 10% on both the buy and sell sides with good success. Also, I change them infrequently. It was the very peculiar market conditions at the beginning of 2000 that forced my hand to change them to a very defensive posture. I kicked up the Buy resistance and let the Sell resistance drop to zero in many cases. This was to slow down buying and to encourage selling. I did this at about the time the Idiot Wave peaked at 59 or 60% cash being recommended.

I had stocks that before the blowoff in 1999 and 2000 had been selling at $4/share that rose quickly to $75/share. There was no fundamental change in the stock, so it seemed prudent to raise the Buy SAFE to the point it wouldn't buy shares back until the price dropped to near a pre-bubble level.

Certain stocks I feel have greater fundamental and "recovery" value than others. I'll sometimes use cash from the more fortunate to fund purchases of the less fortunate. Sort of the Carl Marx version of AIM! :-)

I feel there's about 4 or 5 areas of the economy that I'd like to have the majority of my "growth" money in. The other part of my portfolio is mostly for generating living income. So, it's not overly diversified. I don't usually change the ratio of what I have in each sector. I let AIM tell me where to go that way.

In recent years I've been building up the "energy" content of the overall portfolio when that sector has been out of favor. However, for over a year or so I've not been able to add much there. If the world economy softens a bit more, maybe I'll get a chance to bring it up to where I'd like it to be.

Best regards, Tom
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