Hi,
I first mentioned this to Tom about when I heard about it 3 months before it existed. Unfortunately I didn't have any extra cash to invest back then (July,98). It was up about 150% 180% for the year ending 12/98. It's up about 65% so far this year. You can't tell looking at MSN's graph because for some reason MSN didn't pick up on the 4 for one stock split that they did. The reason for the stock split was to get the price down in line with most of their other funds.
Anyhow along with the nice price increase this year I've had 4 buy signals and six sell signals since 1/1/99. My stock value has increased by about 33% and my cash reserve
has increased by about 65%. I'm currently sitting on 55%/45% stock/cash after my last transaction yesterday.
IMO the only way to go on this one is through ProFunds, forgetting about a discount broker. Profunds encourages active trading more than any other Fund Family. If you call them before 3:45 East Coast time you will get the closing price that day, not the next day as with all other funds and discount brokers. With this fund moving as much as it does (7.54% today), and 10% moves not being totally uncommon that is very important. By the way this was done using as plain a vanilla AIM as is possibel with this volatile issue. My transaction dates were 2/14, 4/4, 4/18, 5/23, 6,27, 7/11, 8/1, 8/22, 9/5, and yesterday, 10/29. There was one occasion when I could have done two transactions in one two week period but I passed it up. As I am sure you are aware I follow Mr. L's instructions as closely as I can.
They also have Ultra funds that match the S&P 500 as well as an Ultra Europe Fund. Quite frankly I am thinking of transferring more of my $$ into Profunds. I don't see the sense in the constant struggle to find stocks that work well with AIM, that is high beta stocks when these funds "guarantee" a beta of 2, and make trading so easy. I have to figure out how to compute the European Index, but the S&P 500 is a no-brainer.
Best of luck.
Bernie |
