Hi Keith, same here; I found the basket of stocks discussion very interesting from the point of view of spreading investment capital around, and AIMing a basket of stocks in a particular sector so that, hopefully, one of five stocks in the basket might be a real gusher.
I am curious about a couple of things:
1. What would be the problem with AIMing a basket of stocks from different sectors? Why wouldn't that work as well?
2. Let's say one were to track the individual stocks (making up the basket) in a separate Newport directory, take the total market value of the stocks in any given week, and divide by, say, 1000 shares to get a NAV for the basket. When one gets a sell signal and sells off shares of the stock that has gained the most, that sale might represent a significant percentage of shares owned in that one particular stock. I wonder how that might affect further tracking of that individual stock in the separate Newport directory, since it would be somewhat like taking capital out of an AIM account for that individual stock, because it is a huge sale in percentage terms.
Does this make sense, or am I dreaming about ghosts?
Regards, Jack |
