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Strategies & Market Trends : A.I.M Users Group Bulletin Board
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To: Jerry Mills who wrote (9500)12/8/1999 7:34:00 AM
From: OldAIMGuy  Read Replies (2) of 18928
 
Hi Jerry, I, too, am using 5% SAFE (Resistance) on both the buy and sell sides with GSF.

For years I'd been able to get away with about 12% max. cash reserve for this fund. However, I bought quite a bit more of it during the last 12-18 months with cash generated from other investments that were bought out for cash. Because of this, now my minimum orders are getting rather large. This fact and the declining price of GSF drained the Cash Reserves I had and so I've been doing the more recent buying with cash "borrowed" from some other more prosperous AIM stocks. I like being my own "banker" in such a case. :-)

I may expand the SAFE range to 8% or 10% for both sides, however, I hate to change what has worked for all but this most recent bashing. I started accumulating GSF in my own account as far back as '93. However, I'd used it as a part of the mix of investments in a charitable trust that I managed in the late '80s and early '90s.

The worst case would be if both the bond fund and my stocks were down simultaneously. This can happen. Then I wouldn't have the spare cash to "borrow" for GSF!!!

The main thing to remember with GSF is that the long bond cycle is a very slow moving thing, so we don't need to rush our orders. It could be argued that we should only make an AIM directed buy or sell once a month or once a quarter, since the sine wave of the long bond funds is so somnambulant. This certainly would have allowed efficient use of the Cash Reserve. With a slow moving target like GSF, we don't have to rush our AIM and pull the trigger too soon or too often. :-)

Best regards, Tom
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