SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : A.I.M Users Group Bulletin Board
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Steve Grabczyk who wrote (9816)1/4/2000 1:14:00 PM
From: OldAIMGuy   of 18928
 
Hi Scott and Steve, With GSF, you are gaining quite a bit in yield, but are increasing your risk somewhat as well. It's my personal belief that GSF has been beaten down about as far as it can be for this portion of the interest rate cycle. It would appear that whatever the FED does, it is already priced into GSF.

There are others besides me using GSF as its own AIM account. I recommend keeping about 10% to 15% liquid cash reserve for such an account. Then in times like we've had for about 18 months, you can accumulate shares of this high yielding fund. Other times you can part with a few to replenish your cash by taking a nice capital gain.

For a temporary haven for money to be invested, GSF should work okay. Remember that it's not a money market fund and that all of it might not be there the day you decide to use if for another purpose.

Several people are using bond funds of various lengths as a portion of their cash reserve to improve the overall yield. I'd recommend keeping 1/3 to 1/2 of the total Cash Reserve in money market funds where there's no hesitancy to use it for buying stock when AIM says to. Then if you exhaust that portion of the Reserve, maybe you'll say it's okay to take a small loss on the bond fund to buy a stock that's deeply discounted at 30% or 40% off its previous high.

I currently take my dividends in cash on a monthly basis as I use it for my cash flow needs. However, there's no reason not to have them reinvest the dividends if you are fortunate enough to have a job!

Best regards,
Unemployed in Union Grove
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News