Hi RFH, By the end of our AIM 2000 meeting I'd done
my best to wear everyone out. However, did you take
note of Paul Rodgers' comments on the Idiot Wave?
He has written me on the details of his method
of "switching" from equity to money market funds
using the Idiot Wave as his signaling device.
Here's his letter................
DEAR TOM,
I WILL SHOW YOU THE BUY AND SELL SIGNALS THAT WERE
TRIGGERED BY YOUR IDIOT WAVE.......THE OBJECT OF
THE GAME IS TO ALWAYS BE IN MUTUAL FUNDS THAT
MIMIC THE NASDAQ EXCEPT WHEN THE IDIOT WAVE IS IN
HIGH RISK......AS A "NERVOUS NELLIE" INVESTOR I
CALL IT THE "NERVOUS NELLIE IDIOT WAVE MUTUAL FUND
TIMER".....
REMEMBER THIS WAS DESIGNED BY A LURKER FOR
LURKERS WHO ARE SO "GUTLESS" THAT THEY ARE TOO
AFRAID TO BUY A STOCK AND PREFER TO BUY FROM
A "SCARED" MUTUAL FUND SELLER AND SELL TO A
"GREEDY" MUTUAL FUND BUYER....
DATE BUY SELL GAIN ACCOUNT
08/27/82 177 $10,000
05/20/83 303 71% 17,100
07/27/84 229
04/03/87 437 91% 32,661
11/20/87 312
10/22/93 772 147% 80,672
06/24/94 693
12/06/96 1287 86% 150,051
04/11/97 1206
08/01/97 1594 32% 198,067
12/26/97 1511
03/30/98 1823 21% 239,661
09/04/98 1499
01/25/99 2338 56% 373,872
03/01/99 2288
06/21/99 2563 12% 418,736
08/09/99 2547
12/20/00 3753 47% 615,543
PLUS INTEREST FOR 50 MONTHS 22% 750,962
OUT OF THE MARKET @ 5%/YR
AVG ANN TOTAL RETURN/YEAR 27.5%
BUY & HOLD 18.5%
-------------------------------------------------------
...... CHECK IT OUT AND SEE WHAT YOU COME UP WITH
..I THINK YOU HAVE DEVISED QUITE A TIMING SYSTEM HERE
.....LET ME KNOW HOW YOU COME OUT...
IT SHOULD BE NOTED THAT A.I.M HAS ONLY 50% TO 70%
AT RISK WHILE THIS HAS 100% AT RISK WHEN INVESTED...
SO IN THAT SENSE IT IS HIGHER RISK THAN IF IT WAS
USED IN CONJUNCTION WITH THE IDIOT WAVES RECOMMENDED
% AT RISK....
IT IS AMAZING THE ROAD MR. LICHELLO HAS SENT US DOWN!!
BEST REGARDS,
PAUL RODGERS
P.S. RATHER THAN USE A MUTUAL FUND THAT MIMICS THE
NASDAQ I THINK IT WOULD BE EVEN MORE "GUTLESS"
TO USE THE RYDEX NOVA FUND WHICH ONLY LEVERAGES
THE S&P 500 BY A MEASLEY 1.50%!
----------------------------------------------
It is because of his superior returns over time
that I am officially resigning as AIM BB leader
and am throwing the nominations open for a new
Guru! In retirement as Guru, I'm moving from the
Top Floor of the Gantner/Norman Insurance
Building to a small office in the back of the
building on the main floor. As a retired Guru
I'm always glad to see one of my pupils go on
to explore new territories and go beyond my
own limits.
Best regards,
Humble in Horicon |
