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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: doniam who wrote (11996)7/7/2000 12:05:23 PM
From: OldAIMGuy  Read Replies (2) of 18929
 
Hi DF, Well, it depends on the class of the mutual fund. If it is a diversified growth stock fund, I'd suggest 8% to 10% Sell SAFE and 0.0% Buy SAFE. This assumes that you're following the Idiot Wave's Cash reserve levels for mutual funds or a default 33%.

For sector mutual funds, I'd suggest that you will probably need to bring the Buy SAFE up to 10% as well. You can probably do fine with the IW Cash reserve level or 33%.

Finally if you are using one of the souped up Index Funds with 1.5X or 2.0X volatility ratings, you're going to want to use 10% SAFE on both buys and sells and increase the cash reserve levels to 50% or whatever the Idiot Wave is calling for on individual stocks.

For "growth and income" type funds, you can probably do fine with 8% SAFE for selling and 0.0% for buying. Here, you can reduce your Cash Reserve level to about 20% maximum and still have plenty of cash most of the time.

Hope this helps a bit,
Tom
PS: it doesn't hurt to go over this stuff once in a while - even if just to remind myself of it!!
PPS: I noted that SI now has a "Silicon Investor University." Maybe we should publish the collected wisdoms of the AIM Users for the university!! Any thoughts?
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