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Strategies & Market Trends : A.I.M Users Group Bulletin Board
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To: OldAIMGuy who started this subject10/21/2000 8:49:35 AM
From: OldAIMGuy  Read Replies (2) of 18927
 
"Never underestimate what the market can do."
- Dean Lundell

To AIM with less than adequate cash reserves to
begin is to underestimate what can happen.

Each dollar of our reserve is designated for the
purchase of shares at a different price during
a decline.

Our money remains in interest bearing accounts
paying better than almost ALL stock dividends
until it is needed. In good market times, it
might look as though this money is idle. In bad
markets it seems too precious to spend.

The very first dollars spent by AIM will return
the same LIFO gains as the last. However, it's
the LAST dollars spent that earn the
greatest FIFO gain in the next upward market move.

We must always be thinking ahead. Our AIM
business plan tells us how to deploy our cash
reserves and when. We have to learn to anticipate
essentially the worst market conditions and have
reserves set aside for that occasion. If we don't,
we can only execute the first part of our plan. We
may make the happy LIFO gains, but not the deeply
satisfying FIFO gains. Like the difference between
romance and lifetime partnering.

If we plan ahead, set our reserves for as deep as
we feel we are willing to spend, we can then say
that we've done all we can. All that is left is
to have the resolve to stay with the plan. What
seems to be a cash anchor will at some point be
our umbrella.

Please remember that we don't have to buy all the
way to the bottom of the worst cycle. If we run out
of cash, then it means we just underestimated the
market. It doesn't mean we won't eventually prosper.

With AIM, we can run out of cash, but we will never
run out of shares. AIM lines up on the optimist's
side while respecting the pessimist.

It's then up to us to learn from our experience and
be better at estimating the future.

Best regards, Tom
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