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

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To: OldAIMGuy who wrote (13429)11/5/2000 8:22:45 AM
From: rgammon  Read Replies (1) of 18928
 
RE: Interested Party

Tom,
This is only slightly related to question #2. When he talked about using bonds vs money market funds to hold AIM's cash reserve, you and others appeared to think in terms of bond funds. My immediate thought was individual bonds, and puzzling out how I what would do to raise cash to make an AIM stock buy. So, the question back to the interested party is bond funds or individual bonds? Bond funds (closed end like GSF, or open end like Pimco Ginnie Mae) make it somewhat easier to trade smaller increments than $1,000. The problem as noted in Steve's reply, comes in that the inverse correleation between bonds and stocks is not very strong. At the macro level, with several sheets of cheesecloth between our eyes and the comparison graphs, yes, we can say that there is an inverse correlation. The devil is in the details. I suspect that a close examination will find situations when the bond fund is down along with the stock.

Robert
Mr AIM Aggressive
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