Hi Keith; Both Tom and Robert Gammon had suggestions on how to begin again implementing AIM on accounts where the cash was long gone, and the first sell point was a long, long, way away.......you can check the posts of late December, I believe. Both approaches had merit.
I, as most of us probably do, have the same situation in a couple of accounts....what to do....my accounts are tax-free, so no benefits of tax-loss selling to raise cash to start the AIM process at a lower level.
My conclusion was it depended on this consideration: If one believes that the account will NOT reach the old levels in a reasonable amount of time (reasonable in the eyes of the AIMer), but instead remain in a trading range below the AIM buy/sell range.....then perhaps it is wise to raise cash by selling some of the stock at a loss, and start AIMing at a lower level.
If one believes that the account will return to old levels in what IS an acceptable amount of time.....then, sit on the account until it recovers.
I happen to think that the NAZ will be at new highs within two years....that is an acceptable amount of time to me...but new highs may not be seen for longer periods, in which case I will probably wish I had done something else.
Other than an infusion of new cash to AIM at these lower levels, I don't know of another way....I join in asking for more creative ideas that some may have...
Regards, Bud |
