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

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To: OldAIMGuy who started this subject3/27/2001 7:30:22 AM
From: OldAIMGuy  Read Replies (2) of 18929
 
In the last week I've been getting some really great email. One letter was an invite to The Motley Fool site, one was to a wonderfully contrary site and several AIMers who lurk here have written with ideas for AIM fiddling.

One idea was to eliminate or reduce the feedback to Portfolio Control. This would be for conservative investors who didn't want to "grow" their portfolios, but were content just to trade them. Several people have written to me in the last couple of weeks asking if and how covered Call options can be used with AIM.

I was pleased to receive a letter reviewing the results with UOPIX with several different options that I have at the web site. This person is using index funds of various types with AIM. Seeing how the "vealie" and SAFE adjustments expanded the risk envelope had given that writer a cautious warning relative to 2X funds. The letter shows that this person did more than just skim the page, but understood the risk and reward potential of a 2X equity and how expanding that risk was dangerous.

Another AIMers wrote and thanked me for including information on diversified mutual funds with SAFE adjustments and the "vealie" because they had been sadly disappointed that their funds hadn't yet started to respond to market moved on the Buy side. Reducing the Buy SAFE had finally gotten the funds to trigger a buy after about two years (or more).

One person wrote and said all the AIM stuff seemed to make lots of sense, but the Idiot Wave still was a mystery. Well, I guess it is to me as well! :-) I do find its cash reserve target to be a very good tool not only when starting a new AIM account, but also as a guide to where it's suggested reserves are relative to my own portfolio. I have to admit that this particular "bear market" has taken my reserves down further and faster than the IW's drop. This particular cycle has been hard on my heavily NASDAQ portfolio while the Idiot Wave has still to give us a Low Risk signal. Certainly the Idiot Wave's more conservative use of Cash has been good council this time around.

Late yesterday I gathered the data for this week's calculation. I have my team of thirty retired engineers with their slipsticks working hard at the calculation and we should have the results later today. Preliminary glance shows the Value Line P/E contracting nicely this week. Along with that, consensus opinion seems to still be decidedly negative according to the Hi/Low Logic index for NASDAQ. I'll post when I have the newsletter completed.

Best regards, Tom
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