"You can also use these "cross-over" points to help determine when is a good time to start AIMing a "CEF." Again remember, not all CEF's close the gap between their price and NAV and ever sell at a premium to NAV. In those cases, you should then look at the size of the discount to NAV at various times. If the CEF ranges from -25% to -10% of NAV, then it would be best to wait until you again see near -25% discount before starting or AIMing."
This is again the heart of the problem that I have been discussing with Bernie. With a stock, a MF, or CEF that you intend to use AIM on for an extended period of time, i.e. 3 or more complete price cycles, it is easy to show that the difference between starting high or low is darned near trivial. Yes, it makes us 'feel' good when we have successfully executed a 'bargain', but our end results are far more dependent on how many price cycles we put on this AIM than our entry price.
OTOH, if this is a Buy n' Hold position, yes, wait until the item is on sale. Careful though, cause some things will go for a VERY long time before they go on sale. Even then, we may not be able to afford the entry price (see BRK.A)
Robert |
