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Non-Tech : QQQ - Nasdaq 100 Trust

QQQ 632.08

+0.5%

Nov 3 4:00 PM EST

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To: WallStBum who wrote (707)	1/3/2002 7:01:31 AM
From: OldAIMGuy	Read Replies (1) of 840

Hi WSB and All, As an alternative to straight Dollar Cost Averaging I'd like to suggest a method called Twinvest. It's quite similar to DCA, but each period reserves a portion of that period's allotment to a money market fund. This acts as a hedge. The portion of the periodic allotment that goes to cash varies with the price of the equity. If the price goes up, then more is allocated to the cash side and visa versa. Twinvest, then, becomes a better shopper than DCA. In the event that a severe break-down in price of the equity occurs, Twinvest then "borrows" from the accumulated cash side and buys extra value above and beyond the amount of the periodic allocation. So, at times of severe market stress it's buying 110% or 120% of the periodic amount. Twinvest is DCA with a brain. It's quite efficient. It can also be set up for a limited term of, say, 12 months or so when we have a lump sum we want to phase into the market. Here's a quick summary of it with the proper formula: aim-users.com Best regards, Tom

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