Hi Ray and welcome to the AIM BBs.
As far as I can see, IOM has plenty of jump and jive to qualify for an AIM stock. I don't follow it myself, so take some time to study the fundamentals and make sure you're satisfied there as well.
If you are already involved with IOM, then turn to AIM to assist your risk management of the stock. It looks like it fell in sympathy with QNTM and some other stocks in that area.
For your 401K, you might want to use AIM for the existing account. You might want to check my list of stock funds that look good for AIM at:
execpc.com This will help you narrow your search.
For your ongoing contributions to the 401K, I'd suggest you use TWINVEST and pick another mutual fund that the one(s) you already own. Twinvest is such a good shopper, that it should help. Also, when you are ready to turn that new account into a new AIM holding, the cash reserve will already be there. Then start a new Twinvest account, etc.
Your 401K may have limits on how often you can make adjustments to the asset allocations. If so, that will determine what your frequency of updates will be. If you can make changes monthly, that's great. If Quarterly, you will still get most of the big market trends.
With AIM, mutual funds tend to wad up lots of cash over time. To counter this tendancy, I suggest that you use a Buy SAFE of 0.0% and a Sell SAFE of 10%. This will help considerably. It helps AIM to buy more aggressively when prices fall.
As a second measure for limiting the cash build-up, I suggest you use a ceiling for the Cash Reserve. If the mutual fund is a diversified one, then you can use the Idiot Wave's suggested level. However, if it's a sector fund, then you will want to use something a bit higher than the IW's suggestion for mutuals. Right now the Idiot Wave is suggesting that we use 34% Cash Reserve with diversified mutual funds. It's suggesting 51% for individual high BETA stocks. So for sector funds, you might want to shoot in between.
Please feel free to ask away here on the BBs. There's plenty of other folks that will be happy to help as well! Again, welcome to the AIM BB, probably the nicest group on the Web!!! (even if I do say so myself!!)
Best regards, Tom |
