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

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To: JZGalt who wrote (6882)2/24/1999 8:12:00 AM
From: Bernie Goldberg  Read Replies (2) of 18928
 
Hi,
Dave your comments are always appreciated but you bring all sorts of complications into picking stocks that have nothing to do with AIM.
I was curious about your comments about the Mexico fund so I ran a few PCA sheets.
2yrs back to Feb 97. I'm going to have ask Tom what the IW recommended back then, but if you started with 46% stock and 54% cash and a $10,000 investment in an AIM program you would have a 6% profit on a stock that has dropped 20% in price. That is counting a $12 commission on every transaction. IT IS NOT COUNTING THE DIVIDENDS! which would be significant since you would have increased the number of shares by about 125%. Also it does not consider the interest on the cash reserve which is up around $6000 for most of the period of time.
Another PCA sheet started in Aug 98 with a 50/50 stock /cash startup shows a 6% profit with a stock that has decreased 6% in price. Con currently there is a 50 % increase in the number of shares.
Please Dave, if you want to talk about PE ratios, currency devaluations,MACD, stochastics, whatever, please do so but AIM is intended for folks with a simpler outlook on life and investing.
Bernie
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