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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: Jack Jagernauth who wrote (9601)	12/18/1999 9:19:00 AM
From: OldAIMGuy	Read Replies (2) \| Respond to of 18928

Hi Jack, I just hope my fraternity brothers don't expect 97% gains EVERY year!! :-) Re-reading Mr. Lichello's book after some AIM experience makes much of what he says more understandable. I remember noticing many things that I'd missed on the first reading. As always, experience is a great teacher. I was thinking about all the "simulations" of various AIM stocks and funds I ran with my ancient DOS Lotus spreadsheet. Each one taught me a little more about the basic business plan that Mr. L. gave us. At the time of my first experiments with AIM, my brother was still a broker with Paine Webber. He also read the book, having about 15 years of brokering experience at that time, and was impressed with the "logic" of AIM. George's clients were primarily Florida West Coast Retirees and very conservative in their investments. This was part of the reason that he looked upon AIM favorably. At the time, lots of these folks had huge amounts of money in 10 year CD's paying double digit yields. He saw the possibility of converting those CD's as they matured into AIM accounts. He saw the AIM accounts as divided between Cash and Mutual Funds as a conservative, low risk way to handle these people's accounts. I did a lot of work for him with mutual funds attempting to find the proper type and Equity/Cash ratio. It was during that time that I thought of splitting SAFE into separate components for buying and selling. Those early conversations date to around 1986. That's a long time ago! George would have enjoyed something like UOPIX, but would have probably considered it too volatile for most of his conservative clients! Another area of mutual fund development that's occurred since then was the proliferation of sector funds. These have proved to be very good AIM candidates. Pick the sector in which you feel the best possible returns will be realized over the next 5 to 10 years and then let AIM smooth the Sector Rotation lumps out of it. Best regards, Tom