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

To: RFH who wrote (10470)	3/17/2000 8:24:00 AM
From: Bernie Goldberg	Read Replies (1) \| Respond to of 18928

Hi Bob, Do you by any chance have the PCA system? I've done a little research and I would like to send send you something. Just curious about what would be the best way. Bernie

To: RFH who wrote (10470)	3/20/2000 8:54:00 AM
From: OldAIMGuy	Respond to of 18928

Hi RFH, Re: use of margin w/AIM. I've at times speculated as to what I'd do if the markets really took a hit and didn't recover for a long time. You know, what we used to call a BEAR MARKET!! Since nobody pays me to show up at work and talk smart to the secretaries around the water cooler any more, there's a real problem when I run out of cash! I'm not in an "earned income" mode any longer. AIM's no longer much fun in a bear market after the cash pot runs dry. However, one of the things I did to prepare for being 'unemployed' was to get completely out of hock. I carry no debt at all at VIEW. So, there's always the chance that in a protracted bear market that I'd first spend down all my cash, then dip either into Margin or mortgage my house (which ever is cheaper) and continue buying. It's hard to imagine such a possible situation these days since the market's been almost straight up since Aug., 1982. However, I was cogently aware of the market and involved with my few first pennies in the 1969 - 1974 Ultra Bear market and must be part elephant as I remember it like yesterday. Back then I didn't have any assets to borrow against. It would take a leap of faith to go into debt at my age with no alternate source of income! (It would take a bigger leap of faith for some banker to make the loan in the first place!) I don't think I'd be interested in a market that would actually test my resolve that way! I prefer the scenario of a perpetually rising market for the rest of my life!! Both are probably fantacy, but statistics are in favor of a rising market - that's why I invest in the first place. In Las Vegas the odds are against you, in the Market the odds are with you. If there were ever a responsible way to use margin debt, AIM would make good use of the borrowed funds. Imagine starting at about 50% Cash Reserve, buying until it was exhausted and then continuing the buying on margin! AIM would be doing its heaviest buying right when prices were really cheap. It makes the recovery all the sweeter because of the "leverage" effect. I don't recommend debt of any kind, I couldn't live the way I do with it. However, I can imagine a situation where it might tempt me. Best regards, Tom