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

To: OldAIMGuy who wrote (13429)	11/3/2000 9:25:52 PM
From: Steve Grabczyk	Read Replies (2) \| Respond to of 18928

Hi Tom: You only have to ask once with this group! From our FWIW dept.: #1) Yikes! Who wants to tackle measuring risk? It's just there. AIM reacts pure and simple. I almost seems that it takes advantage of others' current assessment of risk! I think this is why we 'buy from the scared and sell to the greedy'. I think initial stock selection is key to an AIM-er's risk assessment. Lichello said to buy quality. #2) Tom already answered this, but using a nice liquid bond fund like GSF adds a nice little kick to cash reserve (for all practical purposes). #3) AIM is certainly less frequent than the trading community out there. On the other hand, It's more frequent than Mr. B&H! My suggestion is to use a broker who fits your expected pattern. Bernie uses AMEX becuase he trades less frequently than I do and pays a small annual fee. I use Waterhouse because it's cheap for GTC's and there's no limit. As for Mutual funds, I think the newly created 2X set of funds like UOPIX are a natural for AIM. I've avoided AIM-ing funds (other than GSF) because my sense is that they are inherently less volatile (less risky?) than individual stocks. Now I think I'm going to do my daughter's Roth IRA with one of these (she's got a long horizon). Anyway......those are my from the hip comments.....again FWIW. Regards, Steve

To: OldAIMGuy who wrote (13429)	11/5/2000 8:22:45 AM
From: rgammon	Read Replies (1) \| Respond to of 18928

RE: Interested Party Tom, This is only slightly related to question #2. When he talked about using bonds vs money market funds to hold AIM's cash reserve, you and others appeared to think in terms of bond funds. My immediate thought was individual bonds, and puzzling out how I what would do to raise cash to make an AIM stock buy. So, the question back to the interested party is bond funds or individual bonds? Bond funds (closed end like GSF, or open end like Pimco Ginnie Mae) make it somewhat easier to trade smaller increments than $1,000. The problem as noted in Steve's reply, comes in that the inverse correleation between bonds and stocks is not very strong. At the macro level, with several sheets of cheesecloth between our eyes and the comparison graphs, yes, we can say that there is an inverse correlation. The devil is in the details. I suspect that a close examination will find situations when the bond fund is down along with the stock. Robert Mr AIM Aggressive