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

To: Bernie Goldberg who wrote (15405)	3/28/2001 8:14:11 PM
From: LemonHead	Read Replies (2) \| Respond to of 18928

Hi Bernie, let it have the advantage of starting with a clean slate. FWIW, I agree... But I'm surprised that you didn't call for a 50% Cash Reserve? When the Pundits call for a Bottom, I assumed they were talking about the floor that I'm standing on. But now it seams they are talking about a dark hole in the ground, that has know bottom. Well 1800 more points & we will have a bottom. Keith

To: Bernie Goldberg who wrote (15405)	3/28/2001 11:29:04 PM
From: OldAIMGuy	Read Replies (2) \| Respond to of 18928

Hi Bernie, I beg to differ. If we assume that Duke started with a $20 stock initially and it's now worth just $10/share, your method would have him AIM trading at a loss for some time to come. Yes, if the stock remains cyclical during the coming period of time it would by LIFO gains eventually make up for the FIFO losses. If he started up the account based upon the $20 initial position, added adequate cash reserves, AIM would immediately have him just about double his position at the $10 level. This would do a far more effective job of lowering the average cost per share and much more quickly. It really depends upon what amount of cash can be thrown at the initial investment and the confidence in the equity's recovery potential. If it's good quality, why not let AIM do what it's best at, averaging down? Respectfully, Tom