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

To: Steve Grabczyk who wrote (15783)	4/30/2001 7:29:54 AM
From: OldAIMGuy	Respond to of 18929

Hi Steve, After thinking about this during the Brewers game yesterday (in the new stadium, I might add!; pretty cool place to watch Baseball!) it should be stated that AIM functions to lower one's average cost through a series of accumulations when prices decline and by selling off some of the lower average cost shares during any recovery/rally. Yes, the individual LIFO gains on any particular buy-sell cycle always look very attractive. They do overstate the gains in the portfolio any time there's any cash reserve. The portfolio gain, for instance when there's 50% cash would only have been half of what the reported LIFO for the individual transaction shows. Another thing someone new to AIM might miss is that we're only realizing gains on a tiny portion of the overall account with the usual Sell trade. So, even if we show a LIFO gain of 50%, it's only a realized gain on maybe 5% of the account's value. I guess I like to wave AIM's banner in the best light available. LIFO seems to be a very effective way to state AIM's strength when compared to ST Trading. Also, AIM never sells on a LIFO loss. Best regards, Tom