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

To: rgammon who wrote (17119)	10/19/2001 10:24:00 AM
From: Bernie Goldberg	Read Replies (1) \| Respond to of 18931

Hi, It is nice to know that we agree in the first two paragraphs of your post. Believe it or not it is also nice to know that we disagree in paragraph three. You wrote:"Now, this is where my point is being made. Our intent is to add a fixed income component to our portfolio, a holding that bridges the foundation and the middle layers of our investment pyramid. This component is one that we will grow using our AIM tool. The income will be used to fund other investment choices. We have carefully examined the volatility and made choices for SAFE, min trade, and Cash Reserve that seem appropriate for this investment. We have made our choice on trading frequency. Now, we only need to select our entry point. The math of AIM tells us that our entry point relates only to the size of our cash reserve at the start. 4 or more cycles later, we'll be at essentially the same point, regardless of what price we chose to make our initial purchase. Your items of importance for selecting this fund are: #1 Income #2 Volatility #3 Trading Frequency #4 Entry point. You don't seem to worry very much about what the fund is investing in at all. You make absolutely no mention of that in your selection criteria. AIM however is very definite about selecting quality merchandise when you invest. Let's talk about two different CEFs, each having exactly the same investments in its portfolio. We will call them Fund A and Fund B. Fund A is selling at a 10% premium and Fund B is selling at a 10 % discount. Which one would you purchase? This is a simple question which deserves a simple answer. I will hold any further comments until I receive your response. Bernie

To: rgammon who wrote (17119)	10/21/2001 9:40:28 AM
From: JSLyons	Read Replies (3) \| Respond to of 18931

Hello Robert, I've been following your discussion with Bernie with interest. You've made the essential point that proper use of AIM removes the uncertainty of entry points into the market, that over enough time and cycles AIM will sort out a purchase that was too 'high' or too 'low.' Now, my question to you. I have been AIMing a basket of tech stocks since Christmas. This was a conservative transition phase from my earlier by-and-hold approach, which I abandoned after being won over to AIM by my own accidental use of some of the techniques and my discovery of Mr L's book on the subject. So far, so good. AIM has done its job and I have had several sales and buys, although my results, while more than acceptable, would have been better had I treated each stock as an individual AIM account from the outset. I did not because I wanted to learn more about AIM first. I am now ready to disaggregate the shares into unique AIM accounts. What price should I use for the starting point? Current levels? initial buys? Some other level? Clearly the decision will shape the initial AIM programs, determining whether transactions are needed immediately or not. BTW - I have the cash reserves to handle either approach. Your analysis suggests it really doesn't matter over the long run. I'd like your thoughts, and those of the rest of the thread, on how best to proceed. All bests, Jonathan