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

To: JSLyons who wrote (17262)	11/9/2001 7:16:38 AM
From: OldAIMGuy	Read Replies (1) \| Respond to of 18928

Hi Johnathan, In the very last chapter of Mr. Lichello's revised book he mentions splitting off some of the cash to some short term bond funds to improve yield. Of course there's always the risk that the bond fund might be down in value/share on the day you want to "spend" it doing AIM buying. The shorter the term of duration on the fund the safer you tend to be on this. ACG tends to own primarily 30 year paper and therefore has much greater volatility than a ST bond fund. It's therefore unsuitable as a Cash Reserve substitute. The yield on the Cash Reserve is way down from not that long ago. However, it's still higher than the average Value Line stock which is paying just 2.0%. So, if you invested in an "average" stock and collecting the dividend in a flat market you'd not be doing as well as if you were in Money Market Funds right now. The cash's real value is in its Purchasing Power and what those dollars return when later they're taken back out of the market. Yesterday both QQQ and JBL clicked off AIM sales. Those dollars went to work just after the WTC attack. Some of those dollars were just returned to the Cash Reserve with about a 30+% gain included. They can now afford to rest on the sidelines for a while. Like a good football coach, AIM rests its good players once in a while! Best regards, Tom

To: JSLyons who wrote (17262)	11/9/2001 11:40:02 AM
From: Bernie Goldberg	Read Replies (2) \| Respond to of 18928

Hi Jonathan, I think you misunderstood me. The REIT I mentioned was HR which I have owned since March of 1999 and have been AIMing since December of '99. My annual rate of return on it since that period of time is 25.48% including dividends. Cash Reserve has increased by 100% from the small amount I started with which was 16%. Since the Fed tightening has decreased MM returns to such a degree I was forced to look for alternatives to increase the income from my cash reserve. I have taken 75% of the HR cash reserve and put into the HR Preferred stock. It is paying a 9.09% dividend. If HR should drop by 32% from its current level to 18.75 there is enough cash left in the MM to cover the cost of the AIM purchase. I would then have an entire month to sell some shares of the preferred if necessary to raise more cash. In the interim the preferred stock will be raising cash at a faster rate. My annual rate of rate of return YTD for HR and HR_PrA combined is over 36%. Which is a lot better than I am doing with my Hi-Tech issues. Bernie