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


To: doniam who wrote (18523)10/20/2007 9:40:06 AM
From: OldAIMGuy  Respond to of 18928
 
Hi Don, Nice to see your smiling electrons again! Wow that's a scary story just in time for Halloween!

As much as it might have seemed that my brother and I were intellectualizing back then, we were both rather on edge.

A fellow I knew from when I sold capital goods called me on the 19th. He was about 1 year from retirement and we'd all received a big rollover retirement account when our company had been sold. He'd put it into solid mutual funds of the day and the value had grown for about two years prior to the "crash." He was an engineer, not an investor, and he was scared poopless.

He asked, "Should I sell it all even though I have no idea what I'll get?" I told him, "No, don't sell, just let the dust settle and you should be fine. At worst you'll probably give back some of the last two years gains."

He said, "I can't just sit. This is my retirement money."

I replied, "If you can't resist doing something, then just sell half, then you'll only be half wrong no matter how it turns out." He said he'd think about that. (see, I was already thinking like AIM, build a cash reserve!)

Since I no longer worked with this guy I didn't see him until the next summer. I was out golfing and ran into him. He said, "Don't even ask! I couldn't resist and sold it all, probably got the worst price I could have. And now because the market's started back up, I've been afraid to put the money back to work."

He and I talked for a while, but that was about the last time. It seems being right about something as emotional as the "crash" was more than our friendship could take.

Those were crazy days!

Best regards, Tom



To: doniam who wrote (18523)5/6/2008 10:45:10 AM
From: OldAIMGuy  Respond to of 18928
 
Hi Don, Re: Cash Reserve Indicator......................

For many years here on SI and also over on i-Hub I discussed my i-Wave Market Risk Indicator. An investment management firm in Springfield, MO (Walnut Capital Management) has purchased the rights to that history and all future data.

However, the AIM-Users have done a very nice job of creating a very workable substitute. I've restructured the Value Line thread here on SI to describe it and track it over time.

While it is meant to directly apply to AIM's cash reserve requirements for starting and also maintaining one's AIM engine, it can also be used as a very effective overall market barometer. Should you or any of your acquaintences have interest, please stop by at:
Subject 34752

Best regards, Tom