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

To: jaser20 who wrote (18721)	1/17/2022 4:35:01 PM
From: OldAIMGuy	Respond to of 18928

Hi Jeff, Re: Is that the correct way to read it? Yes, however, that suggested target cash is for a diversified investment. For an individual company stock we multiply the suggested cash by 1.5. Again this is a conservative suggested level but works as a rule of thumb. You can use any multiplier that seems fit. Some use the number just as it is for individual common stocks if the stock in question has a BETA near 1.0. If it's higher, then a multiplier makes good sense. Hope this helps, OAG Tom