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


To: Bernie Goldberg who wrote (4727)5/20/1998 12:34:00 AM
From: Bruce A. Bowman  Read Replies (1) | Respond to of 18928
 
Well, well... I never thought I'd hear something like this from you, Bernie! :-) Actually, your idea sounds well considered. The extra cash from the dividends is part of your return, but I think you'd have to add the cash from the dividend to the AIM account in Newport, wouldn't you?

Bruce



To: Bernie Goldberg who wrote (4727)5/20/1998 7:32:00 AM
From: OldAIMGuy  Respond to of 18928
 
Hi Bernie, Congratulations on the DuPont trade. I also use a lesser Cash Reserve for some of my more conservative stocks. I use a maximum of 12% for my long term bond fund, about 20% for my Sealed Air Corp. stock and use the Idiot Wave's Mutual Fund reading as the cap for one or two others.

As Bruce pointed out, sometimes it's things that are beyond our imagination that will drive a company's stock price down. We only have history as our guide in that case. Your choice of splitting the difference between the IW stock and mutual fund reading should be a good one. The amount varies with market risk, but still allows more aggressive ownership of a more conservative stock.

Best regards, Tom