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

To: Dataminer1 who wrote (5085)	7/15/1998 4:41:00 AM
From: Jim Battaglia	Respond to of 18928

Bill I think you can do this better with mutual funds rather than stocks for the reason you pointed out. Unlike (BOST), mutual funds rarely go out of business. The worst case senario is that they change their name and go on!! In the same token, markets do not go away either. They go thru cycles. In Newport I have been in a negative cash position with Asia for a few months...this is because I know the Asian Market will be around for a while and it will return. By going margin when the Market is in the negative will produce quicker rewards when they rebound. I learned this concept from William O'Neil on mutual funds. Everyone seems to quote him on stocks but never mention this simple strategy on funds. He also says that as the funds comes out of the valley of despair you liquid your margin holdings. Sure, this is not for the faint of heart. Time is the key factor. Asia will rebound. AIM will come out the winner when it does. The key to a true AIM account is volatility. So I believe that there may be a place for negative amounts when using mutual funds.