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

To: JZGalt who wrote (5496)	8/31/1998 4:54:00 PM
From: OldAIMGuy	Read Replies (2) \| Respond to of 18928

Hi Dave, Thanks for those comforting words!!!! Please remember that the Idiot Wave is now recommending 44% Cash Reserve for starting new AIM accounts. I don't consider a market Low Risk unless the IW is recommending less than 30% Cash Reserve for stocks. We haven't had one of those since 1990 and only a few in the entire period from 1982 to present. . If all remains exactly as is for a month or so, the IW will approach that low risk value. The term "selling climax" has meaning here. Big volume with big price drops. Even BMY got hammered today. I personally placed and had fill 31 separate orders today so I'm doing my part to support the market. Please remember that my AIM accounts are based upon a strategy of selection that requires me to hold them at least 3 years. Looking out to 2001, are today's prices attractive? If there were more AIMers out there, we'd probably not have had either a fat a rally or as big a dip!! Then where'd we get our entertainment!! How would your ODB AIM accounts look today if you had started at 54% Cash Reserve that was recommended back in June and July? From the looks of the accounts, you might still have exhausted the cash, but you'd sure own a pile of shares! If I were young and gainfully employed with some reasonable job security, I'd consider margin as a way to continue buying into this sort of market dip. Since I've not taken a salary since 1986, I'm not much interested in going into hock for stock. Maybe a quick Home Equity Loan................. Best regards, Tom

To: JZGalt who wrote (5496)	9/1/1998 4:22:00 AM
From: Bruce A. Bowman	Read Replies (2) \| Respond to of 18928

Hi Dave- Couple thoughts... - a broker interviewed on KCBS (our local CBS all news station) was sounding very bullish with the big correction. "Lots of great buys out there right now!" Anyone remotely inclined toward contrarian thinking should realize we're in for more since brokers are always supposed to be wrong at a point like this. - I would hate it if Robt. Prechter were right! :-) (For the unanointed, Prechter is the Elliott Wave theorist who wrote "At the Crest of the Tidal Wave" which is his global meltdown scenario. He projects a Dow of 400 at the bottom. <http://www.elliottwave.com/books/AttheCrest.htm>) Bruce