Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mutuals:AIMing For Profits--Invest In Best -- Ignore unavailable to you. Want to Upgrade?

To: LemonHead who wrote (974)	3/11/1999 10:38:00 AM
From: OldAIMGuy	Respond to of 4158

Hi Keith, Rather than "when" how about "how much" as a point of decision making? Currently the Idiot Wave is suggesting that we start new stock investments with about 49% Cash Reserve, but that might be a bit heavy for an index fund. The IW is asking for 33% Cash for diversified mutual funds. I think the thing to do is to look at the all time high of the N-100 from last year and look at how far it fell during the correction last Fall. That should give us a way of judging how big the cash reserve should have been at the peak of the market. Then, we can give thought to whether the Stock or Mutual Fund reserves suggested for the IW are closer. With UOPIX, which is based upon the N-100 but souped up with options, I'm using the "stock" recommendation, but it has about a 2X movement compared to the underlying index. Best regards, Tom