Wednesday, May 25, 2016 11:37:14 AM
Hi Allen, Re: AIM and TIME..........
As you noted in another post some investments don't have much amplitude or frequency of price reversals. That doesn't make them bad investments, it just means AIM's probably only going to work one side of the street for longer periods than the other. However, when AIM does eventually move to the Buy side of the street, it will make effective and satisfactory inventory additions for the future.
Knowing that AIM is going to do the right thing for us when the time comes is something we have to trust. For instance, Precious Metals and the Energy sector were in downward spirals for a very long time. That was after several years of exceptional gains. This week in the Value Line Summary and Index section I note that of the 41 Best Performing Stocks of the Latest 13 Weeks around 15 of them are Energy related and another 5 are involved in Precious Metals. 13 weeks ago it was February and the markets were at their recent lows. By February AIM would have accumulated a small mountain of shares of both Energy and Precious Metals shares. The result would be a very nice gain from those purchases even if the total mass of shares was not yet profitable.
Here's a selection of ETFs that follow the Energy sector:
Those are some pretty handsome gains for companies on the Best list and the ETFs did well, too. Zigs and Zags would not be here in this short time span, but the profits certainly would be welcome.
Here's the list from the end of February. Note on the Worst list the heavy concentration of stocks from the Energy sector back then. Note the huge declines as well. On the Best list you can see the Precious Metals sector was already in rebound.
Note the number of retail companies, tech and solar names on the current Worst list. Most everything on that list is down enough from 13 weeks ago that AIM might be starting to do some buying in those names now. ETFs that follow those two sectors are probably also down considerably. Some companies are on that list because they're being slaughtered as part of the Herd. Some are on that list because they're crummy companies. Further study is highly recommended!!!
As you noted in another post some investments don't have much amplitude or frequency of price reversals. That doesn't make them bad investments, it just means AIM's probably only going to work one side of the street for longer periods than the other. However, when AIM does eventually move to the Buy side of the street, it will make effective and satisfactory inventory additions for the future.
Knowing that AIM is going to do the right thing for us when the time comes is something we have to trust. For instance, Precious Metals and the Energy sector were in downward spirals for a very long time. That was after several years of exceptional gains. This week in the Value Line Summary and Index section I note that of the 41 Best Performing Stocks of the Latest 13 Weeks around 15 of them are Energy related and another 5 are involved in Precious Metals. 13 weeks ago it was February and the markets were at their recent lows. By February AIM would have accumulated a small mountain of shares of both Energy and Precious Metals shares. The result would be a very nice gain from those purchases even if the total mass of shares was not yet profitable.
Here's a selection of ETFs that follow the Energy sector:
Those are some pretty handsome gains for companies on the Best list and the ETFs did well, too. Zigs and Zags would not be here in this short time span, but the profits certainly would be welcome.
Here's the list from the end of February. Note on the Worst list the heavy concentration of stocks from the Energy sector back then. Note the huge declines as well. On the Best list you can see the Precious Metals sector was already in rebound.
Note the number of retail companies, tech and solar names on the current Worst list. Most everything on that list is down enough from 13 weeks ago that AIM might be starting to do some buying in those names now. ETFs that follow those two sectors are probably also down considerably. Some companies are on that list because they're being slaughtered as part of the Herd. Some are on that list because they're crummy companies. Further study is highly recommended!!!
Best regards,
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
