A.I.M. Users Bulletin Board

[ls7550]

Hi Jake

Cash percentage if you pool cash (and manage its level based on the VWave)

Hello all - If you're pooling cash across several AIM machines, do you try to maintain a cash percentage based on the VWave, as you would for cash allocated to an individual stock?

I'm thinking that if I pool cash, I might want to keep its percentage a bit lower in relation to the total value, based on the guess that the stocks or funds might not all rise or fall in unison and so wouldn't all need to draw on cash at the same time for AIM-directed buys.

Does that make sense ... or would it be better to treat each stock or fund as having its own separate amount of cash?

Don't lose sight of the forest for the trees.

If you simply initially allocated 30% stock weighting (70% cash) to a major stock index fund AIM, and just used that monthly reviewed AIM in a manner where each time it flagged a buy trade you upped your target weighting by 10%, 30/70, 40/60. 50/50, 60/40, 70/30, 80/20, 90/10, 100% stock, then longer term you'll more than likely do OK/well.

Clive