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Re: The Grabber post# 987

Tuesday, 02/26/2002 5:45:40 PM

Tuesday, February 26, 2002 5:45:40 PM

Post# of 47181
Hi Steve,
Lou Dina was kind enough to create a spreadsheet showing three theoretical starting cash reserves and where various BUY SAFE levels would have you deplete the cash given a long slow BEAR market.

I've only done the basics to make this a view-able web page and plan on dressing it up more later. However, it seems to do a lot of good in answering questions about how AIM and SAFE relate to the level of Cash Reserve.

My old "rule of thumb" is confirmed by Lou's study. Basically it's that a 10% SAFE and 50% Cash Reserve will last with about a 50% decline in price. Here's what the spreadsheet looks like:
http://www.aim-users.com/cashburn.htm

Lou, thank you for the time and effort put forth in this document. It makes a great new page for the AIM site. I'll get the links, etc. set up over the next couple of days to make it accessable and "searchable" using normal engines.

Best regards, Tom
PS: Only 10 more to the Millennium!!!




Port Washington, WI 53074

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