A.I.M. Users Bulletin Board

[Toofuzzy]

Hi Clive

>>>>Think about where you would stand if for example you held one AIM position of Dow long $10K with $5K cash reserve, and another AIM of Dow short $10K with $5K cash reserve.

The long and short cancel, so overall you're standing still with 0% return on $20K of total stock value and a cash returns on $10K - and paying broker fees etc to trade.<<<

That result is what I would expect if I AIMed one AGAINST the other but

1) I will AIM them seperately

2) I will be heavy cash in the regular fund when I start the inverse with a much lower cash amount. I would expect that one would be selling a LOT more than the other would be buying and that would reverse at the bottom of the market.

What if when I start the inverse fund the regular fund is 10k stock and 20k cash and I start the 2x inverse fund with 5k stock and 2.5k cash ?

Anyway that was the thought and I heed your warning.

Actually the 0% return you predict would be better than the 28% loss I have since the markets recent high.

Toofuzzy