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Re: Tim Reese post# 3776

Tuesday, 07/09/2002 8:36:27 AM

Tuesday, July 09, 2002 8:36:27 AM

Post# of 48406
Hi Tim, I see you have at least one business sector fund - the precious metals VGPMX. I would like to suggest that these sector funds may offer good diversity for the sector and greater volatility to drive the AIM engine. Take a look at VGENX to add a specific Energy component, for instance. I'm sure there's more business sector funds available.

As a caution, business sector funds are going to probably require a larger cash reserve on hand than more broadly diversified funds. This has to do with the Wall St. syndrome of Sector Rotation. Wall St.'s Love/Hate relationship with sectors tends to drive each one to the extremes necessary to get AIM activity.

Of the funds you've listed, most are probably only going to require AIM activity maybe once or twice a quarter with standard AIM settings. This is a very nice low key way to handle things.

Best regards, Tom





Port Washington, WI 53074

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