Replies to post #8973 on A.I.M. Users Bulletin Board (AIMUSERS)

[ljk]

I've had ACG before, years ago, for a long time. It's good for what it is. I wouldn't sell it now that it's down so much so quickly, but I'll be happy to lighten up when I can get out without a loss, which may take some years. Bad timing on the entry, but AIM generally fixes these things. Over time! Sometimes too much time.

Tom will help me do the best I can with it. He said I should wait a month for my next buy, and I will follow his advice.

Linda

[OldAIMGuy]

Hi Jibes, Please remember that there are other reasons people invest besides just volatility capture. I like to remind people that there are three basic reasons:

1) Price Appreciation over time
2) Dividend Capture over time
3) Volatility Capture over time.

AIM's specifically designed for #3 but that doesn't mean that the other two have to be ignored. Actually AIM as designed by Mr. Lichello has the hardest time with #1 and a much easier time with #2.

We also discuss Frequency and Amplitude as items of interest relative to AIM and volatility. ACG doesn't have the Frequency, but is nicely structured for Amplitude. Shorter term bond funds have less amplitude and therefore are less suitable for AIM's help. Shorter term bond funds also have less yield, so are less suitable for investors interested in dividend capture. With AIM, we can handle the price swings of a long term bond fund profitably.

One has to have extreme patience with high yield equities and AIM. With a three to four year cycle we don't see much activity, but when it comes, it's highly profitable. Shares I purchased in 1999 at $6-3/8 look pretty nice when I'm selling shares in 2003 at $9.50. Not only did I collect better than 10% per annum dividend, I then caputed a very handsome capital gain. I can wait for a long time to re-invest those harvested dollars. With a capital gain equal to almost 5 years of dividend, the money can "rest" for a while.

Best regards, Tom