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OldAIMGuy

08/17/03 9:13 AM

#244 RE: lostcowboy #227

Hi LC, Something I've often found humorous about AIM investors is their concern over running out of cash. Even Mr. L considered this a "happy day" yet AIMers still worry.

It's not THAT AIM users run out of cash, but WHEN they run out that seems to be most troubling aspect. If they burn it too quickly, then that's "bad" but if it lasts to the bottom of the price cycle, it's "good."
:-)

These same feelings have washed over me at various times in the past. One time was when we had a declining market, so therefore declining cash reserves. This was followed on by declining interest rates! So, even when I re-established a decent cash reserve, it wasn't spinning out any interest (on which I live).

What I find fascinating is that most investors world wide are essentially 100% invested all of the time. If they have any new cash it immediately goes into new investments with no reserves left for rainy days. The rare occasion they do have any idle cash is usually near the market's bottom when they've lost all hope and cashed out of the market!

So, don't add too much resistance to using up all the cash. It's really a good thing if done in the proper perspective of the length of the bear market. I'd have hated myself for not being fully invested when the NASDAQ finally bottomed at 1150 last Oct. This is just the same as how I would have hated myself for being fully invested at the top of NASDAQ 5000+ in Y2K.

Best regards, Tom