Replies to post #35106 on A.I.M. Users Bulletin Board (AIMUSERS)

[Conrad]

Hi TooFuzzy!
I was not intending to open a new debate on this. I simply stated(just like Clive did) that if you AIM two stock that exhibit price cycles you reap the profits of both. It makes no difference if these stocks are near inverses of each other or not. . . It is clear that if one stock rises as the other one drops you do not run out of cash easily. . .that's clearly a bonus!

I do not understand your point on your statement:

. . .no matter what you pick they will NOT act exactly as inverses each other and the one that is supposed to be the "inverse" fund will not track accurately

Who claimed that it was required that they should de be exact inverses??? That is clearly irrelevant!
What do you mean by that the inverse fund will not "track" accurately ?????
Whatever it is. . .by the argument in the opening statement it would not be relevant anyway, so it is only curiosity that makes me ask it:-)

[aimdeveloper]

Yea, I agree, I always think if something is that easy, more people would do it.

There is an inherent cost to these funds that make them not exactly 3x or inverses of each other. Their prospectus says that too.