Replies to post #35784 on A.I.M. Users Bulletin Board (AIMUSERS)

[daisy42]

Re: Updated VWave

Thanks very much for posting the separate value for diversified mutual funds - it is a VERY useful addition. Although I have read about this difference from the one for individual stocks, it was after I had started several AIM accounts. From now on it also has a more 'official' status. There is a slight question about how diversified is diversified - precious metals fund probably not, but domestic mid-cap fund?, emerging markets fund?

For more recent accounts I having been using the percentage drop from the current value to the last major low, generally March 2009.

Is there a rational way of moving to the lower level for mutual fund AIM accounts that were started using the higher VWave cash level and have been running for a while? Phasing more in from the cash reserve over a few months perhaps.

Daisy

[OldAIMGuy]

Thanks JD, Re: v-Wave and diversification.............

I think the higher number for individual company stocks makes very good sense. For traditional diversified mutual funds with hundreds of companies represented, then the smaller cash reserve level makes better sense. We could expect the "beta" of an individual company stock to be far higher than a diversified mutual fund.

Thanks for your consideration on this. I'll update the v-Wave graph to show both histories.

Best regards,