Replies to post #36344 on A.I.M. Users Bulletin Board (AIMUSERS)

[OldAIMGuy]

Thanks Clive,

Cash is the midfield that feed the striker to score a goal, but the striker (stocks) takes all the glory.

Well stated. Part of the reason I started keeping track of LIFO turns on AIM transactions was to see what the "yield" on the use of cash was. If we typically have a 20% to 30% LIFO gain from buying to selling then that becomes the effective yield on the utilization of the cash for that period.

Yes, we tend to say that Stock ZYX rose 20% from our last buy and attribute the gain to that stock (takes all the glory) but if the purchasing power hadn't been there in the first place, the gain wouldn't have been realized (feeding the Striker).

Here's an interesting article on correlation of various asset classes to VIX and to the 10 Year Treasury rate change:

http://advisorperspectives.com/newsletters13/Howard_Marks_Warnings_and_How_to_Protect_your_Portfolio.php

The list of ETFs on Page Four give a very interesting view on portfolio design and construction. His suggestion is that getting positive correlation to yield increases and negative correlation to VIX spikes might be a good thing.

Best regards,