Go to Jeff Salisbury LWGate Home Page.From: Hong Hsu <honghsu@bellatlantic.net>
Subject: Re: [CANSLIM] AAII letter to the editor
Date: Sat, 09 Aug 2003 10:30:24 -0400
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John,
I saw an advertisement on IBD. The advertisement claims AAII had a
study which compared 50 investment approaches. I wonder you know of
that. I would like to know what investment approaches were included in
the study and how AAII conducted the study as CANSLIM never tell when to
purchase/sell a list of stocks. I went to www.aaii.com web site and
didn't see any reference to that study report.
Do you happen to know where I could get the study report? Thanks,
- -Hong
John Solarno wrote:
>I just received my July copy of the AAII Journal (published by the American
>Association of Individual Investors.) In the letter to the editor section,
>there is a blistering objection to an article in the June issue by William
>O'Neill called "The Big Picture: How to Determine the Stock Market's
>Direction."
>
>The letter, written by a Jon A. Ford, says that O'Neil acknowledged, in his
>June article, that the bear market began in March of 2000. "What he doesn't
>say," writes Ford, "is that his Investor's Business Daily failed to notify
>investors that it was time to go into cash until February 13, 2003 - long
>after a large chunk of investment savings had gone up in smoke.
>
>"O'Neil's 'cut your losses at 7% rule' did not help," Ford continues,
>"because for almost the entire duration of the bear market, the
>encouragement was to continue buying newly identified stocks with sale
>proceeds. This effectively sets up a series of 7% to 8% stock market
>losses."
>
>Ford reminds readers that "as good as CANSLIM and related O'Neil media may
>be, the bottom line is for people to buy and sell stocks - and surpass
>others- but using O'Neil and company's merchandise."
>
>"Finally, after three years and 25% to 35% or more annual deterioration in
>investors' stock portfolios," says Ford, "Investor's Business Daily finally
>advised readers to go to cash - a recommendation that, if acted upon, would
>have effectively crystallized losses and kept investors from participating
>in the market increases only a month later."
>
>Ouch!
>
>I thought I'd throw this out to the group for comment.
>
>John Solarno
>
>
>
>
>
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<Linux kernel:>< As a computer I find your faith in technology amusing.
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