SELECTING STOCKS - VOLATILITY                                                             1 of 3

 Q: How do you go about picking stocks and funds for AIMOTIONLESS INVESTMENT MANAGER A[e]IM? Are there any good sources?

A: The more volatile the better! BETA - High BETA stocks do well with A[e]IM. This is true of very Low BETA stocks as well. Look for BETA above 1.4 or below 0.75. BETA is a measure of a stock's volatility as compared to the market as a whole.

For mutual funds, screen Forbes Magazine's annual issue on funds rated A+ in bull markets and F in bear markets. These ratings are consistent from year to year changing only as the funds themselves grow in size. This issue comes out in late Aug. or early Sept. and should be on file at most libraries. From that list also look for funds with less than 1.25% annual cost. Then look to see if the fund has consistently beaten the S&P 500 over the long haul. With those things as screens, the list should be appropriate for A[e]IM.

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