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A.I.M. Users Bulletin Board (AIMUSERS)

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Last Post: 2/24/2017 10:28:45 AM - Followers: 269 - Board type: Free - Posts Today: 1

A.I.M. Users Bulletin Board
Robert Lichello's "Automatic Investment Management"
(Compliments of Investors Hub!)

While the AIM book is no longer being reprinted, it is available from Amazon for their Kindle for $5.99.

Run A Successful Equity Warehouse
Welcome to the AIM Users Bulletin Board. This is the thread to post your thoughts, questions and comments on the use of Robert Lichello's Automatic Investment Management for handling the risk of being involved in the Equities markets.

The AIM strategy gives the user LIFO gains of 20% minimum if the method is followed "by the book." It is ideally suited to those seeking long term investment growth while managing the risk of being invested.

The v-Wave........
Mr. Lichello used fixed cash starting levels; first it was 50/50 then 67/33 and in the last edition of his book 80/20 for the Equity/Cash ratio. This "one size fits all" approach is like a broken watch that shows the correct time twice a day but is wrong the rest of the time!

Minstrlman, a regular contributor here, has been gathering data from Value Line and formed a highly capable risk-cash indicator for our use. As an adjunct to the AIM methodology we now have a Cash Indicator which helps guide our starting and ongoing Cash Reserve level of AIM relative to measured market risk. It can be used as a general market barometer or specifically with the AIM method. The v-Wave (or VW) is derived from the Value Line "Appreciation Potential - Next 3-5 Years" (VLAP) indicator shown weekly in their Summary and Index Section for their 1700 stock edition. Looking back through V/L's history we find the peak Appreciation Potential occurred 12/23/1974 at +234%. Assuming that we should have been 100% invested at that moment, we've used it to scale the current readings so that we don't see a negative cash reserve. We take the VLAP and  manipulate it to get an indication of how much cash should be reserved for diversified mutual fund AIM accounts. It should be multiplied by your stock or portfolio's BETA to get the cash reserve level of less diversified or more aggressive holdings.  

                                                      v-Wave Weekly Cash Reserve Indicator For AIM Users

                                       10th Percentile = 43.1 or below Low Risk; 90th Percentile = 59.3 or above High Risk; Average Value = 51.5

Here's the Historical v-Wave during various times since 1982:

Significant historical events are shown nicely here and the v-Wave's response at those times.

v-Wave Calculations can be found at #30219. The data are a work-in-progress for now.

AIM Users Home Page: AIM Weekly Newsletter (free): AIM Stock Examples:

AIM "Cash Burn" Chart AIM Exchange Traded Funds (ETFs) Board Tom's Retirement Account with ETFs Software for AIM accounts: I started using AIM full time in January of 1988, just after the nasty "crash" of '87. Those of us who have used AIM for a while are willing to help you get started with your own Equity Warehouse. Please feel free to ask questions here on this thread. Also, I've compiled some of the more frequent questions at: AIM FAQ's: and With AIM, you can choose stocks and funds for their Long Term investment potential. AIM will take care of most of your market timing and asset allocation needs while you wait for your favorite companies' stocks to prosper. Tom's AIM/Perverse Investment Candidates: Newsletter Archives - AIM for "Rational Exuberance," Tom Veale

#37762  Sticky Note Hi TFO, My apology for directing that last OldAIMGuy 06/05/14 08:07:49 AM
#37457  Sticky Note Re: Newport AIM software ls7550 12/28/13 08:56:43 AM
#36711  Sticky Note Thanks LC, Now they can use the "calculator" again! OldAIMGuy 06/04/13 05:01:59 PM
#36709  Sticky Note This is a copy of that lostcowboy 06/04/13 09:56:02 AM
#30219  Sticky Note Hi Glen, RE: Calculating the v-Wave................... OldAIMGuy 05/26/09 11:32:16 AM
#41793   Buy signal today... Firebird400 02/24/17 10:28:43 AM
#41792   Altman Z score: lostcowboy 02/23/17 02:47:55 PM
#41791   Re: ETF Portfolios Performance from MorningStar................. OldAIMGuy 02/23/17 02:47:00 PM
#41790   Slightly off topic: Most of you have come lostcowboy 02/23/17 02:41:45 PM
#41789   Buy Today... Firebird400 02/22/17 12:59:14 PM
#41788   Hi Toofuzzy, Too right, you are! SFSecurity 02/21/17 02:43:40 PM
#41787   HI Allen Toofuzzy 02/20/17 05:07:21 PM
#41786   Hi Tom, Yes, quite interesting, and thanks for SFSecurity 02/20/17 02:39:00 PM
#41785   Here's an interesting article by author Danielle Di OldAIMGuy 02/20/17 11:21:02 AM
#41784   VWave for the week of February 24th JDerb 02/20/17 10:37:26 AM
#41783   Hi Allen, Spreadsheet... Firebird400 02/19/17 09:09:41 AM
#41782   Hi Clive, Oh dear, it is so embarrassing SFSecurity 02/18/17 04:41:21 PM
#41781   If the wealthy aren't spend all that much ls7550 02/18/17 07:10:39 AM
#41780   Hi Tom, I just ran CCL from 1/2010 SFSecurity 02/17/17 02:11:33 AM
#41779   Hi AIM1979, Get drunk to kill the pain, eh? SFSecurity 02/17/17 12:59:56 AM
#41778   Hi Allen, Re: list and ideas.......... OldAIMGuy 02/16/17 09:33:56 AM
#41777   Diageo Plc DGE Consumer Staples AIM1979 02/16/17 08:34:34 AM
#41776   A bird in hand is worth two in Adam 02/15/17 09:15:15 PM
#41775   Thanks K, OldAIMGuy 02/15/17 02:38:46 PM
#41774   Aim sells karw 02/15/17 02:37:39 PM
#41773   Hi Gang, I came across something I had SFSecurity 02/15/17 01:18:49 PM
#41772   Re: AIM Sell triggers............... OldAIMGuy 02/15/17 12:49:22 PM
#41771   Yep but also have had it be the Toofuzzy 02/14/17 07:55:49 AM
#41770   To All, macprogrammer 02/13/17 08:30:20 PM
#41769   Thank you and well done on CGNX. macprogrammer 02/13/17 08:26:34 PM
#41768   Hi Gang, Sometimes I think I'm all fumble SFSecurity 02/13/17 03:04:50 PM
#41767   VWave for the week of February 17th JDerb 02/13/17 10:28:35 AM
#41766   Welcome back Ryan.............. OldAIMGuy 02/12/17 03:11:28 PM
#41765   Hi Adam, Re: CGNX Sale........... OldAIMGuy 02/12/17 02:56:28 PM
#41764   Thanks, Allen. cklow 02/12/17 03:25:31 AM
#41763   Hi cklow, If you like I'll review what SFSecurity 02/11/17 06:50:28 PM
#41762   Hi Toofuzzy, You're right. I meant to say SFSecurity 02/11/17 04:12:31 PM
#41761   Hi and welcome. macprogrammer 02/11/17 04:02:02 PM
#41760   Try testing it on SPY from January of Toofuzzy 02/11/17 08:41:17 AM
#41759   Hello guys, cklow 02/11/17 03:28:29 AM
#41758   HI Allen Toofuzzy 02/10/17 04:45:57 PM
#41757   Hi Gang, what does everyone think about the SFSecurity 02/10/17 04:16:40 PM
#41756   Hi Gang, First of all I found a SFSecurity 02/10/17 04:13:37 PM
#41755   >Method 2 macprogrammer 02/09/17 05:35:20 PM
#41754   A few things I forgot to mention with macprogrammer 02/09/17 05:16:09 PM
#41753   RT.. I downloaded 'Undertrader' on an older IPad a JDerb 02/09/17 12:30:08 PM
#41752   Jon, Thanks for that information. I looked at AIM1979 02/09/17 09:10:11 AM
#41751   HI Mac Toofuzzy 02/09/17 01:22:47 AM
#41750   Allen, thank you. macprogrammer 02/08/17 09:57:45 PM
#41749   Toofuzzy, those are all excellent approaches. macprogrammer 02/08/17 09:55:47 PM
#41748   Welcome back, macprogrammer! I'm curious how you use SFSecurity 02/08/17 01:37:26 PM
#41747   Macprogramer Toofuzzy 02/08/17 11:11:23 AM
#41746   Hi Jon, re: Under... Firebird400 02/08/17 08:38:49 AM
#41745   Howdy Folks. Was on this board years ago. macprogrammer 02/08/17 02:46:41 AM
#41744   HI RT... There was an AIM app for IOS JDerb 02/08/17 12:37:27 AM