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Last Post: 10/24/2016 5:21:47 PM - Followers: 265 - Board type: Free - Posts Today: 0

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
#41350   Hi Ken, Re: Missing Things................. OldAIMGuy 10/24/16 05:21:47 PM
#41349   Out mowing the lawn... Firebird400 10/24/16 02:42:31 PM
#41348   VWave for the week of October 28th JDerb 10/24/16 11:22:36 AM
#41347   Hi Adam, Re: Quiet AIM Board.............. OldAIMGuy 10/23/16 09:49:24 AM
#41346   Hi Adam.. "I notice when the market moves sideways JDerb 10/22/16 01:20:27 PM
#41345   I've not had much selling because I don't Adam 10/19/16 02:02:20 PM
#41344   I just read about another investing signal that Toofuzzy 10/17/16 08:05:16 PM
#41343   VWave for the week of October 21st JDerb 10/17/16 11:13:48 AM
#41342   Hi Allen, karw 10/14/16 11:16:09 AM
#41341   Hi karw, Am I correct in understanding that SFSecurity 10/13/16 04:17:00 PM
#41340   Thanks for the Report Karl, Re: Selling opportunistically.............. OldAIMGuy 10/12/16 01:30:02 PM
#41339   AIM sell karw 10/11/16 03:22:58 PM
#41338   Hi SF Security ocroft 10/11/16 01:56:05 PM
#41337   HI SF Toofuzzy 10/11/16 08:55:30 AM
#41336   Hi Orcroft, When you use the converging line SFSecurity 10/11/16 02:38:24 AM
#41335   VWave for the week of October 14th JDerb 10/10/16 10:46:46 AM
#41334   Hi SF Security ocroft 10/07/16 01:32:39 AM
#41333   HI SF Toofuzzy 10/07/16 01:18:43 AM
#41332   Hi Toofuzzy, How did you come to add SFSecurity 10/06/16 11:55:23 PM
#41331   Added 30% more shares to my macro Toofuzzy 10/06/16 03:32:56 PM
#41330   HI SF Toofuzzy 10/06/16 12:58:04 AM
#41329   Hi Orcroft, The link to the AIM post SFSecurity 10/05/16 10:39:25 PM
#41328   HI Adam Toofuzzy 10/05/16 05:38:31 PM
#41327   Q-3 and YTD Summary OldAIMGuy 10/05/16 01:48:00 PM
#41326   Nice work Adam, It's always nice to take OldAIMGuy 10/05/16 01:38:43 PM
#41325   Sell today in KRE. I think Toof and Adam 10/05/16 01:34:04 PM
#41324   HI Aim 1979 Toofuzzy 10/04/16 04:58:27 PM
#41323   Looking at CREE today, I remember in 1997 AIM1979 10/04/16 12:34:02 PM
#41322   Why I dont like individual stocks for Aiming. Toofuzzy 10/04/16 07:48:05 AM
#41321   VWave for the week of October 7th JDerb 10/03/16 12:31:02 PM
#41320   MACRO AIM by Don Carlson ocroft 09/30/16 04:22:51 PM
#41319   HI SF Toofuzzy 09/29/16 11:58:07 PM
#41318   Hi Gang, An observation. I created a watch SFSecurity 09/29/16 10:58:02 PM
#41317   Thanks Ken and congratulations on the sale. OldAIMGuy 09/28/16 10:39:16 AM
#41316   Hi Tom, Firebird400 09/28/16 09:14:43 AM
#41315   Hi Allen, Re: AIM and Sector ETFs............ OldAIMGuy 09/28/16 08:57:48 AM
#41314   Hi Tom, Thanks for the explanation of how SFSecurity 09/27/16 04:14:22 PM
#41313   Whoops! I must have been more tired than SFSecurity 09/27/16 03:40:42 PM
#41312   Happy Birthday Tom. The more you have Mvls 09/26/16 11:25:50 AM
#41311   VWave for the week of September 30th JDerb 09/26/16 10:51:54 AM
#41310   "Dear Jon" (so to speak), OldAIMGuy 09/26/16 07:57:11 AM
#41309   Hi Allen, Re: Calculating the Next Buy and OldAIMGuy 09/26/16 07:43:49 AM
#41308   Happy Birthday, Tom. Wish you many more. SFSecurity 09/25/16 05:14:34 PM
#41307   HAPPY BIRTHDAY, Tom! JDerb 09/25/16 10:12:10 AM
#41306   Hi Tom, I agree that keeping the commissions SFSecurity 09/24/16 07:56:50 PM
#41305   Hi Allen, Re: Calculating the Next Buy/Sell prices............. OldAIMGuy 09/24/16 08:42:12 AM
#41304   Hi Gang, In checking my spreadsheet version of SFSecurity 09/24/16 12:53:03 AM
#41303   Sold 5% of my shares of BIB today Toofuzzy 09/23/16 04:50:29 PM
#41302   Thanks DB, I only took a quick look OldAIMGuy 09/21/16 09:54:20 AM
#41301   Hi Tom, Please check your personal email, dougburkeaz 09/20/16 12:42:35 PM