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

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Last Post: 7/17/2017 10:28:23 PM - Followers: 269 - 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
#42199   Hi Toofuzzy, What he said is that less SFSecurity 07/17/17 10:28:23 PM
#42198   HI Allen Toofuzzy 07/17/17 10:19:58 PM
#42197   Hi Toofuzzy and Gang, SFSecurity 07/17/17 10:07:45 PM
#42196   VWave for the week of July 21st JDerb 07/17/17 10:08:22 AM
#42195   Don't trade the inverse ones except for SVXY Toofuzzy 07/16/17 10:54:44 AM
#42194   Thats what 3X ETF's are for. Way too Liam00 07/16/17 10:12:41 AM
#42193   Mdsuth I have been using urty but I like Toofuzzy 07/16/17 01:59:15 AM
#42192   I don't trade them more than monthly. Toofuzzy 07/16/17 01:57:54 AM
#42191   Wow, those 3x ETFs really generate some trade hrfanmike 07/16/17 12:27:12 AM
#42190   ERX? Toof - have you joined me MDSuth 07/15/17 07:28:39 PM
#42189   Nice! You should be in good shape when/if hrfanmike 07/15/17 04:50:24 PM
#42188   Sorry, no Ideal how to find that data. lostcowboy 07/14/17 02:00:14 PM
#42187   Added 6% more shares of ERX today @ Toofuzzy 07/13/17 04:00:14 PM
#42186   HI Tom Toofuzzy 07/13/17 09:44:13 AM
#42185   Hi Toof and Allen, Re: Brokerages............ OldAIMGuy 07/13/17 08:21:02 AM
#42184   HI Allen Toofuzzy 07/12/17 03:08:23 PM
#42183   HI Allen Toofuzzy 07/12/17 03:02:37 PM
#42182   Hi Gang, Finally have gotten some traction with SFSecurity 07/11/17 06:57:15 PM
#42181   Hi Lostcowboy, Yep, I've got the book and SFSecurity 07/11/17 06:49:10 PM
#42180   VWave for the week of July 14th JDerb 07/10/17 10:14:12 AM
#42179   Hi Allen, AIM and LEAPS, check out Jeffrey lostcowboy 07/08/17 11:56:48 PM
#42178   Hi Mike, Re: SPHB vs SPY................ OldAIMGuy 07/08/17 10:58:18 AM
#42177   Thanks for the replies! Tom, you are not hrfanmike 07/07/17 07:54:37 PM
#42176   Hi Mike, Sector ETFs are well suited for Adam 07/07/17 05:12:22 PM
#42175   Welcome Mike, OldAIMGuy 07/07/17 03:20:12 PM
#42174   Hi hrfanmike, Welcome to the conversation. SFSecurity 07/06/17 11:51:29 PM
#42173   Long time listener, first time caller. hrfanmike 07/06/17 11:14:53 PM
#42172   I sold the last of my active mutual Adam 07/06/17 07:58:08 PM
#42171   Thank you and to you as well! OldAIMGuy 07/04/17 08:31:02 PM
#42170   Happy 4th of July!, Firebird400 07/04/17 05:11:25 PM
#42169   A Happy Independence Day to all AIMers! JDerb 07/04/17 01:17:27 PM
#42168   Hi Allen Toofuzzy 07/03/17 02:26:10 PM
#42167   VWave for the week of July 7th JDerb 07/03/17 11:11:09 AM
#42166   Hi Gang, As an experiment I bought GUSH , SFSecurity 07/03/17 12:39:50 AM
#42165   Anyone AIM criptocurrencies ? Toofuzzy 06/30/17 04:12:53 AM
#42164   Hi Gang, Because of a problem with TDAmeritrade's SFSecurity 06/29/17 03:13:52 PM
#42163   VWave for the week of June 30th JDerb 06/26/17 10:41:37 AM
#42162   HI Allen Toofuzzy 06/23/17 04:35:36 PM
#42161   HI Allen Toofuzzy 06/23/17 04:35:32 PM
#42160   HI Tom Toofuzzy 06/23/17 04:33:01 PM
#42159   Hi Toofuzzy, I suddenly remember that the way SFSecurity 06/23/17 02:57:09 PM
#42158   Hi Toofuzzy, When you say "QUICK AIM CALCULATOR" SFSecurity 06/23/17 02:17:24 PM
#42157   Hi Ray, Yep, you are correct. Selengut has SFSecurity 06/23/17 02:06:20 PM
#42156   Hi Toof, Re: Math and Quick AIM Calculator........... OldAIMGuy 06/23/17 08:46:34 AM
#42155   Hi Allen, Re: Trades with TLT over time............ OldAIMGuy 06/23/17 08:03:46 AM
#42154   HI Tom Toofuzzy 06/23/17 02:26:07 AM
#42153   Hi Tom, I'm curious about your TLT chart. SFSecurity 06/23/17 01:51:18 AM
#42152   Hi Toofuzzy, CanRay 06/22/17 06:28:28 PM
#42151   Hi Toof, Re: TLT settings and trade range............ OldAIMGuy 06/22/17 03:59:15 PM
#42150   HI Tom Toofuzzy 06/22/17 03:15:50 PM