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

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Last Post: 9/24/2017 7:20:50 PM - Followers: 270 - Board type: Free - Posts Today: 2

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

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#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
#42312   Hi Gang, I have a list of Index SFSecurity 09/24/17 07:20:49 PM
#42311   Hi Mike, Re: SAFE for my holdings.......... OldAIMGuy 09/24/17 10:57:54 AM
#42310   Hi hrfanmike, I appreciate your thanks, but the SFSecurity 09/23/17 07:11:11 PM
#42309   Thanks SF. hrfanmike 09/23/17 05:40:58 PM
#42308   Thanks Tom for the reply. I believe that hrfanmike 09/23/17 05:34:28 PM
#42307   :-) OldAIMGuy 09/21/17 05:25:49 PM
#42306   Yesterday, buying the dip was such an easy Toofuzzy 09/21/17 10:10:46 AM
#42305   UBA Drawdowns karw 09/21/17 04:51:36 AM
#42304   Thanks K, OldAIMGuy 09/20/17 03:22:02 PM
#42303   Hi Mike, Re: Buy and Sell SAFE settings........... OldAIMGuy 09/20/17 03:18:40 PM
#42302   UBA update karw 09/20/17 11:31:26 AM
#42301   Hi hrfanmike, What you are missing is that SFSecurity 09/20/17 02:00:14 AM
#42300   SAFE Settings - Buy/Sell hrfanmike 09/19/17 09:59:56 PM
#42299   Yeah Tom, what is that neat software you SFSecurity 09/19/17 12:50:41 PM
#42298   Hi Tom, Software? Football Firebird400 09/18/17 06:00:56 PM
#42297   VWave for the week of September 22nd JDerb 09/18/17 11:32:27 AM
#42296   Congrats. Toofuzzy 09/16/17 01:53:23 PM
#42295   Hi Tom, karw 09/16/17 12:39:33 PM
#42294   This week I was able to sell shares OldAIMGuy 09/16/17 08:43:11 AM
#42293   Hi Tom... Seems like buy the dips is still JDerb 09/12/17 10:36:36 PM
#42292   Hi Bob. Thanks, but I've never heard that SFSecurity 09/12/17 09:24:47 PM
#42291   Allen, It was not GRC, but GFC (Global Financial BowlerBob 09/12/17 01:46:40 PM
#42290   Hi Bob, Thanks for the analysis. Quite helpful SFSecurity 09/12/17 12:51:24 PM
#42289   Hi Firebird400, Have you looked at SDLP for SFSecurity 09/12/17 12:55:40 AM
#42288   Well JD, That lower v-Wave value didn't last OldAIMGuy 09/11/17 12:25:04 PM
#42287   VWave for the week of September 15th JDerb 09/11/17 11:39:03 AM
#42286   Hi Allen, BowlerBob 09/08/17 09:06:10 PM
#42285   Hi Clive, SFSecurity 09/08/17 08:32:58 PM
#42284   Hi SFSecurity ls7550 09/08/17 06:25:40 PM
#42283   Hi Allen, Re: Leveraged ETFs............... OldAIMGuy 09/07/17 09:48:04 AM
#42282   Hi Gang, I cam across a very interesting SFSecurity 09/06/17 07:34:59 PM
#42281   Hi Toofuzzy, I switched from holding cash cash SFSecurity 09/06/17 07:29:19 PM
#42280   HI Allen Toofuzzy 09/06/17 05:57:58 PM
#42279   Re: Extremes of the v-Wave.......... OldAIMGuy 09/06/17 03:15:08 PM
#42278   Thanks Tom for the very clear explanation. It SFSecurity 09/06/17 02:38:01 PM
#42277   Hi Allen, Re: Value Line's "Appreciation Potential"............. OldAIMGuy 09/06/17 09:46:37 AM
#42276   HI Allen Toofuzzy 09/05/17 11:31:08 PM
#42275   Hi Tom, Could you please explain theAppreciation Potential SFSecurity 09/05/17 08:45:33 PM
#42274   Hi Tom.. My thoughts exactly. ;o) Take care. Jon JDerb 09/05/17 06:38:34 PM
#42273   Hi Jon, Re: v-Wave.............. OldAIMGuy 09/05/17 12:23:35 PM
#42272   Hi Gang, Well, duh, I feel a bit SFSecurity 09/04/17 04:09:19 PM
#42271   VWave for the week of September 8th JDerb 09/04/17 11:17:44 AM
#42270   Hi Jon, Livermore CA, about 40 miles from SFSecurity 09/02/17 12:23:14 AM
#42269   Thanks, Allen. This has been the hottest week JDerb 09/01/17 11:01:13 PM
#42268   Hi Gang, Have a great Labor Day Weekend SFSecurity 09/01/17 09:05:25 PM
#42267   Hi Gang, There may well be a good SFSecurity 08/31/17 08:57:05 PM
#42266   Hi Gang, here is another listing of the SFSecurity 08/31/17 06:38:41 PM
#42265   Hi Tom, With a little more digging around SFSecurity 08/30/17 12:15:52 AM
#42264   VWave for the week of September 1st JDerb 08/28/17 10:50:51 AM
#42263   Re: US Stocks Recent Net Outflows ............ OldAIMGuy 08/26/17 09:04:42 AM