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

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Last Post: 10/3/2015 5:24:38 AM - Followers: 256 - 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
#39940   UBA Drawdown from the top for Equity plus cash, karw 10/03/15 05:24:38 AM
#39939   Let the 4th Quarter begin... Firebird400 10/01/15 08:01:26 AM
#39938   Congrats Tom Toofuzzy 09/29/15 06:05:53 PM
#39937   Also had AIM directed buys today: BOE, IYZ, AdamHelberg 09/29/15 05:11:43 PM
#39936   Hi Tom, Yeah, had a buy for SFSecurity 09/29/15 03:09:08 PM
#39935   Hi Tom. ls7550 09/29/15 11:46:21 AM
#39934   Buy activity picking up speed...................... OldAIMGuy 09/29/15 09:25:01 AM
#39933   I was thinking of having a friend start Toofuzzy 09/28/15 10:48:28 AM
#39932   VWave for the week of October 2nd JDerb 09/28/15 10:38:06 AM
#39931   Lost Decade? what comes next? jaiml 09/27/15 11:38:21 PM
#39930   Hi Tom ls7550 09/27/15 05:25:43 PM
#39929   Hi Tm Toofuzzy 09/26/15 11:23:50 PM
#39928   Hi JD, Thanks! Yes, it happened again - OldAIMGuy 09/26/15 04:37:17 PM
#39927   Hi Toof, I think there is some pretty OldAIMGuy 09/26/15 04:36:18 PM
#39926   HAPPY BIRTHDAY, TOM! JDerb 09/25/15 08:38:45 PM
#39925   Toof, I have one like your STKL, mine AdamHelberg 09/25/15 08:16:00 PM
#39924   Anybody own STKL Toofuzzy 09/25/15 06:06:53 PM
#39923   U.S. 2nd Quarter GDP Grows 3.9% ls7550 09/25/15 03:37:45 PM
#39922   U.S. 2nd Quarter GDP Grows 3.9% Firebird400 09/25/15 01:48:10 PM
#39921   Hi Ken, I'm not sure I agree as SFSecurity 09/23/15 04:08:28 PM
#39920   Hi Tom, re:FGD Firebird400 09/23/15 03:07:33 PM
#39919   Congratulations Toof, My biotech holding needs a bit OldAIMGuy 09/23/15 10:57:14 AM
#39918   Buy today. Toofuzzy 09/22/15 11:18:25 PM
#39917   VWave for the week of September 25th JDerb 09/21/15 10:55:02 AM
#39916   It already affected the stock. The stock wenr Toofuzzy 09/19/15 12:59:43 AM
#39915   Hi Toofuzzy, SFSecurity 09/18/15 10:00:23 PM
#39914   I dont think much of lawsuits in general. Toofuzzy 09/17/15 11:52:48 PM
#39913   Hi Toofuzzy, I'm curious what you think about SFSecurity 09/17/15 12:09:19 AM
#39912   Bought some more SLW today. They announced they Toofuzzy 09/15/15 03:38:03 PM
#39911   VWave for the week of September 18th JDerb 09/14/15 11:25:29 AM
#39910   I bought the original shares too early and Toofuzzy 09/13/15 06:15:37 PM
#39909   Hi Tf, lrp42 09/12/15 11:54:47 AM
#39908   Hi Gang, JCE might be a good deal SFSecurity 09/09/15 04:33:41 PM
#39907   Thanks K for the report. I did add OldAIMGuy 09/09/15 12:36:09 PM
#39906   Cash available, karw 09/09/15 12:14:48 PM
#39905   I bought some more xiv and bib this morning. Toofuzzy 09/09/15 11:12:48 AM
#39904   Re: Market activity.......................... OldAIMGuy 09/09/15 10:24:20 AM
#39903   Today was a wild ride! All positions up SFSecurity 09/08/15 06:01:03 PM
#39902   Thanks JD, Re: v-Wave....................... OldAIMGuy 09/08/15 10:28:27 AM
#39901   CORRECTION Wave for the week of September 11th JDerb 09/07/15 11:50:47 AM
#39900   VWave for the week of September 11th JDerb 09/07/15 11:23:17 AM
#39899   Good morning JD, Re: Market Risk and the v-Wave..................... OldAIMGuy 09/07/15 10:04:49 AM
#39898   D$%^! I forgot to use my new favorite SFSecurity 09/04/15 03:13:06 PM
#39897   Froggy's wild ride is right. For the first SFSecurity 09/04/15 03:03:18 PM
#39896   Hi Clive, jaiml 09/02/15 05:31:01 PM
#39895   Hi Allen, Re: Volatility and the v-Wave Oscillator........... OldAIMGuy 09/02/15 01:52:06 PM
#39894   Thanks Tom. Very clear now. SFSecurity 09/02/15 01:43:05 PM
#39893   I dont recall. I just know the smothed Toofuzzy 09/01/15 04:13:05 PM
#39892   Hi Allen, Toof is correct. It is a OldAIMGuy 09/01/15 03:42:37 PM
#39891   Hi Gang, What do you think of VNR SFSecurity 09/01/15 03:16:59 PM