SureTrader Advertisement
Home > Boards > Free Zone > A.I.M. >

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

      Hide Sticky   Hide Intro
Moderator: OldAIMGuy Assistants: extelecom, The Grabber, AIMster
Search This Board:
Last Post: 7/30/2016 5:33:19 PM - Followers: 263 - 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
#41051   Hi Mvls Toofuzzy 07/30/16 05:33:19 PM
#41050   Hi Mvls Toofuzzy 07/30/16 05:29:19 PM
#41049   Hi Karw Toofuzzy 07/30/16 05:21:36 PM
#41048   BTW, how did you get the link to ls7550 07/30/16 04:54:26 PM
#41047   Busy week..... Firebird400 07/30/16 03:06:10 PM
#41046   Hi M, Re: Dividend payers, reinvestment vs taking cash.............. OldAIMGuy 07/30/16 01:53:18 PM
#41045   Thanks Tom. I forgot AIMfocuses on LIFO. My Mvls 07/30/16 09:23:56 AM
#41044   Hi M, Re: AIM's lack of concern relative OldAIMGuy 07/30/16 08:46:50 AM
#41043   Hi K, Re: IAU......... OldAIMGuy 07/30/16 08:32:31 AM
#41042   Suggestions sought. When I took back control of Mvls 07/30/16 08:23:43 AM
#41041   Hi Toofuzzy, karw 07/30/16 02:47:46 AM
#41040   Hi Is7550, Quite interesting. I tried a different SFSecurity 07/30/16 01:33:55 AM
#41039   Hi Allen, I also use the AIMbare spreadsheet Adam 07/30/16 12:46:26 AM
#41038   Hi karw Toofuzzy 07/29/16 06:48:32 PM
#41037   Hi SF Toofuzzy 07/29/16 06:44:31 PM
#41036   Hi SF Toofuzzy 07/29/16 06:40:59 PM
#41035   Maybe Buy some of one, wait for it ls7550 07/29/16 05:08:10 PM
#41034   Yes ... different symbols. VIX is a mathematical The Grabber 07/29/16 04:09:37 PM
#41033   Hi Toofuzzy, karw 07/29/16 04:09:10 PM
#41032   Hi Toofuzzy, I, too, use TDAmeritrade and was SFSecurity 07/29/16 02:46:53 PM
#41031   Hi Toofuzzy, In the online calculator there SFSecurity 07/29/16 02:40:13 PM
#41030   Hi Is7550, OMG! Thanks, I think. What you SFSecurity 07/29/16 02:19:19 PM
#41029   Karw What did you have to do to participate Toofuzzy 07/29/16 01:57:05 PM
#41028   UBA karw 07/29/16 06:11:52 AM
#41027   Hi Adam Toofuzzy 07/28/16 11:06:58 PM
#41026   Hi SF Toofuzzy 07/28/16 11:04:05 PM
#41025   I'm not sure I understand what you mean ls7550 07/28/16 04:22:17 PM
#41024   Hi Adam, given the short ranges that seem SFSecurity 07/28/16 02:01:10 PM
#41023   Hi Toof. The Grabber 07/28/16 01:28:35 PM
#41022   Hi Clive, I'm not sure I understand what SFSecurity 07/28/16 12:48:11 PM
#41021   Hi Grabber Toofuzzy 07/28/16 11:39:26 AM
#41020   Once you get your head wrapped around derivations ls7550 07/28/16 07:41:42 AM
#41019   Hi Steve ls7550 07/28/16 07:14:49 AM
#41018   Thanks Clive. The Grabber 07/27/16 04:56:08 PM
#41017   Of the two XIV (inverse VIX) is more ls7550 07/27/16 04:43:39 PM
#41016   Hi Clive: The Grabber 07/27/16 04:15:04 PM
#41015   Hi Adam Toofuzzy 07/27/16 03:42:00 PM
#41014   Had another buy in IYE the energy ETF. Adam 07/27/16 01:51:24 PM
#41013   RE: Long VIX vs short VIX ls7550 07/26/16 06:52:10 PM
#41012   Congrats Toof! The Grabber 07/26/16 04:18:44 PM
#41011   UBA update karw 07/26/16 03:27:37 PM
#41010   Just sold 5.5% of my shares of XIV Toofuzzy 07/26/16 01:48:13 PM
#41009   Congrats Clive! The Grabber 07/26/16 12:49:53 PM
#41008   Thanks, Marv. Take care. Jon JDerb 07/25/16 06:10:28 PM
#41007   Thanks Jderb for the update. I appreciate your Mvls 07/25/16 10:47:14 AM
#41006   VWave for the week of July 29th JDerb 07/25/16 10:11:58 AM
#41005   Hi Adam Toofuzzy 07/25/16 02:35:27 AM
#41004   Do you guys round off your orders or Adam 07/25/16 12:37:36 AM
#41003   Hi Is7550, I've used Startpage since it began SFSecurity 07/24/16 02:41:34 AM
#41002   In theory I like this. Same upside, less Toofuzzy 07/23/16 11:41:26 AM