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Last Post: 10/20/2014 1:33:50 PM - Followers: 251 - Board type: Free - Posts Today: 5

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.
http://www.amazon.com/How-Make-Stock-Market-Automatically-ebook/dp/B002VKJ1EI/ref=sr_1_1?s=books&ie=UTF8&qid=1395757939&sr=1-1&keywords=lichello


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: http://www.aim-users.com/index.html AIM Weekly Newsletter (free): http://www.aim-users.com/3bbs.htm AIM Stock Examples: http://www.aim-users.com/pic.htm

AIM "Cash Burn" Chart

http://www.aim-users.com/cashburn.htm AIM Exchange Traded Funds (ETFs) Board http://www.investorshub.com/boards/board.asp?board_id=1292 Tom's Retirement Account with ETFs http://www.aim-users.com/etfunds.htm Software for AIM accounts: http://www.aim-users.com/aimware.htm 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: http://www.investorshub.com/boards/board.asp?board_id=992 and http://www.aim-users.com/qanda.htm 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: http://www.investorshub.com/boards/board.asp?board_id=1010 Newsletter Archives - http://www.aim-users.com/archive.htm AIM for "Rational Exuberance," Tom Veale

PostSubject
#37900  Sticky Note Updated v-Wave graph............................ OldAIMGuy 07/31/14 02:17:09 PM
#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 www.aim-users.com This is a copy of www.aim-users.com 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
#38427   Hi jaiml Toofuzzy 10/20/14 01:33:50 PM
#38426   Re: Termvest - Getting a Lump Sum working OldAIMGuy 10/20/14 12:59:24 PM
#38425   VWave for the Week of October 24th JDerb 10/20/14 10:39:05 AM
#38424   Here's a backtest that may be of some interest. ls7550 10/20/14 10:11:40 AM
#38423   Thanks @toolfuzzy. Makes sense. jaiml 10/20/14 09:40:43 AM
#38422   Hi Toof, Re: getting an AIM started, not OldAIMGuy 10/18/14 09:01:27 AM
#38421   Allen The best time to start investing is yesterday. Toofuzzy 10/17/14 06:24:55 PM
#38420   Hi karw, How far back do you start SFSecurity 10/17/14 05:15:42 PM
#38419   Hi Toofuzzy, In general good advice, but the SFSecurity 10/17/14 05:12:30 PM
#38418   Hi jaiml Toofuzzy 10/17/14 03:28:51 PM
#38417   Thanks Tom! jaiml 10/17/14 02:21:09 PM
#38416   Hi Jaiml, Re: LD-AIM................... OldAIMGuy 10/17/14 02:20:25 PM
#38415   Hi karw, re NO-DOWN AIM: jaiml 10/17/14 02:20:00 PM
#38414   Hi Grabber, re LD-AIM: jaiml 10/17/14 02:05:20 PM
#38413   Hi Allen, karw 10/17/14 12:07:12 PM
#38412   Started a new program using GVAL, Cambria global jaiml 10/16/14 12:10:10 PM
#38411   1) decide what you want to own. Toofuzzy 10/15/14 10:56:27 PM
#38410   Stay with the major indexes and stay away Toofuzzy 10/15/14 10:54:29 PM
#38409   Speaking of hedge funds, WSJ says that "Market SFSecurity 10/15/14 07:38:57 PM
#38408   Thanks, karw. I guess I'll have to look SFSecurity 10/15/14 06:21:40 PM
#38407   Hi Not Always Toofuzzy, Alas, irony is very SFSecurity 10/15/14 06:16:04 PM
#38406   Re: Busy Day............... OldAIMGuy 10/15/14 05:35:28 PM
#38405   I'm also starting to see some AIM directed AdamHelberg 10/15/14 03:17:18 PM
#38404   6% buy in VGK today karw 10/15/14 10:02:50 AM
#38403   Hi Allen, karw 10/15/14 02:03:22 AM
#38402   Hi Allen Toofuzzy 10/14/14 10:17:42 PM
#38401   Hi karw, Isn't GNAT a bit thinly traded? SFSecurity 10/14/14 08:35:41 PM
#38400   Need a shot of volatility? Try HZNP! Great SFSecurity 10/14/14 08:25:36 PM
#38399   Hi Tom Toofuzzy 10/14/14 04:34:18 PM
#38398   Does it matter when you sell and when Toofuzzy 10/14/14 04:31:29 PM
#38397   GTC Orders OldAIMGuy 10/14/14 03:39:14 PM
#38396   Hi K, Re: GNAT............... OldAIMGuy 10/14/14 01:18:24 PM
#38395   Hi Tom, karw 10/14/14 01:07:45 PM
#38394   Hi Toof, Re: v-Wave Logic.............. OldAIMGuy 10/14/14 12:34:29 PM
#38393   You may want to spend your time deciding AIM1979 10/14/14 12:07:27 PM
#38392   Delaying Aim trades Toofuzzy 10/13/14 11:33:49 PM
#38391   With the market going down, you will have Toofuzzy 10/13/14 11:22:47 PM
#38390   A red swan is not Toofuzzy 10/13/14 10:47:09 PM
#38389   OK so here is my logic Toofuzzy 10/13/14 10:34:44 PM
#38388   Thanks, Toofuzzy, for the perspective. I hadn't looked SFSecurity 10/13/14 09:01:11 PM
#38387   VWave for the Week of October 17th JDerb 10/13/14 11:33:09 AM
#38386   Allen Mortgage reits are a nasty security. First their Toofuzzy 10/11/14 09:14:56 AM
#38385   Also check out SVXY Toofuzzy 10/11/14 09:07:23 AM
#38384   Hi tom Toofuzzy 10/11/14 09:03:01 AM
#38383   Re: Return of capital is more important than SFSecurity 10/10/14 08:30:08 PM
#38382   XIV - Inverse VIX ETN jaiml 10/10/14 07:16:10 PM
#38381   Hi Toof, Re: Precious Metals................... OldAIMGuy 10/10/14 12:05:31 PM
#38380   Return of capital is more important than return Toofuzzy 10/10/14 11:43:48 AM
#38379   I picked up some international mid-cap growth ETF OldAIMGuy 10/10/14 11:26:37 AM
#38378   haha that is funny :) jaiml 10/10/14 09:26:21 AM
PostSubject