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

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Last Post: 3/30/2015 6:56:15 PM - Followers: 252 - Board type: Free - Posts Today: 18

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: 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

#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
#39253   Bad typing strikes again. Meant to say $10,000, SFSecurity 03/30/15 06:56:15 PM
#39252   Thanks for looking that up Ray. Sounds good. SFSecurity 03/30/15 06:45:27 PM
#39251   Hi Is7550, What symbol is SCV? I can't SFSecurity 03/30/15 06:40:13 PM
#39250   Hi Ray Toofuzzy 03/30/15 05:36:36 PM
#39249   long term treasury once rates PEAK ls7550 03/30/15 04:21:51 PM
#39248   "buy low volatility and sell high volatility" ls7550 03/30/15 03:37:35 PM
#39247   Hi Tf, lrp42 03/30/15 02:38:15 PM
#39246   Hi Aimanager Toofuzzy 03/30/15 02:05:27 PM
#39245   Hi Ray Toofuzzy 03/30/15 01:57:25 PM
#39244   Hi Tom, lrp42 03/30/15 12:45:31 PM
#39243   Thanks JD, Good to see the Oscillator still OldAIMGuy 03/30/15 11:48:35 AM
#39242   Hi AI, Re: Rebalancing as an alternative to AIM....... OldAIMGuy 03/30/15 11:47:50 AM
#39241   Hi Ray, There's not much available toward the OldAIMGuy 03/30/15 11:26:02 AM
#39240   Thanks Clive, Re: What to do with cash OldAIMGuy 03/30/15 11:17:36 AM
#39239   VWave for the week of April 3rd JDerb 03/30/15 10:33:28 AM
#39238   Hi All, AImanager 03/30/15 08:17:17 AM
#39237   Hi Allen, lrp42 03/30/15 08:13:27 AM
#39236   Hi Ray, You might look at SPFF . It SFSecurity 03/30/15 01:08:33 AM
#39235   Rolling ladder of treasury bonds. Personally prefer a ls7550 03/29/15 03:25:46 PM
#39234   Hi Ray, OldAIMGuy 03/29/15 12:56:07 PM
#39233   Thanks, Tom... lrp42 03/29/15 12:38:58 PM
#39232   Hi Ray, OldAIMGuy 03/29/15 12:13:05 PM
#39231   Just curious.... lrp42 03/28/15 06:58:28 PM
#39230   Hi Jamil, I'm not talking about changing the SFSecurity 03/27/15 09:29:14 PM
#39229   RE: Hi Gang, About a split minimum stock jaiml 03/26/15 09:48:47 PM
#39228   Hi SF Toofuzzy 03/26/15 06:11:36 PM
#39227   Hi Gang, About a split minimum stock sale SFSecurity 03/26/15 05:05:26 PM
#39226   Hi Allen, jaiml 03/26/15 02:18:22 PM
#39225   Hi Allen, jaiml 03/26/15 02:14:15 PM
#39224   To all the forum members I apologize for ls7550 03/26/15 07:19:13 AM
#39223   Hi SF Toofuzzy 03/25/15 11:41:07 PM
#39222   Hi Jamil, I was looking at your EGY SFSecurity 03/25/15 09:21:16 PM
#39221   Hi Gang, Took the plunge and bought 3200 SFSecurity 03/25/15 08:15:31 PM
#39220   Sorry Gang, the images for this post did SFSecurity 03/25/15 07:38:01 PM
#39219   Hi Toofuzzy, the by the book standard for SFSecurity 03/25/15 05:36:21 PM
#39218   Hi Allen, lrp42 03/25/15 07:20:38 AM
#39217   Hi SF Toofuzzy 03/24/15 10:50:12 PM
#39216   Hi Jamil, You may well be right about SFSecurity 03/24/15 06:32:52 PM
#39215   Hi Ray, Thanks for the explanation of you SFSecurity 03/24/15 06:26:45 PM
#39214   Hi Toofuzzy, I'm sorry if you misunderstood my SFSecurity 03/24/15 06:18:32 PM
#39213   Hi Tf, lrp42 03/24/15 02:18:57 PM
#39212   Hi Ray Toofuzzy 03/24/15 01:59:19 PM
#39211   I meant that 5% of minimum trade size Toofuzzy 03/24/15 01:46:34 PM
#39210   Hi Ray, Thanks for the review of Core OldAIMGuy 03/24/15 11:27:54 AM
#39209   Good morning Allen, Re: BETA....................................... OldAIMGuy 03/24/15 10:59:43 AM
#39208   Hi Allen, jaiml 03/24/15 09:46:15 AM
#39207   AIM-HI Looking at it for a few months, I karw 03/24/15 09:35:42 AM
#39206   Hi Allen, lrp42 03/24/15 08:45:55 AM
#39205   By the way standard settings are not 10, ls7550 03/24/15 03:48:57 AM
#39204   Hi SF Toofuzzy 03/24/15 12:54:00 AM