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

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Last Post: 8/31/2015 8:26:50 AM - Followers: 256 - Board type: Free - Posts Today: 1

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
#39873   Hi SF, Firebird400 08/31/15 08:26:50 AM
#39872   Hi gang, Froggy's wild ride, eh? So, is SFSecurity 08/27/15 02:45:56 PM
#39871   Hi Clive, Maybe I'll get the names right SFSecurity 08/27/15 02:42:43 PM
#39870   Hi Clive, Re: CHY................ OldAIMGuy 08/27/15 10:54:10 AM
#39869   A risk factor for me is taxflation. I ls7550 08/27/15 10:25:42 AM
#39868   With a 2x, half in 2x, half in ls7550 08/27/15 09:46:17 AM
#39867   Hi Tf, lrp42 08/27/15 09:45:42 AM
#39866   Hi Ray Toofuzzy 08/27/15 08:49:16 AM
#39865   Hi Clive, lrp42 08/27/15 08:19:10 AM
#39864   Re VIXY ls7550 08/27/15 04:44:08 AM
#39863 and silver stocks are getting hammered! Alton 08/26/15 07:53:16 PM
#39862   Right Jon. A lot has happened over The Grabber 08/26/15 05:49:48 PM
#39861   Thank you for sharing, Steve. 15 years... Seems JDerb 08/26/15 05:41:42 PM
#39860   Addendum to Activity on VIXY... The Grabber 08/26/15 01:49:06 PM
#39859   Hiya Toof. The Grabber 08/26/15 12:50:03 PM
#39858   RE: Rob Hansen The Grabber 08/26/15 11:44:17 AM
#39857   Re: CHY jaiml 08/26/15 11:41:01 AM
#39856   CHY 10% dividend yield ls7550 08/26/15 10:27:44 AM
#39855   Hi Ken, It seems I misunderstood your post SFSecurity 08/25/15 06:53:15 PM
#39854   Hi Allen, Firebird400 08/25/15 07:29:38 AM
#39853   Hi Firebird400, Sorry to disagree, but TDAmeritrade says SFSecurity 08/24/15 10:12:01 PM
#39852   Closing Low Firebird400 08/24/15 08:34:58 PM
#39851   Hi Gang, Anybody up for a nickel bet? SFSecurity 08/24/15 04:13:46 PM
#39850   Hi Alton, It looked like it had hit, SFSecurity 08/24/15 03:51:10 PM
#39849   Also several buy orders in the UBA, especially karw 08/24/15 01:53:16 PM
#39848   I've had triggers on several exUS funds on OldAIMGuy 08/24/15 01:06:12 PM
#39847   Large buy this Firebird400 08/24/15 12:37:28 PM
#39846   Patients is a virtue Toofuzzy 08/24/15 11:20:42 AM
#39845   Got my 1st buy signal today. I KH874 08/24/15 10:51:25 AM
#39844   VWave for the week of August 28th JDerb 08/24/15 10:03:03 AM
#39843   Check out those futures... Firebird400 08/24/15 08:01:00 AM
#39842   Hi Toof, Firebird400 08/23/15 10:31:05 AM
#39841   @Toof, if I were to guess: jaiml 08/23/15 08:53:08 AM
#39840   Cant decide if I should add to my Toofuzzy 08/22/15 09:04:26 PM
#39839   Finally Firebird400 08/22/15 03:52:00 PM
#39838   Hey SF, Alton 08/21/15 10:16:49 PM
#39837   Hey K, Alton 08/21/15 06:02:19 PM
#39836   The business sector ETFs I use have been OldAIMGuy 08/21/15 05:48:51 PM
#39835   Hi Jaiml, So perhaps a safer thing to SFSecurity 08/21/15 04:27:14 PM
#39834   Hi Alton, karw 08/21/15 02:08:01 PM
#39833   Hi Jaiml, Personally I avoid starting new AIM AdamHelberg 08/21/15 01:52:41 PM
#39832   Hey Clive, Alton 08/21/15 06:54:24 AM
#39831   I've seen little in the way of dividend ls7550 08/21/15 05:10:00 AM
#39830   Hey Jaiml, Alton 08/20/15 09:09:54 PM
#39829   Buy'em back day... Firebird400 08/20/15 04:15:56 PM
#39828   Hi Alton, jaiml 08/20/15 08:10:45 AM
#39827   Jaiml, Allen, Tom, TooFuzzy; WinAudit 08/19/15 11:12:51 PM
#39826   WinAudit As others have told you, the spreadsheet is Toofuzzy 08/19/15 10:40:54 PM
#39825   Hi OAGuy & Jim, OldAIMGuy is right that SFSecurity 08/19/15 09:53:26 PM
#39824   Picked up a few more shares of COP Alton 08/19/15 07:01:21 PM