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

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Last Post: 5/23/2015 10:56:35 AM - Followers: 253 - Board type: Free - Posts Today: 2

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
#39595   Given that the FOREX manipulation had gone on ls7550 05/23/15 10:56:35 AM
#39594   Hi Allen re manipulation Toofuzzy 05/23/15 09:50:53 AM
#39593   Hi Allen.... Manipulation? Check the Commitment of Traders report JDerb 05/22/15 09:03:07 PM
#39592   So what does everyone think of the settlement SFSecurity 05/22/15 06:43:07 PM
#39591   Sorry Steve, didn't mean to call you Clive. SFSecurity 05/22/15 06:31:07 PM
#39590   Hi Clive, So, given that we are long SFSecurity 05/22/15 06:00:50 PM
#39589   H j The Grabber 05/22/15 05:37:56 PM
#39588   Re: How is the above not LD-AIM? The Grabber 05/22/15 05:07:15 PM
#39587   Hi Allen, Thanks for the ideas. OldAIMGuy 05/22/15 11:24:49 AM
#39586   Hi Gang, Two new VIX based ETFs, VXUP SFSecurity 05/21/15 11:42:47 PM
#39585   Hey Jaiml, Alton 05/21/15 04:18:54 PM
#39584   Hi Jamil, Yea, got to watch for big SFSecurity 05/21/15 12:41:28 PM
#39583   Hi Allen, jaiml 05/21/15 09:37:14 AM
#39582   Hi @Tool, jaiml 05/21/15 09:24:53 AM
#39581   Hey Tom, you'd better tell Investopedia so they SFSecurity 05/20/15 11:31:19 PM
#39580   Hi Allen, Re: Rocar.................... OldAIMGuy 05/20/15 10:48:54 PM
#39579   Grabber, re LD-AIM and the extra cash jaiml 05/20/15 10:39:20 PM
#39578   Re: Jaiml's Math jaiml 05/20/15 10:26:11 PM
#39577   Thanks Grabber. jaiml 05/20/15 10:18:15 PM
#39576   Hi Grabber, jaiml 05/20/15 10:06:08 PM
#39575   Thanks Tom for the lesson on stuff, SFSecurity 05/20/15 07:57:22 PM
#39574   Hi Gang, Being a little brain dead today SFSecurity 05/20/15 07:27:08 PM
#39573   Congrats j! The Grabber 05/20/15 05:47:40 PM
#39572   I didnt have a GTC order in on Toofuzzy 05/20/15 05:42:50 PM
#39571   Hi again Allen. The Grabber 05/20/15 05:30:26 PM
#39570   Hi Allen: The Grabber 05/20/15 05:23:40 PM
#39569   Hi again j. The Grabber 05/20/15 05:18:17 PM
#39568   Hi Grabber, quite funny you asking the same SFSecurity 05/20/15 04:12:19 PM
#39567   Hi Jamil, Thanks for the clarification. It shows SFSecurity 05/20/15 04:06:07 PM
#39566   Hi Jamil, Have they changed the rules for SFSecurity 05/20/15 03:46:22 PM
#39565   Had a sell in UVV today jaiml 05/20/15 02:50:54 PM
#39564   Hi @Tool, jaiml 05/20/15 02:37:49 PM
#39563   Hi Grabber, jaiml 05/20/15 02:20:16 PM
#39562   Hiya j. The Grabber 05/20/15 01:59:05 PM
#39561   Thanks @Clive, jaiml 05/20/15 01:58:22 PM
#39560   Hi Allen, jaiml 05/20/15 01:05:41 PM
#39559   Hi @Grabber, RE: CREE jaiml 05/20/15 12:25:18 PM
#39558   RE: #3 on CREE The Grabber 05/20/15 11:32:11 AM
#39557   HI Allen, Re: Stockcharts Perfcharts tips and tricks............... OldAIMGuy 05/20/15 11:15:17 AM
#39556   Hi Gang, Follow up to last post. Although SFSecurity 05/19/15 11:35:17 PM
#39555   Hi Gang, Froggy's Wild Ride! SFSecurity 05/19/15 11:02:20 PM
#39554   Added to my shares today of SLW about Toofuzzy 05/19/15 02:14:36 PM
#39553   Hi JD, Re: the v-Wave............... OldAIMGuy 05/19/15 12:44:34 PM
#39552   VWave for the week of May 22nd JDerb 05/19/15 10:41:24 AM
#39551   Re #2 on CREE The Grabber 05/18/15 03:06:31 PM
#39550   HI Allen, Re: BETA at MorningStar............... OldAIMGuy 05/18/15 12:30:50 PM
#39549   Hi Tom, Out of curiosity I tried EGY SFSecurity 05/18/15 03:46:36 AM
#39548   Hi Allen. Yahoo adjusted close prices reflect splits ls7550 05/18/15 03:04:24 AM
#39547   Hi Gang, Jamil referred to using adjusted Yahoo SFSecurity 05/17/15 08:56:16 PM
#39546   Hi Jamil, Is the data in the side SFSecurity 05/17/15 07:38:12 PM