Fidelity SPDR 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: 8/30/2014 11:45:36 AM - Followers: 250 - 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

#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 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
#38022   N = Portfolio Control ls7550 08/30/14 11:45:36 AM
#38021   Re: Mexican Peso/US $ peg question ls7550 08/30/14 06:43:30 AM
#38020   Wow, nobody seems to have noticed. OldAIMGuy 08/29/14 09:57:38 PM
#38019   Re AIM Hold Zone calculation SFSecurity 08/29/14 09:49:19 PM
#38018   Hi Mr. Grabber, SFSecurity 08/29/14 09:42:19 PM
#38017   Hi Is7550, SFSecurity 08/29/14 09:06:30 PM
#38016   Hi Tom, SFSecurity 08/29/14 08:56:55 PM
#38015   Right you are Clive. The Grabber 08/29/14 07:08:47 PM
#38014   Re AIM Hold Zone calculation ls7550 08/29/14 04:41:52 PM
#38013   As to one being advantageous over the other? ls7550 08/29/14 03:15:11 PM
#38012   Ha! Didn't even notice the post counts. The Grabber 08/29/14 01:28:02 PM
#38011   Hi again Allen: The Grabber 08/29/14 01:22:14 PM
#38010   Looks like GRABBER gets another secret decoder ring. Toofuzzy 08/29/14 01:16:29 PM
#38009   Hi Allen. The Grabber 08/29/14 12:50:10 PM
#38008   Thanks JD, Are you sure that's not a OldAIMGuy 08/29/14 11:09:29 AM
#38007   There's a hidden (although its mentioned in the ls7550 08/29/14 10:48:42 AM
#38006   This week AAII's editor, Charles Rotblut, wrote about JDerb 08/29/14 10:22:39 AM
#38005   Newport floppy disk, then you'd be all set ls7550 08/29/14 10:09:10 AM
#38004   Hi Allen, Re: Older AIM books................. OldAIMGuy 08/29/14 09:19:10 AM
#38003   Can I chime in with a question? SFSecurity 08/28/14 08:04:36 PM
#38002   Thanks OldAIMGuy. SFSecurity 08/28/14 07:41:53 PM
#38001   Hey Tom, you'll never guess what I got SFSecurity 08/28/14 07:26:34 PM
#38000   Apologies Toof. The Grabber 08/28/14 06:46:48 PM
#37999   Yeah. The Grabber 08/28/14 06:40:02 PM
#37998   RE: AIM-HI Quarterly ls7550 08/28/14 06:26:35 PM
#37997   American Airlines have also been flying higher ls7550 08/28/14 06:02:42 PM
#37996   Hi Toof, Re: CGNX......................... OldAIMGuy 08/28/14 04:33:47 PM
#37995   Hi Grabber Toofuzzy 08/28/14 04:16:27 PM
#37994   The other benefit of AIM is that over ls7550 08/28/14 02:38:36 PM
#37993   Hi Steve. I'd forgotten that myself. I uploaded ls7550 08/28/14 12:09:10 PM
#37992   Hi Clive. The Grabber 08/28/14 10:58:31 AM
#37991   Hi Tom. The Grabber 08/28/14 10:47:40 AM
#37990   Beta looks at amplitude and direction of price OldAIMGuy 08/28/14 09:11:09 AM
#37989   Hi Allen, OldAIMGuy 08/28/14 08:57:08 AM
#37988   Fits well with AIM ls7550 08/28/14 08:20:04 AM
#37987   Hi Allen. Have to be brief, off to ls7550 08/28/14 03:27:34 AM
#37986   RE: Parameters & Vealie SFSecurity 08/28/14 03:13:41 AM
#37985   Re: AIM performance....... ls7550 08/28/14 02:27:34 AM
#37984   Screening metric possibilities: SFSecurity 08/27/14 11:52:25 PM
#37983   Thanks AIM1979. SFSecurity 08/27/14 11:02:29 PM
#37982   Hi Allen, AIM1979 08/26/14 11:22:28 PM
#37981   I have to admit to an embarrassment. I SFSecurity 08/26/14 05:59:39 PM
#37980   Re: how AIM behaves... SFSecurity 08/26/14 05:48:12 PM
#37979   Hi Allen, Re: AIM performance.................... OldAIMGuy 08/26/14 01:50:12 PM
#37978   Hi Allen, OldAIMGuy 08/26/14 12:30:33 PM
#37977   Hi SF Toofuzzy 08/26/14 09:20:24 AM
#37976   Hi Gang, SFSecurity 08/26/14 12:18:12 AM
#37975   Where is Tom's AIM site? I thought SFSecurity 08/25/14 08:03:34 PM
#37974   Hi again Allen. The Grabber 08/25/14 11:10:43 AM
#37973   VWave for the Week of August 29th JDerb 08/25/14 11:01:47 AM