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

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Last Post: 4/29/2016 3:48:25 PM - Followers: 262 - Board type: Free - Posts Today: 6

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
#40635   Hi Steve, AXAS Firebird400 04/29/16 03:48:25 PM
#40634   Google " toofuzzy quick aim calculator" Toofuzzy 04/29/16 12:26:59 PM
#40633   Thanks j. The Grabber 04/29/16 11:17:33 AM
#40632   Hi Steve, jaiml 04/29/16 10:59:41 AM
#40631   Hi OG and welcome to the club! The Grabber 04/29/16 10:18:09 AM
#40630   HI Ken. The Grabber 04/29/16 09:51:03 AM
#40629   Re: Buy And Sell, Firebird400 04/27/16 08:50:20 AM
#40628   Hi Firebird400, I'm curious, what did you SFSecurity 04/26/16 10:58:49 PM
#40627   Update #6 Firebird400 04/26/16 12:40:06 PM
#40626   Hi Allen, Re: LEE Firebird400 04/26/16 11:40:40 AM
#40625   Dividend... Firebird400 04/26/16 09:42:54 AM
#40624   VWave for the week of April 29th JDerb 04/25/16 10:22:48 AM
#40623   Hi SF Toofuzzy 04/23/16 08:28:49 PM
#40622   Hi Toofuzzy, All I got when I did SFSecurity 04/23/16 02:11:57 PM
#40621   Thanks Is7550, That works, but what SFSecurity 04/23/16 02:05:00 PM
#40620   Hi SF Toofuzzy 04/23/16 12:20:30 PM
#40619   how to capture the calculations behind the online ls7550 04/23/16 12:13:23 PM
#40618   Hi SF Toofuzzy 04/23/16 12:12:27 PM
#40617   Hi Toofuzzy, I've misplaced the post number where SFSecurity 04/23/16 12:47:36 AM
#40616   Hi Toofuzzy, Thanks for the explanation. It helps. SFSecurity 04/23/16 12:22:32 AM
#40615   Hi Gang, I came across LEE and SFSecurity 04/23/16 12:07:08 AM
#40614   I have been delaying selling some of my Toofuzzy 04/22/16 07:26:20 PM
#40613   Hi SF Toofuzzy 04/22/16 03:22:42 PM
#40612   Data looks to be sourced from Robert Shiller's ls7550 04/22/16 01:19:33 PM
#40611   Hi Toofuzzy, Sorry about not being clear SFSecurity 04/22/16 12:48:46 PM
#40610   Hi Gang, Neat little calculator for S&P SFSecurity 04/21/16 10:50:19 PM
#40609   Hi SF Toofuzzy 04/21/16 09:11:11 PM
#40608   Hi Gang, As you may remember when I SFSecurity 04/21/16 01:22:15 AM
#40607   Hi Allen, Re: AIM trades and order size............ OldAIMGuy 04/20/16 12:46:13 PM
#40606   Hi SF Toofuzzy 04/20/16 01:29:21 AM
#40605   Hi Tom, In thinking about your post: SFSecurity 04/19/16 08:00:49 PM
#40604   Re: OT .... Simplicity Mowers...... OldAIMGuy 04/18/16 01:14:58 PM
#40603   VWave for the week of April 22nd JDerb 04/18/16 10:34:54 AM
#40602   Hi Tom, OT/ RE: Simplicity, Firebird400 04/17/16 02:39:47 PM
#40601   I always like feedback and to hear how Toofuzzy 04/15/16 05:55:32 PM
#40600   Thanks Tom, lrp42 04/15/16 11:59:54 AM
#40599   Hi Ray, OldAIMGuy 04/15/16 11:28:22 AM
#40598   We used to have a quick link to lrp42 04/15/16 08:33:15 AM
#40597   Hi OG, Thanks for the mention SFSecurity 04/13/16 01:42:44 PM
#40596   Re: Python programming link OldGrantonian 04/13/16 04:17:31 AM
#40595   Hi Tom, I said: SFSecurity 04/12/16 08:07:55 PM
#40594   Hi Tom, Yep, what you say SFSecurity 04/12/16 07:23:09 PM
#40593   Hi Aim1979 Toofuzzy 04/12/16 05:13:39 PM
#40592   Re: Strange calculation for AIM? OldGrantonian 04/12/16 01:10:38 PM
#40591   Hi Tom,Allen, Re: The Math, Firebird400 04/12/16 01:05:35 PM
#40590   Hi Allen, Re: Min Trade Size........... OldAIMGuy 04/12/16 11:13:20 AM
#40589   That's great if one has that amount of AIM1979 04/12/16 09:51:28 AM
#40588   Hi OldGrantonian, I stumbled across this today SFSecurity 04/12/16 01:45:41 AM
#40587   Hi Firebird400, Obviously you are doing well SFSecurity 04/12/16 01:36:01 AM
#40586   Hi Gang, Another one that hit recent SFSecurity 04/12/16 01:12:35 AM