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: 2/11/2016 10:33:21 PM - Followers: 261 - Board type: Free - Posts Today: 0

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
#40360   Re Biotech, I used to own IBB when Adam 02/11/16 10:33:20 PM
#40359   "It's beginning to walk and quack like a Toofuzzy 02/11/16 07:54:45 PM
#40358   The Pocket Change Portfolio- Results, Firebird400 02/11/16 02:41:54 PM
#40357   It's beginning to walk and quack like a Ganadero 02/11/16 12:48:04 PM
#40356   Hi Tom Toofuzzy 02/11/16 09:03:57 AM
#40355   Hi Toof, Re: Biotech smashing.............. OldAIMGuy 02/11/16 07:33:06 AM
#40354   Added 39% to my holdings of BIB Toofuzzy 02/11/16 12:43:43 AM
#40353   Hi Tom, RE: Negative Rates, Firebird400 02/09/16 01:34:09 PM
#40352   Cash/ Stock Firebird400 02/09/16 11:10:09 AM
#40351   HI TOM 1step 02/08/16 10:44:27 PM
#40350   Hi K, Re: my UBA retirement account activity................. OldAIMGuy 02/08/16 03:49:36 PM
#40349   Thanks JD, Re: v-Wave................ OldAIMGuy 02/08/16 03:34:29 PM
#40348   Hi Clive, Thanks for the info on Newport's OldAIMGuy 02/08/16 03:33:34 PM
#40347   Hi 1Step, Re: S&P Guide books................. OldAIMGuy 02/08/16 03:30:55 PM
#40346   Re: v-Wave.............. OldAIMGuy 02/08/16 03:29:07 PM
#40345   With the market decline AIM is coming back Adam 02/08/16 02:34:59 PM
#40344   In the UBA: karw 02/08/16 01:56:51 PM
#40343   I know others have KRE as well. I Adam 02/08/16 12:33:51 PM
#40342   LSG Buyout... Firebird400 02/08/16 12:30:43 PM
#40341   VWave for the week of February 12th JDerb 02/08/16 11:18:33 AM
#40340   TOM NPTPASS.XPT Username and password file ls7550 02/05/16 06:09:27 PM
#40339   Hi Gang, Holy Moly, have you looked SFSecurity 02/04/16 03:19:06 AM
#40338   EWC Worth a look. Near 52 week low. Similar CanRay 02/03/16 10:41:44 PM
#40337   Nice pop on Gold and Silver. Looks Alton 02/03/16 09:30:36 PM
#40336   Hi I cant seem to locate standard poors 500 1step 02/02/16 10:21:51 PM
#40335   Hi Allen, for what it's worth I'm AIMing Adam 02/02/16 09:40:09 PM
#40334   Hi Gang, You might want to take a SFSecurity 02/02/16 05:48:17 PM
#40333   VWave for the week of February 5th JDerb 02/01/16 11:20:10 AM
#40332   Hi SF re: elements Firebird400 01/31/16 09:34:49 AM
#40331   Hi Gang, I suspect that Chevron, CVX , is SFSecurity 01/29/16 10:35:19 PM
#40330   Hi Firebird400, So what are the elements of SFSecurity 01/29/16 10:10:52 PM
#40329   "The Pocket Change Portfolio" Firebird400 01/29/16 03:18:07 PM
#40328   Hi Neko, As a general rule banks are Adam 01/28/16 12:37:53 AM
#40327   Hi Adam Tom neko 01/27/16 10:24:48 PM
#40326   Hi Niko, Re: Weights by sector in mutual fund.............. OldAIMGuy 01/27/16 02:02:37 PM
#40325   Hi Neko, I think the answer is yes. Adam 01/27/16 01:39:05 PM
#40324   Hi I have a question on copying a mutual neko 01/27/16 11:30:37 AM
#40323   Bought LSG, Firebird400 01/26/16 09:48:20 AM
#40322   Hi Tom, Yeah, little things do slip by SFSecurity 01/25/16 11:45:12 PM
#40321   Hi SF, How about subtracting the absolute value OldAIMGuy 01/25/16 08:02:29 PM
#40320   Hey Tom, My memory of math is certainly SFSecurity 01/25/16 07:15:33 PM
#40319   Thanks JD, Re: v-Wave value..................... OldAIMGuy 01/25/16 03:37:20 PM
#40318   VWave for the week of January 29th JDerb 01/25/16 10:49:19 AM
#40317   buy without the 30day karw 01/24/16 10:18:35 PM
#40316   Dear Karen, OldAIMGuy 01/23/16 01:02:35 PM
#40315   I see you guys are "still at it". karenseek 01/23/16 02:39:51 AM
#40314   Hi Adam, lrp42 01/22/16 12:00:18 PM
#40313   Hi Ray, The time period of that housing Adam 01/22/16 11:32:07 AM
#40312   Re: Housing Stocks: lrp42 01/22/16 10:46:35 AM
#40311   Hi Toofuzzy, Nah, too honest for my own SFSecurity 01/21/16 07:42:40 PM