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

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Last Post: 3/23/2017 8:46:48 AM - Followers: 269 - 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
#41883   HI Allan Toofuzzy 03/23/17 08:46:48 AM
#41882   Over at amazon they have some pretty cheap lostcowboy 03/22/17 11:56:50 PM
#41881   Oh I can't stand the suspence. Toofuzzy 03/21/17 10:27:33 PM
#41880   Hi Gang, Here is one of the Gummy SFSecurity 03/21/17 10:11:34 PM
#41879   Hi Lostcowboy, and Gang; To find the single SFSecurity 03/21/17 06:10:19 PM
#41878   Update... Firebird400 03/21/17 09:57:28 AM
#41877   On the value averaging site be sure to lostcowboy 03/20/17 02:07:51 PM
#41876   Hi Lostcowboy, Hey, it's great if you're a SFSecurity 03/20/17 02:01:10 PM
#41875   VWave for the week of March 24th JDerb 03/20/17 11:24:46 AM
#41874   Lostcowboy No relation to me but I have a Toofuzzy 03/20/17 09:18:53 AM
#41873   OT: Fuzzy logic, anyone interested in this subject? lostcowboy 03/20/17 01:31:58 AM
#41872   Hi Is7550, if you have a google account, lostcowboy 03/19/17 02:28:18 AM
#41871   Hi Allen, I am a month behind reading lostcowboy 03/19/17 01:51:59 AM
#41870   Hi Toofuzzy, "It's all interconnected." Yep, and often SFSecurity 03/18/17 06:27:32 PM
#41869   The US has two FINANCIAL issues. The national Toofuzzy 03/18/17 11:39:55 AM
#41868   Yes Toofuzzy 03/18/17 11:21:29 AM
#41867   Hi Gang, Saw this interesting graphic about those SFSecurity 03/18/17 01:23:26 AM
#41866   Hi Toofuzzy, Do you mean LEAPS (Long-Term Equity SFSecurity 03/18/17 01:15:43 AM
#41865   HI Allen Toofuzzy 03/17/17 09:35:59 PM
#41864   HI Allen Toofuzzy 03/17/17 09:30:59 PM
#41863   Hi Toofuzzy, Yes, I've "started" investing and am SFSecurity 03/17/17 04:22:54 PM
#41862   Hi Toofuzzy, I use very deep in the SFSecurity 03/17/17 04:09:26 PM
#41861   Hi Clive, Boy, I understand your frustrations with SFSecurity 03/17/17 04:07:10 PM
#41860   AIM with Buy/Sell Vealies jaiml 03/17/17 10:58:55 AM
#41859   I use Interactive Brokers (as well as, TDAmeritrade, macprogrammer 03/16/17 11:26:36 PM
#41858   HI Allen Toofuzzy 03/16/17 11:03:41 PM
#41857   HI Clive Toofuzzy 03/16/17 10:53:41 PM
#41856   I use TO Ameritrade and Fidelity. I like Toofuzzy 03/16/17 10:47:53 PM
#41855   Hi Toofuzzy, Given what I've seen, you are SFSecurity 03/16/17 09:34:23 PM
#41854   You need to have LOTS of cash available ls7550 03/16/17 09:22:49 PM
#41853   Te leveraged ETFs that I own are Toofuzzy 03/16/17 08:06:30 PM
#41852   Hi Clive Toofuzzy 03/16/17 07:43:48 PM
#41851   Leveraged ETF's scale up volatility. ls7550 03/16/17 06:44:15 PM
#41850   Allen Aim takes a whole business cycle or more Toofuzzy 03/16/17 01:26:19 PM
#41849   Hi Toofuzzy, Yep, I understand the "smoke pouring SFSecurity 03/15/17 08:12:56 PM
#41848   Hi Gang, Of the 113 S&P 500 sector SFSecurity 03/14/17 06:38:44 PM
#41847   HI Allan Toofuzzy 03/14/17 03:00:30 PM
#41846   Hi Orcroft, Can Ray and Toofuzzy, Balbrec2, The SFSecurity 03/13/17 10:06:26 PM
#41845   VWave for the week of March 17th JDerb 03/13/17 10:18:49 AM
#41844   Hi Can Ray ocroft 03/13/17 12:42:48 AM
#41843   Hi Ocroft, CanRay 03/12/17 09:51:55 PM
#41842   Maybe it's just me, but I thought AIM balbrec2 03/12/17 08:17:21 PM
#41841   Altman Z Score ocroft 03/12/17 04:50:47 PM
#41840   I will let Aim tell me what to do. Toofuzzy 03/11/17 09:46:49 PM
#41839   Hi Gang, I think I might have a SFSecurity 03/11/17 06:48:25 PM
#41838   Hi Allen, Adam 03/10/17 01:49:33 PM
#41837   Hi Adam, I understand your concern and it SFSecurity 03/09/17 08:33:11 PM
#41836   Hi Allen, I think it's crazy to AIM Adam 03/09/17 11:46:30 AM
#41835   Hi Toofuzzy, What, isn't auto correct smarter than SFSecurity 03/08/17 08:43:33 PM
#41834   I meant FTR was a dog for years. Toofuzzy 03/07/17 10:51:53 PM