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

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Last Post: 12/19/2014 7:53:35 PM - Followers: 252 - 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
#38876   Hi Allen, Re: Biotech ETF............... OldAIMGuy 12/19/14 07:53:35 PM
#38875   Hi SF Toofuzzy 12/19/14 07:51:17 PM
#38874   Hi OldAimGuy, Is that biotech ETF PBE ? Knowing SFSecurity 12/19/14 06:53:32 PM
#38873   Hi Toofuzzy, Yes, I am AIMing about one SFSecurity 12/19/14 06:31:53 PM
#38872   Hi Art, Thanks for your kind words. SFSecurity 12/19/14 06:17:04 PM
#38871   Hi ocroft Toofuzzy 12/19/14 05:11:07 PM
#38870   Biotech Sale today...................... OldAIMGuy 12/19/14 03:55:54 PM
#38869   Hi Toofuzzy ocroft 12/19/14 03:47:52 PM
#38868   Re: Energy Sector........................ OldAIMGuy 12/19/14 12:26:19 PM
#38867   Hi SF Toofuzzy 12/19/14 09:03:20 AM
#38866   Hi Clive Toofuzzy 12/19/14 08:43:57 AM
#38865   All the discussion we've had about the Orcroft AIM1979 12/19/14 12:26:04 AM
#38864   BTW, you used the Orcroft Method on both ls7550 12/18/14 11:19:12 PM
#38863   Hi Clive, It's as I have said, AIM, SFSecurity 12/18/14 08:51:07 PM
#38862   Fully 22 of the 41 Worst Performing Stocks OldAIMGuy 12/18/14 06:25:59 PM
#38861   Hi Allen ls7550 12/18/14 05:02:59 PM
#38860   Hi Clive, Your post about the results for SFSecurity 12/18/14 01:59:55 PM
#38859   Here are some figures for STKL backtest from ls7550 12/18/14 12:44:56 PM
#38858   Hi Toofuzzy : RE delayed trades ls7550 12/18/14 12:27:45 PM
#38857   Hi Allen, Re: ETFs and Indexes......................... OldAIMGuy 12/18/14 11:31:39 AM
#38856   Hi Ocroft, jaiml 12/18/14 09:30:34 AM
#38855   Godfrey Daniel!, as W.C. Fields used to say, SFSecurity 12/18/14 01:14:45 AM
#38854   Thanks Tom Toofuzzy 12/17/14 07:15:53 PM
#38853   Hi Tf, lrp42 12/17/14 06:46:33 PM
#38852   Hi Toof, Re: Fibonacci Numbers and Investing.................... OldAIMGuy 12/17/14 02:47:19 PM
#38851   Hi Toof, Re: Residual "Advice".................... OldAIMGuy 12/17/14 02:44:03 PM
#38850   Anyone know of any good and simple books Toofuzzy 12/17/14 01:25:35 PM
#38849   Hi jaiml ocroft 12/17/14 01:15:36 PM
#38848   With delayed trades you can get huge residual Toofuzzy 12/17/14 12:19:56 PM
#38847   Re: Newport and looking for residual "buy" amounts............... OldAIMGuy 12/17/14 11:42:50 AM
#38846   Thanks, seen those date problems myself. Busy at ls7550 12/17/14 04:17:39 AM
#38845   Hi Clive, Very funny response! Kept me laughing SFSecurity 12/17/14 01:23:27 AM
#38844   Hi Clive, A couple of weird things about SFSecurity 12/17/14 01:17:55 AM
#38843   Re: SSO Delayed Example jaiml 12/16/14 10:08:58 PM
#38842   Added to my shares of STKL, FTEK, and Toofuzzy 12/16/14 09:34:02 PM
#38841   This e-mail may, and probably does, contain factual ls7550 12/16/14 08:05:08 PM
#38840   Standard AIM = buy (sell) as and when ls7550 12/16/14 07:58:05 PM
#38839   New link ls7550 12/16/14 07:29:07 PM
#38838   Hi Clive, Maybe I'm not reading what you SFSecurity 12/16/14 07:14:09 PM
#38837   Hi Clive, Link to the new version, please? SFSecurity 12/16/14 06:55:21 PM
#38836   Hi Clive, Oh dear, I remember the ZX SFSecurity 12/16/14 06:52:03 PM
#38835   Energy/oil fans: another IYE buy executed by GTC AdamHelberg 12/16/14 01:01:48 PM
#38834   Two styles of Ocroft's approach ls7550 12/16/14 12:24:33 PM
#38833   I figured out the bug in the worksheet ls7550 12/16/14 12:01:07 PM
#38832   Oh I've used computers - a lot. Come ls7550 12/16/14 05:02:48 AM
#38831   Hi Alton, I don't think we are near SFSecurity 12/15/14 11:03:09 PM
#38830   Hi Clive, Google being what it is it SFSecurity 12/15/14 10:56:32 PM
#38829   Hey KARW, Alton 12/15/14 08:43:10 PM
#38828   Hi Clive, I must say for a person SFSecurity 12/15/14 07:34:00 PM
#38827   This requires a google account ls7550 12/15/14 04:20:07 PM