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

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Last Post: 11/26/2015 7:00:05 PM - Followers: 259 - Board type: Free - Posts Today: 4

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
#40077   Happy Thanksgiving! Firebird400 11/26/15 07:00:05 PM
#40076   Happy Thanksgiving to you Tom and to all others! jaiml 11/26/15 05:36:58 PM
#40075   Happy Thanksgiving to you also. lostcowboy 11/26/15 09:58:05 AM
#40074   Happy Thanksgiving! OldAIMGuy 11/26/15 09:10:27 AM
#40073   Re: Expenses Firebird400 11/25/15 08:42:29 AM
#40072   Hi Ken, Yeah, ~0.1% expenses is about as SFSecurity 11/24/15 09:26:49 PM
#40071   Thanks, Ken. ;o) JDerb 11/24/15 12:13:09 PM
#40070   Hi Allen, Firebird400 11/23/15 07:01:33 PM
#40069   Hi Ken, First let me thank you for SFSecurity 11/23/15 04:40:19 PM
#40068   Thanks JDerb, Firebird400 11/23/15 02:37:54 PM
#40067   VWave for the week of November 27th JDerb 11/23/15 10:14:39 AM
#40066   SPGCX, Firebird400 11/20/15 01:54:30 PM
#40065   Receiving, Firebird400 11/19/15 10:15:34 AM
#40064   Shipping, Firebird400 11/18/15 02:02:05 PM
#40063   Hi Toofuzzy, Firebird400 11/18/15 01:53:55 PM
#40062   Hi Firebird Toofuzzy 11/18/15 12:41:44 PM
#40061   Re: STKL Firebird400 11/18/15 09:14:50 AM
#40060   Hi Allen, v-Wave Info..................... OldAIMGuy 11/17/15 04:30:43 PM
#40059   Hi Tom, Please post the V-Wave stuff in SFSecurity 11/17/15 04:26:51 PM
#40058   It means risk is moving down a bit. Toofuzzy 11/17/15 02:34:10 PM
#40057   What is a negative oscillator indicating on the Ganadero 11/17/15 01:56:20 PM
#40056   Sold shares of STKL today Toofuzzy 11/17/15 01:36:13 PM
#40055   Shipping Dept... Firebird400 11/17/15 10:58:33 AM
#40054   Picked Firebird400 11/16/15 03:44:50 PM
#40053   VWave for the week of November 20th JDerb 11/16/15 10:07:55 AM
#40052   R.O.C.A.R. = 144.04%, Firebird400 11/13/15 07:33:52 AM
#40051   Exactly. AIM is averaging down on steroids and AdamHelberg 11/12/15 02:28:30 PM
#40050   Toofuzzy 11/12/15 02:03:18 PM
#40049   With Aim you buy more as it goes Toofuzzy 11/12/15 02:03:01 PM
#40048   Nice article on AIM, Firebird400 11/12/15 09:52:25 AM
#40047   Hi Clacy, Firebird400 11/12/15 09:30:13 AM
#40046   Has anyone had luck AIM'ing penny stocks? clacy 11/11/15 08:56:24 PM
#40045   $1.75 Firebird400 11/11/15 03:37:24 PM
#40044   You are welcome here any time..... OldAIMGuy 11/11/15 08:34:19 AM
#40043   Sifting... Firebird400 11/11/15 08:23:12 AM
#40042   Thank you for taking the time to give Ganadero 11/10/15 04:49:26 PM
#40041   Hi Toof, Firebird400 11/10/15 12:27:39 PM
#40040   Hi G, The v-wave's direct calculation is calculated OldAIMGuy 11/10/15 10:01:21 AM
#40039   Sorry for dumb questions but what is the Ganadero 11/10/15 08:59:40 AM
#40038   So you are buying and selling more on Toofuzzy 11/09/15 05:35:33 PM
#40037   Hi Toof, Firebird400 11/09/15 01:07:04 PM
#40036   How does ATTIC differ from Aim ? Toofuzzy 11/09/15 12:33:28 PM
#40035   Hi Tom, Firebird400 11/09/15 12:27:56 PM
#40034   Thanks for the update and the comparisons................ OldAIMGuy 11/09/15 11:08:08 AM
#40033   VWave for the week of November 13th JDerb 11/09/15 10:55:12 AM
#40032   90 Day Update on RF Firebird400 11/08/15 02:35:59 PM
#40031   Another Sell on RF, Firebird400 11/06/15 09:47:06 AM
#40030   Hi Tom, Firebird400 11/06/15 09:44:25 AM
#40029   Hi Ken, Stock Picking Ideas............ OldAIMGuy 11/06/15 08:47:20 AM
#40028   Hi Toof, KRE Firebird400 11/06/15 07:31:41 AM