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Last Post: 7/1/2016 11:06:00 PM - Followers: 263 - 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
#40895   Hi Ocroft, I bought TCK on 1/15/2008 at Adam 07/01/16 11:06:00 PM
#40894   An Observational Comment ocroft 07/01/16 05:24:36 PM
#40893   Hey Tom, I'd be damn proud if I SFSecurity 07/01/16 04:39:50 PM
#40892   Timmins Gold Corp. Ticker = TGD, Firebird400 07/01/16 01:17:20 PM
#40891   A Sell executed today in one of my Adam 07/01/16 01:17:07 PM
#40890   Re: 2nd Quarter, 2016 - A tough quarter OldAIMGuy 07/01/16 11:34:56 AM
#40889   Hi Alton & Allen, Firebird400 07/01/16 09:02:00 AM
#40888   Hi Alton, Great idea! A sector ETF is SFSecurity 06/30/16 10:44:00 PM
#40887   Sounds like a good guess. Thanks Jon. SFSecurity 06/30/16 09:46:13 PM
#40886   Sounds more complicated than I'd ever be willing The Grabber 06/30/16 06:16:04 PM
#40885   Hi Grabber Toofuzzy 06/29/16 10:12:13 PM
#40884   HIya Toof. The Grabber 06/29/16 04:14:14 PM
#40883   Toof, Go Firebird400 06/29/16 03:01:19 PM
#40882   Hi Grabber Toofuzzy 06/29/16 11:39:31 AM
#40881   Firebird How do you pick these stocks? Toofuzzy 06/29/16 11:35:22 AM
#40880   Congratulations Tom Toofuzzy 06/29/16 11:31:50 AM
#40879   Hi Allen. The Grabber 06/29/16 09:12:30 AM
#40878   Caught a Sell in the premarket this morning. The Grabber 06/29/16 09:02:23 AM
#40877   My guess would GIEW stands for Grabber's International The Grabber 06/29/16 08:49:12 AM
#40876   Hey Allen, Alton 06/29/16 08:22:05 AM
#40875   Hi CanRay, Firebird400 06/29/16 07:53:01 AM
#40874   HI Allen.. My guess would GIEW stands for Grabber's JDerb 06/29/16 12:23:22 AM
#40873   Thanks Steve, When you say "no safe" I SFSecurity 06/28/16 09:19:43 PM
#40872   Hi Firebird400, CanRay 06/28/16 08:46:25 PM
#40871   Update #7 Firebird400 06/28/16 04:11:30 PM
#40870   Hi Toof, Re: working on special events............. OldAIMGuy 06/28/16 02:20:50 PM
#40869   The warehouse was overworked yesterday ( monday ). Toofuzzy 06/28/16 10:39:25 AM
#40868   Hi again Adam The Grabber 06/28/16 08:48:11 AM
#40867   :-) There's a difference between trading and investing. The Grabber 06/27/16 06:31:05 PM
#40866   Hi Clive. The Grabber 06/27/16 06:15:11 PM
#40865   Hi again Allen The Grabber 06/27/16 05:30:49 PM
#40864   Hi Grabber, I'm using the basic AimBareS.xls spreadsheet SFSecurity 06/27/16 05:18:07 PM
#40863   Hi Tom, Thanks for the suggested portfolio allotments, SFSecurity 06/27/16 05:00:17 PM
#40862   Hi Allen. The Grabber 06/27/16 04:40:46 PM
#40861   UBA buys karw 06/27/16 03:01:40 PM
#40860   Hi Allen, Re: Stocks and ETFs; designing your OldAIMGuy 06/27/16 02:28:57 PM
#40859   If XBI closes below $50 today, I'll add Alton 06/27/16 02:04:31 PM
#40858   VWave for the week of July 1st JDerb 06/27/16 10:20:39 AM
#40857   Dear Clive, Re: EU/UK Split............. OldAIMGuy 06/27/16 09:21:16 AM
#40856   Hi Steve, I guess they're just Tea Teasers. OldAIMGuy 06/27/16 09:10:53 AM
#40855   Hi SF Toofuzzy 06/26/16 07:49:16 PM
#40854   Hi Adam, Since it is an inherited IRA SFSecurity 06/26/16 03:09:44 AM
#40853   Hi Toofuzzy, Thanks for the message. I have SFSecurity 06/26/16 02:11:08 AM
#40852   Hi Ray, I welcome you chiming in. It SFSecurity 06/26/16 02:05:13 AM
#40851   Thanks Adam Toofuzzy 06/26/16 01:12:49 AM
#40850   Hi Ray Toofuzzy 06/26/16 01:09:32 AM
#40849   Hi Allen, Diversification applies to your total Adam 06/26/16 01:02:06 AM
#40848   Hi SF Toofuzzy 06/26/16 12:50:09 AM
#40847   Hi Allen CanRay 06/26/16 12:11:49 AM
#40846   By the way, heard on TV that the ls7550 06/25/16 09:06:10 PM