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

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Last Post: 10/25/2014 1:04:59 PM - Followers: 251 - Board type: Free - Posts Today: 5

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

#37900  Sticky Note Updated v-Wave graph............................ OldAIMGuy 07/31/14 02:17:09 PM
#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
#38452   Hi jaiml Toofuzzy 10/25/14 01:04:59 PM
#38451   Toof, good trade. jaiml 10/25/14 12:56:30 PM
#38450   Hi Grabber, jaiml 10/25/14 12:31:29 PM
#38449   Thanks Grabber. jaiml 10/25/14 12:13:26 PM
#38448   Re: That's not a bad return for an OldAIMGuy 10/25/14 11:20:39 AM
#38447   Hi Adam, Tom:As with the % of Transaction, The Grabber 10/24/14 06:03:28 PM
#38446   So far it looks like I should have Toofuzzy 10/24/14 03:51:54 PM
#38445   Thanks Adam, Re: Commission Costs as a percent OldAIMGuy 10/24/14 03:25:50 PM
#38444   Hi Toof, I owned shares of IBB years AdamHelberg 10/24/14 02:38:01 PM
#38443   Trading costs: AdamHelberg 10/24/14 02:33:12 PM
#38442   Congratulations Toof, OldAIMGuy 10/24/14 11:31:41 AM
#38441   I didnt have too many shares left so Toofuzzy 10/24/14 10:09:36 AM
#38440   Hi Tom. The Grabber 10/22/14 04:38:59 PM
#38439   Hi Clive. The Grabber 10/22/14 04:18:15 PM
#38438   Hi jaiml The Grabber 10/22/14 04:12:54 PM
#38437   Hi jaiml. The Grabber 10/22/14 03:41:22 PM
#38436   Hi Allen, OldAIMGuy 10/22/14 10:34:31 AM
#38435   Hi jaiml, karw 10/22/14 08:00:21 AM
#38434   Hi Tom, The AIMBARES.XLS spreadsheet is set up SFSecurity 10/22/14 12:08:14 AM
#38433   Hi Toof, If you leave everything else the OldAIMGuy 10/21/14 07:31:00 PM
#38432   Hi Tom Toofuzzy 10/21/14 02:13:41 PM
#38431   Re: Value Wave Graph Update.......................... OldAIMGuy 10/21/14 12:49:09 PM
#38430   30% range between yearly market low and high ls7550 10/21/14 11:24:35 AM
#38429   Good morning Allen, Re: SAFE settings.............. OldAIMGuy 10/21/14 08:27:08 AM
#38428   Thanks for the link, Tom, to the old SFSecurity 10/21/14 02:46:24 AM
#38427   Hi jaiml Toofuzzy 10/20/14 01:33:50 PM
#38426   Re: Termvest - Getting a Lump Sum working OldAIMGuy 10/20/14 12:59:24 PM
#38425   VWave for the Week of October 24th JDerb 10/20/14 10:39:05 AM
#38424   Here's a backtest that may be of some interest. ls7550 10/20/14 10:11:40 AM
#38423   Thanks @toolfuzzy. Makes sense. jaiml 10/20/14 09:40:43 AM
#38422   Hi Toof, Re: getting an AIM started, not OldAIMGuy 10/18/14 09:01:27 AM
#38421   Allen The best time to start investing is yesterday. Toofuzzy 10/17/14 06:24:55 PM
#38420   Hi karw, How far back do you start SFSecurity 10/17/14 05:15:42 PM
#38419   Hi Toofuzzy, In general good advice, but the SFSecurity 10/17/14 05:12:30 PM
#38418   Hi jaiml Toofuzzy 10/17/14 03:28:51 PM
#38417   Thanks Tom! jaiml 10/17/14 02:21:09 PM
#38416   Hi Jaiml, Re: LD-AIM................... OldAIMGuy 10/17/14 02:20:25 PM
#38415   Hi karw, re NO-DOWN AIM: jaiml 10/17/14 02:20:00 PM
#38414   Hi Grabber, re LD-AIM: jaiml 10/17/14 02:05:20 PM
#38413   Hi Allen, karw 10/17/14 12:07:12 PM
#38412   Started a new program using GVAL, Cambria global jaiml 10/16/14 12:10:10 PM
#38411   1) decide what you want to own. Toofuzzy 10/15/14 10:56:27 PM
#38410   Stay with the major indexes and stay away Toofuzzy 10/15/14 10:54:29 PM
#38409   Speaking of hedge funds, WSJ says that "Market SFSecurity 10/15/14 07:38:57 PM
#38408   Thanks, karw. I guess I'll have to look SFSecurity 10/15/14 06:21:40 PM
#38407   Hi Not Always Toofuzzy, Alas, irony is very SFSecurity 10/15/14 06:16:04 PM
#38406   Re: Busy Day............... OldAIMGuy 10/15/14 05:35:28 PM
#38405   I'm also starting to see some AIM directed AdamHelberg 10/15/14 03:17:18 PM
#38404   6% buy in VGK today karw 10/15/14 10:02:50 AM
#38403   Hi Allen, karw 10/15/14 02:03:22 AM