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

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Last Post: 1/27/2015 2:38:52 PM - Followers: 254 - 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

#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
#39038   Hi Adam, Re: VNQ................. OldAIMGuy 01/27/15 02:38:51 PM
#39037   Hi Jack, I bought Automatic Investor 3 some AdamHelberg 01/27/15 02:29:52 PM
#39036   Yes Tom, I am still hailing from the lifo 01/27/15 01:44:04 PM
#39035   Well JJ!, Nice to see your smiling electrons OldAIMGuy 01/27/15 12:31:14 PM
#39034   Hello Tom, it has been a while (more lifo 01/27/15 09:58:58 AM
#39033   VWave for the Week of January 30th JDerb 01/26/15 09:52:44 AM
#39032   The Number Toofuzzy 01/25/15 10:57:34 AM
#39031   Hi Tom. The Grabber 01/25/15 10:11:36 AM
#39030   Interesting read: "The Number - What Do You SFSecurity 01/23/15 09:03:41 PM
#39029   Hi Gang, Is the CBOEO EX implied Volatility SFSecurity 01/23/15 03:58:36 PM
#39028   Hi Gang, Does anybody know about the SKEW/VIX SFSecurity 01/23/15 12:32:26 PM
#39027   Hi Ken, lrp42 01/22/15 12:21:04 PM
#39026   Good morning Grabber, OldAIMGuy 01/22/15 11:09:44 AM
#39025   Hi Ray, Firebird400 01/22/15 10:17:39 AM
#39024   Thank you JD, OldAIMGuy 01/19/15 11:55:27 AM
#39023   Hi Steve, Firebird400 01/19/15 11:14:24 AM
#39022   Thanks JDerb, Firebird400 01/19/15 11:09:40 AM
#39021   VWave for the Week of January 23rd JDerb 01/19/15 10:15:47 AM
#39020   UUP chart for the last three years: OldAIMGuy 01/16/15 11:03:49 AM
#39019   Energy doing some interesting things today. Could be OldAIMGuy 01/16/15 11:00:16 AM
#39018   FXF (Swiss Franc Currency ETF) popped up tremendously OldAIMGuy 01/16/15 08:13:27 AM
#39017   Hmmm...things are getting interesting! Added 10% to Alton 01/14/15 09:40:54 PM
#39016   Hi Bob neko 01/14/15 09:04:03 PM
#39015   Neko, Hi what is reverse orcroft method? BowlerBob 01/13/15 11:58:48 PM
#39014   Hi neko 01/13/15 04:15:18 PM
#39013   Hi Alton, It was certainly one of the OldAIMGuy 01/13/15 03:44:23 PM
#39012   Hi Tom, Alton 01/12/15 07:37:14 PM
#39011   Congratulations on the Grub Steve. ls7550 01/12/15 07:34:04 PM
#39010   I added 6% more shares to my ERX Toofuzzy 01/12/15 03:49:05 PM
#39009   BTW, GREAT GRUB, GRABBER! I didn't even notice OldAIMGuy 01/12/15 01:29:06 PM
#39008   Hi Alton, Re: Energy prices................... OldAIMGuy 01/12/15 01:27:43 PM
#39007   I just reread the book "Dynamic Asset Allocation" Toofuzzy 01/12/15 12:57:53 PM
#39006   Hi Steve.. JDerb 01/12/15 12:03:24 PM
#39005   Hi JonThe last two GRUBS have been missed. The Grabber 01/12/15 11:25:34 AM
#39004   VWave for the Week of January 16th JDerb 01/12/15 11:15:22 AM
#39003   I dont buy retail because tastes change. Toofuzzy 01/12/15 11:00:52 AM
#39002   Hi Tom, Alton 01/11/15 08:41:34 PM
#39001   Hi Grabber, Re: URBN................... OldAIMGuy 01/11/15 10:54:33 AM
#39000   HI Tom.URBN claims to be the largest retailer The Grabber 01/11/15 09:20:06 AM
#38999   In my opinion this newsletter from yesterday is lrp42 01/10/15 08:36:57 AM
#38998   Hi All, karw 01/10/15 04:36:23 AM
#38997   Hi Steve, URBN claims to be the largest OldAIMGuy 01/09/15 07:57:57 PM
#38996   Hi Tom.Stock ain't gone no-place!!!!! I don't think The Grabber 01/09/15 05:55:39 PM
#38995   Hi Alton, Re: Energy............... OldAIMGuy 01/09/15 02:45:53 PM
#38994   Hi jaiml, ocroft 01/09/15 01:23:50 AM
#38993   Hi Ocroft, RE: SDRL jaiml 01/08/15 06:36:23 PM
#38992   Stock ain't gone no-place!!!!! OldAIMGuy 01/08/15 03:13:25 PM
#38991   Congratulations K, OldAIMGuy 01/08/15 12:23:29 PM
#38990   Re: VNQ karw 01/08/15 12:05:55 PM
#38989   Hey Grabber, Alton 01/08/15 07:01:34 AM