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Last Post: 11/28/2014 12:46:04 AM - Followers: 251 - Board type: Free - Posts Today: 1

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
#38670   And a HAPPY THANKSGIVING to you, Jon, as SFSecurity 11/28/14 12:46:04 AM
#38669   A HAPPY THANKSGIVING TO ALL AIMERS! JDerb 11/27/14 11:23:59 AM
#38668   Hi Grabber, re SNDK LD-AIM jaiml 11/27/14 10:01:36 AM
#38667   Hi Grabber, Thanks for the explanation. I had SFSecurity 11/26/14 07:23:45 PM
#38666   Hi Gang, It's amazing what you can find. SFSecurity 11/26/14 06:26:29 PM
#38665   Hi Allen. The Grabber 11/26/14 04:31:26 PM
#38664   Hi Gang, In looking for two different things; SFSecurity 11/26/14 04:09:05 PM
#38663   Hi Grabber, I'm curious about your reasoning to SFSecurity 11/26/14 02:37:23 PM
#38662   Thanks Toofuzzy. I suspected as much. SFSecurity 11/26/14 02:33:59 PM
#38661   Hi Toofuzzy, I was not talking about the SFSecurity 11/26/14 02:15:29 PM
#38660   Thanks Allen. The Grabber 11/26/14 12:31:15 PM
#38659   Falls in the category of what I call Toofuzzy 11/25/14 01:54:12 PM
#38658   That is what I said. Toofuzzy 11/25/14 01:52:14 PM
#38657   Thanks Tom! Perhaps a sticky could be placed SFSecurity 11/25/14 01:22:38 PM
#38656   Hi Allen, OldAIMGuy 11/25/14 11:36:15 AM
#38655   Hi Grabber, Congratulations on your Micron success! And SFSecurity 11/24/14 07:02:47 PM
#38654   Hi Gang, I mentioned DuckDuckGo as a SFSecurity 11/24/14 06:59:18 PM
#38653   Hi Allen The Grabber 11/24/14 06:55:14 PM
#38652   Hi Gang, Remember I was asking about alternatives SFSecurity 11/24/14 06:31:39 PM
#38651   Hi Gang, Is there any value to be SFSecurity 11/24/14 01:20:22 PM
#38650   Hi Toofuzzy, That is not what my accountant SFSecurity 11/24/14 01:15:26 PM
#38649   VWave for the Week of November 28th JDerb 11/24/14 10:40:35 AM
#38648   It wont work. Toofuzzy 11/24/14 08:14:12 AM
#38647   Hi Grabber, I was looking at your post SFSecurity 11/23/14 11:41:27 PM
#38646   Have you experienced any issues trading FVL due jdmagaw 11/23/14 08:26:51 PM
#38645   Hi Gang, I just had an odd thought. SFSecurity 11/23/14 07:44:28 PM
#38644   It depends on the fund you are selling. Toofuzzy 11/23/14 07:03:53 PM
#38643   Hi Gang, Does anyone know of a list SFSecurity 11/23/14 04:35:35 PM
#38642   Hi OldAIMGuy, Thanks for the reply. Praveen Puri SFSecurity 11/23/14 04:26:27 PM
#38641   RE : LIFO and FIFO ls7550 11/23/14 02:04:07 PM
#38640   Hi Allen, Re: Tax calculations......................... OldAIMGuy 11/23/14 10:27:32 AM
#38639   Hi Tom, Speaking of LIFO and FIFO, my SFSecurity 11/22/14 05:27:52 PM
#38638   Re: AIM, time and portfolio growth.................... OldAIMGuy 11/22/14 08:30:01 AM
#38637   Good morning Grabber, Re: Santa and his Rein OldAIMGuy 11/21/14 11:46:29 AM
#38636   Santa Claus Rally? The Grabber 11/21/14 10:49:44 AM
#38635   Re GTC buy orders. I agree with Tom AdamHelberg 11/20/14 03:50:42 PM
#38634   Thanks OldAIMGuy, It is also nice that they SFSecurity 11/20/14 02:12:52 PM
#38633   Hi Allen, Re: ETF searches.................. OldAIMGuy 11/20/14 11:33:50 AM
#38632   Hi Steve, Re: Buy Limit Orders and Falling Knives............. OldAIMGuy 11/20/14 09:33:07 AM
#38631   Hi Tom, Thanks for the list of possible SFSecurity 11/20/14 02:56:05 AM
#38630   Hi Tom, I'm not sure how to do SFSecurity 11/20/14 01:10:50 AM
#38629   Hi Gang, Stumbled on an interesting paper at SFSecurity 11/20/14 12:27:43 AM
#38628   Hi Bowler Bob and Gang, Yes, that is SFSecurity 11/19/14 11:50:24 PM
#38627   Hi all, BowlerBob 11/19/14 09:36:30 PM
#38626   Hi Tom and Gang, I do not suggest SFSecurity 11/19/14 08:06:44 PM
#38625   Hi Alton.I do same for my portfolio. For The Grabber 11/19/14 04:59:06 PM
#38624   Hi Alton, Re: Personal Advantage of AIM usage................ OldAIMGuy 11/19/14 09:28:22 AM
#38623   Hi Allen, Re: Volatility capture as a single goal.......... OldAIMGuy 11/19/14 09:22:27 AM
#38622   RE: QAC - by hand (calculator) ls7550 11/19/14 01:40:13 AM
#38621   For sequential buys I scale using percentages versus Alton 11/18/14 11:14:28 PM