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

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Last Post: 7/28/2015 11:01:45 AM - Followers: 257 - Board type: Free - Posts Today: 2

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
#39768   Burnt DVD's/CD's and tape have faster degradation than Punchcards. ls7550 07/28/15 11:01:44 AM
#39767   Which should Firebird400 07/28/15 08:29:28 AM
#39766   Took a swing Firebird400 07/27/15 06:04:30 PM
#39765   Looks like China fell out of bed!!!! -8% ls7550 07/27/15 01:20:10 PM
#39764   VWave for the week of July 31st JDerb 07/27/15 10:47:21 AM
#39763   Geeeesh!!!! Firebird400 07/27/15 09:16:56 AM
#39762   Hi ls7550 , Firebird400 07/26/15 07:11:40 PM
#39761   Hi Toof, re GSVC and SVVC jaiml 07/26/15 03:54:43 PM
#39760   Sorry FB, can't help with later Windows versions ls7550 07/26/15 08:38:22 AM
#39759   Hi Clive, Help.... Firebird400 07/26/15 07:58:19 AM
#39758   Hi jaiml Toofuzzy 07/25/15 09:21:16 PM
#39757 ls7550 07/25/15 08:36:26 PM
#39756   Hi Alton, re: COP jaiml 07/25/15 02:35:54 PM
#39755   MYWAY stock trading program... Firebird400 07/25/15 02:26:02 PM
#39754   re: BDCL jaiml 07/25/15 02:17:23 PM
#39753   Hi toof, re: miners jaiml 07/25/15 01:53:06 PM
#39752   Australia (and Canada) are somewhat commodity plays. Australia ls7550 07/24/15 06:09:41 AM
#39751   I remember reading about a stop loss method ls7550 07/24/15 05:55:45 AM
#39750   My first buy on BDCL since starting Aiming Toofuzzy 07/24/15 12:39:40 AM
#39749   Hi jaiml Toofuzzy 07/24/15 12:36:34 AM
#39748   It is related to the Canadian government wanting Toofuzzy 07/24/15 12:32:11 AM
#39747   Jaiml SCCO Of course there is also gold, silver, oil, Toofuzzy 07/24/15 12:30:28 AM
#39746   Hi Clive, stop loss and AIM jaiml 07/24/15 12:07:14 AM
#39745   Hi Clive, jaiml 07/23/15 11:50:18 PM
#39744   Hi Alton, jaiml 07/23/15 08:42:50 PM
#39743   Hey TF, Alton 07/23/15 06:05:57 PM
#39742   Hey Jaiml, Alton 07/23/15 06:03:29 PM
#39741   Commodities - 3 yrs down in a row jaiml 07/23/15 03:24:17 PM
#39740   All my AIMing is in tax sheltered accounts jaiml 07/23/15 03:19:27 PM
#39739   Hi SF Toofuzzy 07/23/15 12:57:47 PM
#39738   Hi Toofuzzy, Yes I know, that is why SFSecurity 07/23/15 04:06:19 AM
#39737   Hi SF Toofuzzy 07/22/15 11:50:12 PM
#39736   What is BRK? ls7550 07/22/15 05:59:33 PM
#39735   Hi Jamil, I'm curious about one point. At SFSecurity 07/22/15 02:31:38 PM
#39734   Hi Clive, What is BRK? I only get SFSecurity 07/22/15 02:20:25 PM
#39733   Sold out of EGY jaiml 07/21/15 06:44:38 PM
#39732   Added 43 % to my shares of SLW today. Toofuzzy 07/21/15 01:09:21 PM
#39731   The reason I like RGOLD is that they Toofuzzy 07/20/15 11:03:44 PM
#39730   Also looking at GDX....the Gold Miners. At lrp42 07/20/15 06:42:44 PM
#39729   What is your opinion on actually implementing such ls7550 07/20/15 04:52:19 PM
#39728   Thanks Tf Re: RGLD jaiml 07/20/15 02:57:26 PM
#39727   Thanks Clive jaiml 07/20/15 12:05:53 PM
#39726   VWave for the week of July 24th JDerb 07/20/15 11:19:30 AM
#39725   Aiming gold with stock as reserves will likely ls7550 07/20/15 04:12:02 AM
#39724   Aiming gold with stock as reserves will likely jaiml 07/19/15 10:53:39 PM
#39723   A US version might be comprised of something like ls7550 07/19/15 01:38:57 PM
#39722   Hitorically gold is about the price of the ls7550 07/19/15 12:55:07 PM
#39721   Thanks Tf, lrp42 07/19/15 07:40:44 AM
#39720   Hi Clive Toofuzzy 07/19/15 03:30:28 AM
#39719   You may want to look at RGLD Toofuzzy 07/19/15 03:25:51 AM