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

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Last Post: 5/29/2016 7:18:15 AM - Followers: 263 - 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
#40710   A key feature of AIM in addition to ls7550 05/29/16 07:18:15 AM
#40709   Hi Tom & Toofuzzy, Thanks for the explanation. SFSecurity 05/26/16 01:51:25 PM
#40708   Hi Allen, Re: AIM and TIME.......... OldAIMGuy 05/25/16 11:37:14 AM
#40707   Hi Allen, Re: ZigZag and AIM's Hold Zone........... OldAIMGuy 05/25/16 11:23:13 AM
#40706   Hi Sf Toofuzzy 05/24/16 02:38:10 PM
#40705   Hi Tom, I agree about AIM taking time, SFSecurity 05/24/16 02:26:33 PM
#40704   Thanks Tom. One question, how do you connect SFSecurity 05/24/16 02:17:38 PM
#40703   Hi Ray.. JDerb 05/24/16 01:03:37 PM
#40702   Hi Ray, Re: AIM and investment management vs "timing".......... OldAIMGuy 05/24/16 10:04:47 AM
#40701   OldAimGuy and Ocroft. CanRay 05/23/16 10:02:46 PM
#40700   VWave for the week of May 27th JDerb 05/23/16 10:18:31 AM
#40699   Hi Allen, Re: StockCharts graph................. OldAIMGuy 05/21/16 09:40:57 AM
#40698   Hi Tom, Bizarre, bizarre, When I first looked SFSecurity 05/20/16 11:49:09 PM
#40697   Hi Can Ray ocroft 05/20/16 08:27:42 PM
#40696   Hi Ray, Re: MACD and Charts................. OldAIMGuy 05/20/16 02:13:22 PM
#40695   Hi Clive, (Orcroft as well), Sorry about the SFSecurity 05/20/16 02:53:27 AM
#40694   Hi Allen CanRay 05/19/16 08:50:32 PM
#40693   Thanks Ocroft CanRay 05/19/16 08:21:48 PM
#40692   As I recall it is to wait to ls7550 05/19/16 07:54:18 PM
#40691   Hi Gang, As I was creating the spreadsheet SFSecurity 05/19/16 01:03:29 AM
#40690   Hi CanRay, Considering the market over the last SFSecurity 05/19/16 12:57:04 AM
#40689   Hi Cay Ray ocroft 05/18/16 10:56:32 PM
#40688   Hi Adam CanRay 05/18/16 06:47:14 PM
#40687   Hi Toofuzzy CanRay 05/18/16 06:40:02 PM
#40686   Hi Ray, You must have bought it at Adam 05/18/16 01:01:16 PM
#40685   So did you buy more after it dropped Toofuzzy 05/17/16 11:54:44 PM
#40684   Hi Adam CanRay 05/17/16 10:04:44 PM
#40683   Hi Can, It's unusual for an index fund Adam 05/17/16 01:03:10 PM
#40682   Good AIM, bad shot. CanRay 05/16/16 02:28:56 PM
#40681   VWave for the week of May 20th JDerb 05/16/16 10:25:01 AM
#40680   Added shares of BIB and URTY today.sold out Toofuzzy 05/13/16 02:59:44 PM
#40679   Hi Gang, About 20 days ago I got SFSecurity 05/12/16 12:46:24 AM
#40678   Hi Is7550, I was playing with your first SFSecurity 05/11/16 05:13:46 PM
#40677   Hi Tom, Yes Buys not Sells, thanks for Adam 05/10/16 03:29:18 PM
#40676   Hi Adam, Re: 80/20 AIM portfolio..... OldAIMGuy 05/10/16 02:14:27 PM
#40675   50/50 stock/bonds is a common withdrawal phase blend. ls7550 05/10/16 01:47:33 PM
#40674   Added 20% more shares to my STKL holdings Toofuzzy 05/10/16 01:29:32 PM
#40673   If you hold "unnecessary" cash that you never ls7550 05/10/16 01:14:48 PM
#40672   Hi Tom, With a 20% cash you would Adam 05/10/16 12:36:10 PM
#40671   Hi Adam, Re: Enhanced Funds and AIM........... OldAIMGuy 05/10/16 10:19:33 AM
#40670   Thanks Clive, OldAIMGuy 05/10/16 09:50:50 AM
#40669   Thanks JD, Re: Market Risk and the v-Wave............. OldAIMGuy 05/10/16 09:42:41 AM
#40668   Hi Adam Toofuzzy 05/10/16 02:52:00 AM
#40667   Thanks Clive Toofuzzy 05/10/16 02:48:39 AM
#40666   The bullish 2* and 3* ETFs are interesting Adam 05/09/16 07:46:43 PM
#40665   in the later edition when Lichello suggested 80% ls7550 05/09/16 03:22:33 PM
#40664   In the later edition when Lichello suggested 80% Toofuzzy 05/09/16 02:10:33 PM
#40663   Added 15% more shares of ERX AT $25.7 Toofuzzy 05/09/16 01:48:06 PM
#40662   Sold one Nov $65 put on URTY and Toofuzzy 05/09/16 01:00:24 PM
#40661   VWave for the week of May 13th JDerb 05/09/16 10:22:46 AM