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

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Last Post: 4/18/2015 9:44:39 PM - Followers: 253 - Board type: Free - Posts Today: 0

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
#39364   Indeed Tom jaiml 04/18/15 09:44:39 PM
#39363   Thanks Grabber. jaiml 04/17/15 02:45:07 PM
#39362   Thanks Toof. jaiml 04/17/15 02:44:07 PM
#39361   Double thanks, Tom and gang. Most helpful as SFSecurity 04/17/15 01:29:22 PM
#39360   Thanks AIM1979! Yeah, I know it is just SFSecurity 04/17/15 01:24:31 PM
#39359   Re: BETA for ETFs................ OldAIMGuy 04/17/15 11:40:12 AM
#39358   Re: This is my first year using AIM. OldAIMGuy 04/17/15 11:14:11 AM
#39357   In my daily life when I talk to ls7550 04/17/15 10:00:33 AM
#39356   Hi Allen Toofuzzy 04/17/15 09:41:12 AM
#39355   Hi Allen Toofuzzy 04/17/15 09:31:54 AM
#39354   jaiml Glad you are having good luck with AIM. Toofuzzy 04/17/15 09:20:15 AM
#39353   Does anyone know how to calculate a beta AIM1979 04/17/15 09:06:12 AM
#39352   Hey J. The Grabber 04/17/15 08:53:30 AM
#39351   Congratulations on the sale. Toofuzzy 04/17/15 08:51:00 AM
#39350   Thanks Alton and fingers crossed on your 'pending' sells. The Grabber 04/17/15 08:40:06 AM
#39349   Hey Allen, Alton 04/17/15 06:49:19 AM
#39348   Hi Alton, Given the figures you posted, you SFSecurity 04/17/15 12:34:13 AM
#39347   Hi Toofuzzy, I've noticed that you don't always SFSecurity 04/17/15 12:15:18 AM
#39346   Hi Tom, Thanks for the tip. I SFSecurity 04/17/15 12:13:14 AM
#39345   Hey Jaiml, Alton 04/16/15 09:44:04 PM
#39344   I have RGR as well Alton jaiml 04/16/15 08:24:24 PM
#39343   Been busy selling as well jaiml 04/16/15 08:07:38 PM
#39342   Grabber, Good work! I started an Aim program Alton 04/16/15 08:06:14 PM
#39341   Well it took another day but... The Grabber 04/16/15 06:47:42 PM
#39340   Thanks Grabber for the Android primer :-) Conrad 04/16/15 06:21:19 PM
#39339   Hi SF Toofuzzy 04/16/15 10:33:09 AM
#39338   Hi Allen, Re: Dividends................ OldAIMGuy 04/16/15 09:51:26 AM
#39337   Ahh. You need a primer on Android. The Grabber 04/15/15 11:30:13 PM
#39336   Hi Gang, I too had a sale, DBC. SFSecurity 04/15/15 11:09:55 PM
#39335   Hi Grabber, Conrad 04/15/15 10:23:12 PM
#39334   Conrad You must be an "Android Virgin" :-) The Grabber 04/15/15 06:46:44 PM
#39333   Grabber. . .Thanks for the trouble. Conrad 04/15/15 06:38:03 PM
#39332   No Problem Conrad. The Grabber 04/15/15 05:28:50 PM
#39331   Congrats Toof! The Grabber 04/15/15 05:00:30 PM
#39330   Congratulations Toof, Re: Selling into Strength.............. OldAIMGuy 04/15/15 03:35:49 PM
#39329   Hi Toof, thanks for the heads up on AdamHelberg 04/15/15 03:25:36 PM
#39328   Sold shares of KRE after a long wait today. Toofuzzy 04/15/15 02:12:33 PM
#39327   Re: QQQ and Concentration by Capitalization....................... OldAIMGuy 04/15/15 12:19:32 PM
#39326   Thanks Grabber! Conrad 04/13/15 07:45:57 PM
#39325   Conrad. Answered on my first response below. The Grabber 04/13/15 04:34:02 PM
#39324   I have not yet found a Follow-up Discussion The Grabber 04/13/15 04:33:08 PM
#39323   Hi Conrad and welcome back. The Grabber 04/13/15 04:31:36 PM
#39322   Re: V wave Toofuzzy 04/13/15 12:18:35 PM
#39321   VWave for the week of April 17th JDerb 04/13/15 10:39:23 AM
#39320   Hi Gang, The current out of favor sector SFSecurity 04/12/15 09:38:57 PM
#39319   Hi Gang, Totally off the wall response to SFSecurity 04/12/15 06:07:43 PM
#39318   Hi Gang, SFSecurity 04/12/15 06:03:13 PM
#39317   Hi Grabber, Conrad 04/12/15 07:23:09 AM
#39316   I found this message on "The Money Machine" Conrad 04/12/15 06:15:16 AM
#39315   I just noticed that the Android App "The Conrad 04/12/15 05:52:35 AM