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Last Post: 8/29/2016 2:14:47 AM - Followers: 265 - 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
#41218   Hi Clive Toofuzzy 08/29/16 02:14:46 AM
#41217   I suggested that long dated treasury's were a ls7550 08/29/16 12:39:01 AM
#41216   Communal Remember that I'm fond of leveraged holdings, so ls7550 08/28/16 11:28:29 PM
#41215   Hi SF Toofuzzy 08/28/16 08:43:33 PM
#41214   Hi SF Toofuzzy 08/28/16 08:35:26 PM
#41213   Hi Gang, More PC %. In lots of SFSecurity 08/28/16 02:52:33 PM
#41212   Hi Clive, You said:. . .put 40% in SFSecurity 08/28/16 02:19:07 PM
#41211   in one of your posts you reference "ETF/ETP/ETN". ls7550 08/27/16 10:10:59 AM
#41210   Hi Adam, Taking your advice I went to SFSecurity 08/27/16 02:19:30 AM
#41209   Hi Allen, my advice, for what it's worth, Adam 08/26/16 11:22:54 PM
#41208   Hi Gang, Remember I asked about the 30 SFSecurity 08/26/16 06:48:55 PM
#41207   Hi Liam and Welcome, Re: v-Wave and its OldAIMGuy 08/26/16 11:45:36 AM
#41206   Hi Gang, Followup on PC %. If you SFSecurity 08/26/16 12:06:29 AM
#41204   BTW, Is7550, in one of your posts you SFSecurity 08/25/16 08:53:29 PM
#41203   Hi Gang, Double Holy Guacamole!!! I just did SFSecurity 08/25/16 08:48:59 PM
#41201   Buy today in VNR. This on top of Adam 08/25/16 06:09:38 PM
#41200   Hi RT, Thanks for the info. I guess SFSecurity 08/25/16 05:09:31 PM
#41199   Hi RT, Being a programmer, I have most SFSecurity 08/25/16 04:51:27 PM
#41198   Liam00 Higher v wave means start with more cash. Toofuzzy 08/25/16 04:05:46 PM
#41197   Hi JDerb, please remind me, a rising VWave Liam00 08/25/16 01:40:31 PM
#41196   Hi Allen, AIM1979 08/25/16 09:26:32 AM
#41195   Hi Tom. Re :Fizz, Firebird400 08/25/16 08:24:41 AM
#41194   Hi Gang, There used to be a few SFSecurity 08/25/16 03:12:59 AM
#41193   Hi SF Toofuzzy 08/24/16 06:48:06 PM
#41192   Hi Gang, I'm in the process of closing SFSecurity 08/24/16 02:26:03 PM
#41191   Hi Toofuzzy, You are quite correct about having SFSecurity 08/24/16 02:03:13 PM
#41190   Hi Ken, Re: trades............. OldAIMGuy 08/24/16 01:41:27 PM
#41189   Buy Today, Firebird400 08/24/16 01:14:41 PM
#41188   Two sells today in small cap stock ETFs: AIM1979 08/24/16 09:23:43 AM
#41187   Two sells today in small cap stock ETFs: Adam 08/23/16 11:29:30 PM
#41186   Hi Allen, Being a programmer, I have most AIM1979 08/22/16 11:28:48 AM
#41185   VWave for the week of August 26th JDerb 08/22/16 10:30:46 AM
#41184   Hi SF Toofuzzy 08/21/16 03:14:46 AM
#41183   Hi Gang, HOORAY! Finally got a spreadsheet version SFSecurity 08/21/16 02:22:45 AM
#41182   Hi Toofuzzy, Yeah, spending time with Oriana would SFSecurity 08/21/16 02:00:50 AM
#41181   Hi SF Toofuzzy 08/21/16 12:56:27 AM
#41180   interesting charts and argues strongly for delayed AIM ls7550 08/20/16 09:33:10 PM
#41179   Hi Clive, Very interesting charts and argues strongly SFSecurity 08/20/16 07:20:03 PM
#41178   Hi Toofuzzy, Most excellent description of the process SFSecurity 08/20/16 07:07:36 PM
#41177   There's always the option to borrow cash ls7550 08/20/16 12:32:11 PM
#41176   Hi Clive Toofuzzy 08/20/16 10:48:08 AM
#41175   Hi Toofuzzy ls7550 08/20/16 10:37:36 AM
#41174   Hi Doug ls7550 08/20/16 10:24:12 AM
#41173   Hi SF Toofuzzy 08/20/16 09:24:44 AM
#41172   Hi Toofuzzy, In my paper trading and backtesting SFSecurity 08/20/16 03:43:37 AM
#41171   Hi AIM1979, If an ETF contains 30 positions SFSecurity 08/20/16 03:18:06 AM
#41170   Hi Clive, thank you for the feedback, your dougburkeaz 08/19/16 10:52:56 PM
#41169   Hi SF Toofuzzy 08/19/16 10:23:15 PM
#41168   Hi Allen, AIM1979 08/19/16 10:02:48 PM
#41167   Hi Tom, I just picked up your private dougburkeaz 08/19/16 09:40:19 PM