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Last Post: 9/27/2016 4:14:23 PM - 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
#41314   Hi Tom, Thanks for the explanation of how SFSecurity 09/27/16 04:14:22 PM
#41313   Whoops! I must have been more tired than SFSecurity 09/27/16 03:40:42 PM
#41312   Happy Birthday Tom. The more you have Mvls 09/26/16 11:25:50 AM
#41311   VWave for the week of September 30th JDerb 09/26/16 10:51:54 AM
#41310   "Dear Jon" (so to speak), OldAIMGuy 09/26/16 07:57:11 AM
#41309   Hi Allen, Re: Calculating the Next Buy and OldAIMGuy 09/26/16 07:43:49 AM
#41308   Happy Birthday, Tom. Wish you many more. SFSecurity 09/25/16 05:14:34 PM
#41307   HAPPY BIRTHDAY, Tom! JDerb 09/25/16 10:12:10 AM
#41306   Hi Tom, I agree that keeping the commissions SFSecurity 09/24/16 07:56:50 PM
#41305   Hi Allen, Re: Calculating the Next Buy/Sell prices............. OldAIMGuy 09/24/16 08:42:12 AM
#41304   Hi Gang, In checking my spreadsheet version of SFSecurity 09/24/16 12:53:03 AM
#41303   Sold 5% of my shares of BIB today Toofuzzy 09/23/16 04:50:29 PM
#41302   Thanks DB, I only took a quick look OldAIMGuy 09/21/16 09:54:20 AM
#41301   Hi Tom, Please check your personal email, dougburkeaz 09/20/16 12:42:35 PM
#41300   Sell today on LEE, Firebird400 09/19/16 01:58:15 PM
#41299   HI Tom Toofuzzy 09/19/16 12:33:06 PM
#41298   VWave for the week of September 23rd JDerb 09/19/16 10:54:59 AM
#41297   Hi Toof, Re: Even if an industry OldAIMGuy 09/19/16 08:18:02 AM
#41296   Hi SF Toofuzzy 09/18/16 02:39:47 PM
#41295   Hi Liam Toofuzzy 09/18/16 02:25:01 PM
#41294   Hi SF Toofuzzy 09/18/16 02:00:15 PM
#41293   Hi Toofuzzy, The reason for going to the SFSecurity 09/17/16 05:31:09 PM
#41292   HI SF Toofuzzy 09/16/16 11:13:20 PM
#41291   Okay, Gang, We've talked about the Altman Z-Score SFSecurity 09/16/16 09:28:46 PM
#41290   Hi Toofuzzy, Tell me about it! I always SFSecurity 09/16/16 08:37:37 PM
#41289   Toofuzzy, thanks for your patient and understanding reply! Liam00 09/15/16 04:43:30 PM
#41288   Hi Liam00 Toofuzzy 09/15/16 04:18:13 PM
#41287   Hi Jon and Welcome, Re: Reducing exposure in OldAIMGuy 09/15/16 01:55:00 PM
#41286   Hi TooFuzzy, I am thinking about opening a Liam00 09/15/16 10:25:37 AM
#41285   HI Jong Toofuzzy 09/15/16 09:39:38 AM
#41284   Hi Jaiml and Allen, JonG 09/15/16 03:10:57 AM
#41283   HI SF Toofuzzy 09/14/16 11:15:46 PM
#41282   Hi Toofuzzy, No, I wasn't busting your chops, SFSecurity 09/14/16 09:41:45 PM
#41281   Hi JonG, I ran a quick test for SFSecurity 09/14/16 09:36:03 PM
#41280   HI SF Toofuzzy 09/14/16 12:33:01 PM
#41279   Hi JonG, jaiml 09/14/16 09:55:21 AM
#41278   Hi AIM Users, JonG 09/14/16 01:16:26 AM
#41277   Hi Toofuzzy, chancestors Huh? What's that? SFSecurity 09/14/16 12:09:43 AM
#41276   HI SF Toofuzzy 09/13/16 09:16:20 PM
#41275   Hi Gang, As of last Friday the 47 SFSecurity 09/13/16 05:51:18 PM
#41274   VWave for the week of September 16th JDerb 09/11/16 02:44:40 PM
#41273   Hi Allen, Re: Calculating the Next Buy/Sell prices OldAIMGuy 09/11/16 09:29:59 AM
#41272   Hi Gang, now on a completely different subject. SFSecurity 09/11/16 12:41:02 AM
#41271   Hi Tom, First of all when I upgraded SFSecurity 09/11/16 12:22:35 AM
#41270   Hi Ray, SFSecurity 09/08/16 08:12:21 PM
#41269   Thanks RT. Don't know why I couldn't see SFSecurity 09/08/16 07:56:46 PM
#41268   HI SF Toofuzzy 09/08/16 10:51:49 AM
#41267   Hi Allen, CanRay 09/08/16 06:13:47 AM
#41266   Hi Toofuzzy, Actually that won't get you what SFSecurity 09/08/16 01:07:48 AM
#41265   Hi Allen, Try here AIM1979 09/07/16 11:54:17 PM