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Last Post: 12/8/2016 5:26:34 PM - Followers: 266 - 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
#41442   Hi Adam, Re: CGNX Sale............. OldAIMGuy 12/08/16 05:26:33 PM
#41441   We must be having a strong bull market Adam 12/08/16 01:56:14 PM
#41440   Hi CGNX fans: my GTC sell order executed Adam 12/08/16 12:12:29 PM
#41439   Hi Allen, Firebird400 12/08/16 09:59:20 AM
#41438   Hi Firebird, ROCAR is return on capital at SFSecurity 12/08/16 05:14:01 AM
#41437   Hi Adam Toofuzzy 12/07/16 01:31:02 PM
#41436   I Toof, I find there is tendency to Adam 12/07/16 11:51:16 AM
#41435   Hi Gang, Saw something interesting that might be SFSecurity 12/06/16 04:29:15 PM
#41434   Hi Toofuzzy, What I was trying to do SFSecurity 12/06/16 03:22:42 PM
#41433   Hi Toofuzzy, Yep, I figured the comment was SFSecurity 12/06/16 02:57:14 PM
#41432   HI SF Toofuzzy 12/06/16 10:53:25 AM
#41431   HI SF Toofuzzy 12/06/16 10:43:24 AM
#41430   Hi Gang, I bought VNR at $1.62 back SFSecurity 12/06/16 12:07:41 AM
#41429   Hi Toofuzzy, Taking up standup comedy, eh? SFSecurity 12/05/16 10:57:53 PM
#41428   VWave for the week of December 9th JDerb 12/05/16 11:17:50 AM
#41427   Hi Tom, Re: update Firebird400 12/05/16 09:06:36 AM
#41426   Hi Ken, Re: Update #9........... OldAIMGuy 12/02/16 03:56:04 PM
#41425   Update #9... Firebird400 12/02/16 01:06:20 PM
#41424   HI Tom Toofuzzy 12/02/16 01:01:10 PM
#41423   Hi Toof, Re: three tax loss sales............... OldAIMGuy 12/02/16 08:12:20 AM
#41422   Well I used covered calls to dump my Toofuzzy 12/01/16 06:43:24 PM
#41421   Gonna be busy tomorrow. Toofuzzy 11/30/16 06:18:17 PM
#41420   Hi Adam, Re: Tax Loss Selling and potential OldAIMGuy 11/30/16 01:48:30 PM
#41419   Re: AIM-High Envy................... OldAIMGuy 11/30/16 12:23:31 PM
#41418   Hi Tom and others, re tax loss selling, Adam 11/30/16 11:31:45 AM
#41417   Another happy Sale this morning. They must have OldAIMGuy 11/30/16 10:53:10 AM
#41416   Hi Allen, Re: Markets - Post Thanksgiving............... OldAIMGuy 11/29/16 01:48:57 PM
#41415   Hi Toofuzzy, The real cure for Affluenza is SFSecurity 11/29/16 01:37:48 PM
#41414   Sell today, Firebird400 11/29/16 01:32:38 PM
#41413   Truly wonderful, Tom. It is the info, views, SFSecurity 11/29/16 01:20:44 PM
#41412   Hi karw Toofuzzy 11/28/16 06:05:29 PM
#41411   Hi SF Toofuzzy 11/28/16 06:02:52 PM
#41410   VWave for the week of December 2nd JDerb 11/28/16 10:12:03 AM
#41409   Hi Karl and Allen, Re: Staying power of OldAIMGuy 11/28/16 10:10:15 AM
#41408   Hi Allen, Re: Thanksgiving................. OldAIMGuy 11/28/16 08:29:25 AM
#41407   Hi Allen, karw 11/27/16 03:34:55 AM
#41406   Hi Toofuzzy, You asked a question and I SFSecurity 11/27/16 01:01:09 AM
#41405   Have a happy No Shopping Day everyone on Friday! Toofuzzy 11/22/16 04:28:25 PM
#41404   Hi Toofuzzy, Thanks for the explanations. Helps a SFSecurity 11/22/16 12:54:16 AM
#41403   Hi SF Toofuzzy 11/21/16 07:48:24 PM
#41402   Hi SF Toofuzzy 11/21/16 07:38:45 PM
#41401   Hi SF Toofuzzy 11/21/16 07:31:57 PM
#41400   VWave for the week of November 25th JDerb 11/21/16 11:09:08 AM
#41399   Hi Adam, You are absolutely correct. What I SFSecurity 11/20/16 05:12:53 PM
#41398   Thanks Toofuzzy for the explanation. Very helpful. A SFSecurity 11/20/16 04:55:24 PM
#41397   Hi Allen, I would think with AIM and Adam 11/18/16 02:32:28 PM
#41396   Hi SF Toofuzzy 11/17/16 07:12:34 PM
#41395   Hi Gang, A couple of possible ETFs SFSecurity 11/17/16 05:06:43 PM
#41394   Thanks Adam, That makes a lot of sense. SFSecurity 11/17/16 04:05:00 PM
#41393   Hi Toofuzzy, I bought SLW at $17.88 the SFSecurity 11/17/16 03:48:40 PM