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Last Post: 4/21/2014 2:14:41 AM - Followers: 247 - 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

#37554  Sticky Note Hi G and J, Here's the latest v-Wave graph: OldAIMGuy 02/11/14 05:13:38 PM
#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
#35313  Sticky Note Here's the latest v-Wave Graphic through last week: OldAIMGuy 03/19/12 06:10:05 PM
#30219  Sticky Note Hi Glen, RE: Calculating the v-Wave................... OldAIMGuy 05/26/09 11:32:16 AM
#37674   I just read an interesting article in the Toofuzzy 04/21/14 02:14:41 AM
#37673   Thanks JD, OldAIMGuy 04/14/14 05:54:37 PM
#37672   VWave for the Week of April 18th JDerb 04/14/14 10:38:34 AM
#37671   Hi Tom, Firebird400 04/11/14 12:33:21 PM
#37670   Hi Ken, OldAIMGuy 04/11/14 10:33:12 AM
#37669   Hi Tom re: Biotech, Firebird400 04/10/14 04:18:27 PM
#37668   Crazy week so far.. Firebird400 04/10/14 03:20:51 PM
#37667   Buy the rumor Firebird400 04/09/14 03:17:59 PM
#37666   Hi OldAIMGuy, Firebird400 04/09/14 08:48:12 AM
#37665   Hi F400, Is that a License to Steal??????? OldAIMGuy 04/09/14 06:20:37 AM
#37664   2X 1-50 Firebird400 04/08/14 03:12:19 PM
#37663   Hi CTP and Welcome, OldAIMGuy 04/08/14 12:52:57 PM
#37662   Has anyone on this board ever tried to CoolTraderPro 04/07/14 01:26:07 PM
#37661   Thanks JD, OldAIMGuy 04/07/14 12:43:28 PM
#37660   VWave for the Week of April 11th JDerb 04/07/14 11:03:00 AM
#37659   Hi K, Firebird400 04/05/14 03:57:54 PM
#37658   Hi Firebird400, karw 04/05/14 05:30:45 AM
#37657   After yesterday's sell Firebird400 04/02/14 10:46:52 AM
#37656   Shipping was busy Firebird400 04/01/14 04:28:12 PM
#37655   March results, Firebird400 04/01/14 02:24:40 PM
#37654   VWave for the Week of April 4th JDerb 03/31/14 12:00:36 PM
#37653   Next book, Firebird400 03/30/14 10:08:36 AM
#37652   Hi again FO... The Grabber 03/27/14 02:48:15 PM
#37651   Actually, there is something else I forgot to TheFrugalOne 03/26/14 07:14:07 PM
#37650   Many years ago I had both a first lostcowboy 03/26/14 02:23:49 PM
#37648   Hi Clive, Firebird400 03/26/14 09:16:29 AM
#37647   That video does look comprehensive, too bad I ls7550 03/25/14 09:16:35 PM
#37646   Book was listed as 1977, First edition, First ls7550 03/25/14 09:03:23 PM
#37645   Yup! As it happened, I watched the infomercial one The Grabber 03/25/14 04:24:12 PM
#37644   scour the internet. The Grabber 03/25/14 04:15:00 PM
#37643   Hi Ken, I never knew any of the OldAIMGuy 03/25/14 03:57:48 PM
#37642   Hi Tom, Re: Infomercial Firebird400 03/25/14 03:37:38 PM
#37641   Hi Steve, re- infomercial, Firebird400 03/25/14 02:42:10 PM
#37640   Hi Clive, Firebird400 03/25/14 02:39:57 PM
#37639   Infomercial his infomercials in the '80s when he was The Grabber 03/25/14 12:47:00 PM
#37638   Hi Ken, OldAIMGuy 03/25/14 10:32:39 AM
#37637   The book? Firebird400 03/25/14 09:15:00 AM
#37636   33 views Firebird400 03/25/14 09:12:43 AM
#37634   Hi MW2K, Re: Zig Zag lines on Stockcharts graphs................. OldAIMGuy 03/25/14 08:41:46 AM
#37633   Bought HBAN yesterday Firebird400 03/25/14 07:37:43 AM
#37632   Hi, Tom Moonwalker2000 03/25/14 05:19:58 AM
#37631   Hi Clive, Firebird400 03/24/14 07:14:37 PM
#37630   Re: $400? Firebird400 03/24/14 07:08:28 PM
#37629   If anyone asks me to explain AIM and ls7550 03/24/14 06:48:09 PM
#37628   Such at TEASE!!! I've not heard Mr. L's OldAIMGuy 03/24/14 04:51:43 PM
#37627   AIM for a Million, Firebird400 03/24/14 11:33:26 AM
#37626   VWave for the Week of March 28th JDerb 03/24/14 11:25:41 AM
#37625   You're welcome. The Grabber 03/23/14 09:08:49 PM
#37624   Thank you for your reply. Cleared up a TheFrugalOne 03/23/14 03:20:47 PM
#37623   I need to slap myself every time I Toofuzzy 03/21/14 04:02:49 PM