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Last Post: 1/16/2017 11:41:04 AM - Followers: 267 - Board type: Free - Posts Today: 3

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
#41606   VWave for the week of January 20th JDerb 01/16/17 11:41:04 AM
#41605   First Edition... 1977 Firebird400 01/16/17 10:52:44 AM
#41604   Hi Adam, Re: Twinvest.............. OldAIMGuy 01/16/17 10:07:49 AM
#41603   Thanks for posting! Roninpilot 01/15/17 06:02:40 PM
#41602   On Twinvest, some time ago I looked at Adam 01/14/17 08:52:45 PM
#41601   HI Allen Toofuzzy 01/14/17 01:58:36 AM
#41600   Hi Toofuzzy, Thanks for the compliment but I SFSecurity 01/14/17 01:41:14 AM
#41599   Hi Thank you for your reply ls7550. My computer neko 01/13/17 10:07:58 PM
#41598   Okay Gang, I told ya'll that I had SFSecurity 01/13/17 05:26:28 PM
#41597   I was looking at the wrong thing, post Toofuzzy 01/13/17 02:03:43 PM
#41596   Hi Toofuzzy, Post #760 in SIG does not SFSecurity 01/13/17 12:06:49 PM
#41595   If you Google SYCHROVEST an article by Toofuzzy 01/13/17 10:20:12 AM
#41593   Check out the systematic investing group post 759 Toofuzzy 01/13/17 10:06:58 AM
#41592   Hi Allen, Thanks for the tip on the AIM1979 01/13/17 08:50:32 AM
#41591   Hi Ray, I suddenly recall that, I believe, SFSecurity 01/13/17 01:40:53 AM
#41590   Hi Ray, I seem to recall reading an SFSecurity 01/13/17 01:11:38 AM
#41589   Hi Gang, Generally it is cheaper to get SFSecurity 01/13/17 12:56:15 AM
#41588   Hi Tom, Re: Synchrovest Firebird400 01/12/17 03:26:42 PM
#41587   Good to see you back Clive. Happy new year! jaiml 01/12/17 01:33:07 PM
#41586   Hi Ray, Re: Synchrovest............... OldAIMGuy 01/12/17 11:07:48 AM
#41585   Hi Ray, Firebird400 01/12/17 09:54:52 AM
#41584   Hi Ray, LC has a post on the AIM1979 01/12/17 09:33:18 AM
#41583   I second that. And a Happy New Year JDerb 01/11/17 09:50:24 PM
#41582   Synchrovest? I've been reading through the SIG board and CanRay 01/11/17 05:56:42 PM
#41581   Thanks Clive, Good to see your smiling electrons OldAIMGuy 01/11/17 10:50:45 AM
#41580   HI Clive Toofuzzy 01/11/17 12:47:14 AM
#41579   Belated best wishes to all for the New Year. ls7550 01/10/17 10:03:19 PM
#41578   Hi Neko ls7550 01/10/17 09:56:48 PM
#41577   Hi Lou, Re: LD-AIM............... OldAIMGuy 01/10/17 08:23:41 AM
#41576   I'll check with Bob on accessibility to the AIM1979 01/09/17 10:55:24 PM
#41575   HI lou Toofuzzy 01/09/17 06:52:20 PM
#41574   Tom, thanks for explaining LD AIM. Interesting. lbdina 01/09/17 05:54:58 PM
#41573   Hi Ibdina, (Lou?) Re: LD-AIM........... OldAIMGuy 01/09/17 02:25:29 PM
#41572   Hi A1979, Re: Newport, etc............. OldAIMGuy 01/09/17 02:17:13 PM
#41570   Hi neko 01/09/17 01:57:59 PM
#41569   What is LD-AIM? lbdina 01/09/17 11:20:26 AM
#41568   VWave for the week of January 13th JDerb 01/09/17 10:52:15 AM
#41567   an open source Aim program could be developed AIM1979 01/09/17 09:12:07 AM
#41566   HI Tom Toofuzzy 01/08/17 11:42:21 AM
#41565   Hi Toof, Re: SLW................ OldAIMGuy 01/08/17 08:53:23 AM
#41564   Thanks Adam, Re: "Do Not Reduce" order instructions............ OldAIMGuy 01/08/17 08:50:59 AM
#41563   Hi Allen, karw 01/08/17 04:53:42 AM
#41562   Hi Toofuzzy, CanRay 01/07/17 08:15:01 PM
#41561   HI Allen Toofuzzy 01/07/17 07:43:29 PM
#41560   HI Allen Toofuzzy 01/07/17 07:41:25 PM
#41559   HI Allen Toofuzzy 01/07/17 07:35:21 PM
#41558   Hi Gang, WOW! The Dividend Channel I mentioned SFSecurity 01/07/17 07:32:01 PM
#41557   Can ray Toofuzzy 01/07/17 07:21:38 PM
#41556   Hi Gang, While I was helping a friend SFSecurity 01/07/17 06:48:22 PM
#41555   Hi Toofuzzy, Thanks for the further explanation of SFSecurity 01/07/17 06:21:18 PM