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Last Post: 7/29/2014 5:51:58 PM - Followers: 250 - 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: http://www.aim-users.com/index.html AIM Weekly Newsletter (free): http://www.aim-users.com/3bbs.htm AIM Stock Examples: http://www.aim-users.com/pic.htm

AIM "Cash Burn" Chart

http://www.aim-users.com/cashburn.htm AIM Exchange Traded Funds (ETFs) Board http://www.investorshub.com/boards/board.asp?board_id=1292 Tom's Retirement Account with ETFs http://www.aim-users.com/etfunds.htm Software for AIM accounts: http://www.aim-users.com/aimware.htm 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: http://www.investorshub.com/boards/board.asp?board_id=992 and http://www.aim-users.com/qanda.htm 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: http://www.investorshub.com/boards/board.asp?board_id=1010 Newsletter Archives - http://www.aim-users.com/archive.htm 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
#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 www.aim-users.com This is a copy of www.aim-users.com 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
#37897   Hi Steve, Re: vealies during 2012 and recently......... OldAIMGuy 07/29/14 05:51:58 PM
#37896   Performance looks good Tom! The Grabber 07/29/14 04:52:05 PM
#37895   Hi Adam, Re: CGNX history................... OldAIMGuy 07/29/14 03:29:15 PM
#37894   U.S. Telecomm strength continuing................... OldAIMGuy 07/29/14 03:27:16 PM
#37893   Sale today in CGNX. While I don't advocate AdamHelberg 07/29/14 01:55:19 PM
#37892   Hi Karw, one thing to notice about Twinvest AdamHelberg 07/29/14 01:10:27 PM
#37891   Hi Allen, Re: Fractional Shares............. OldAIMGuy 07/29/14 12:46:41 PM
#37890   Hi SF Toofuzzy 07/29/14 12:08:32 PM
#37889   Hi SFsecurity, karw 07/29/14 01:07:40 AM
#37888   A general question... SFSecurity 07/28/14 10:05:04 PM
#37887   Hi Karw, SFSecurity 07/28/14 07:46:44 PM
#37886   Hi SFsecurity, karw 07/28/14 05:05:47 PM
#37885   RE: Back to the market feeling 'Toppy'... SFSecurity 07/28/14 04:46:50 PM
#37884   Hi karw, SFSecurity 07/28/14 04:00:34 PM
#37883   Hi Tom.. JDerb 07/28/14 11:42:37 AM
#37882   Hi JD, Doesn't it get boring when the OldAIMGuy 07/28/14 11:29:14 AM
#37881   VWave for the Week of August 1st JDerb 07/28/14 11:18:06 AM
#37880   Hi Grabber Toofuzzy 07/26/14 01:35:22 AM
#37879   Hi Adam, karw 07/25/14 04:49:28 PM
#37878   Hi Karw, I also AIM VNQ in tax AdamHelberg 07/25/14 01:55:41 PM
#37877   Thanks Steve, Re: Cash and Fetal Positions............... OldAIMGuy 07/25/14 01:11:11 PM
#37876   Back to the market feeling 'Toppy'... The Grabber 07/25/14 12:27:25 PM
#37875   Also dividends were collected each quarter. OldAIMGuy 07/24/14 02:07:33 PM
#37874   VNQ sell in my UBA karw 07/24/14 01:14:57 PM
#37873   Hi Allen, Re: Price to use in building examples............. OldAIMGuy 07/23/14 11:19:00 AM
#37872   Hi OldAIMGuy, SFSecurity 07/22/14 05:02:29 PM
#37871   Thanks a WHOLE bunch. Just the ticket to SFSecurity 07/22/14 04:13:32 PM
#37870   Hi Allen, Re: samples to test/educate in AIM OldAIMGuy 07/22/14 11:47:44 AM
#37869   When I asked... SFSecurity 07/22/14 02:10:33 AM
#37868   Is the $100 a year for the added SFSecurity 07/22/14 01:40:39 AM
#37867   For testing with paper trades... SFSecurity 07/22/14 01:33:21 AM
#37866   I strongly concur with Toof that you should AdamHelberg 07/21/14 01:38:23 PM
#37865   Thanks JD, Here's the v-Wave in graphic form................. OldAIMGuy 07/21/14 11:51:59 AM
#37864   VWave for the Week of July 25th JDerb 07/21/14 10:17:00 AM
#37863   Hi sf Toofuzzy 07/20/14 01:29:03 AM
#37862   Hi SF Toofuzzy 07/20/14 01:21:54 AM
#37861   Hi Steve, lrp42 07/19/14 07:45:19 AM
#37860   Hi Allen.. JDerb 07/18/14 09:12:50 PM
#37859   Great suggestion and method! SFSecurity 07/18/14 07:31:12 PM
#37858   vWave calculation... SFSecurity 07/18/14 07:20:47 PM
#37857   Hi SF Security ocroft 07/18/14 06:58:04 PM
#37856   Thanks Toofuzzy. Lots of help. Now how does SFSecurity 07/18/14 06:27:24 PM
#37855   Hi Clive The Grabber 07/18/14 05:32:55 PM
#37854   Hi Clive Toofuzzy 07/18/14 03:19:08 PM
#37853   Yes we MAY be near a short term ls7550 07/18/14 02:35:56 PM
#37852   Hi SF Toofuzzy 07/17/14 10:22:38 PM
#37851   Hi Gang, SFSecurity 07/17/14 08:58:51 PM
#37850   Oh I suppose so. The Grabber 07/17/14 06:22:41 PM
#37849   Hi K, OldAIMGuy 07/17/14 01:09:03 PM
#37848   Hi Tom, karw 07/17/14 10:59:37 AM