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A.I.M. Users Bulletin Board (AIMUSERS)

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Last Post: 4/20/2017 1:32:16 PM - Followers: 269 - 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
#41928   Hi Allen, Years ago I got the Adam 04/20/17 01:32:16 PM
#41927   HI Allen Toofuzzy 04/18/17 04:56:58 PM
#41926   Hi Gang, As Confucius is alleged to SFSecurity 04/18/17 03:03:04 PM
#41925   Hi Tom, Too true, altogether too true. What SFSecurity 04/18/17 02:36:39 PM
#41924   Hi Toofuzzy, Well he has been quoted as SFSecurity 04/18/17 02:26:48 PM
#41923   Hi Allen, OldAIMGuy 04/18/17 11:20:56 AM
#41922   I think he has more money than he Toofuzzy 04/18/17 09:43:54 AM
#41921   Hi Gang, Ya think Warren Buffet knows something SFSecurity 04/18/17 12:22:21 AM
#41920   VWave for the week of April 21st JDerb 04/17/17 10:48:02 AM
#41919   Hi Tom, Re: SDOG... Firebird400 04/17/17 08:27:53 AM
#41918   Hi Adam, Firebird400 04/17/17 08:25:16 AM
#41917   Hi Steve, Firebird400 04/17/17 08:23:45 AM
#41916   Hi Gang, Sometimes my curiosity gets me and SFSecurity 04/15/17 10:43:30 PM
#41915   All my Aim programs are sitting within the Adam 04/15/17 01:23:52 PM
#41914   Hey Steve.. JDerb 04/14/17 09:22:55 PM
#41913   Hi Tom, Yes, I think that a cumulative SFSecurity 04/14/17 05:38:15 PM
#41912   Hi Gang! I'm still here. The Grabber 04/14/17 12:43:17 PM
#41911   Hi Allen, Re: Pretty Pictures............ OldAIMGuy 04/14/17 08:33:25 AM
#41910   Hi Tom, Great stuff. In looking at SFSecurity 04/13/17 09:48:00 PM
#41909   Hi Allen, Re: Market Breadth Graph............. OldAIMGuy 04/13/17 06:21:32 PM
#41908   Hi Allen, Re: Market's next direction...... OldAIMGuy 04/13/17 09:47:18 AM
#41907   Hi Tom, You say:I think the markets have SFSecurity 04/12/17 08:39:37 PM
#41906   Re: AMTD stock............ OldAIMGuy 04/12/17 04:26:14 PM
#41905   Hi Allen, Re: Quiet Markets............ OldAIMGuy 04/12/17 04:09:12 PM
#41904   Hi Tom, I guess we couldn't have lunch SFSecurity 04/12/17 02:52:37 PM
#41903   Hi Tom, Firebird400 04/11/17 08:58:17 AM
#41902   Hi Toof, We were moving in a more OldAIMGuy 04/11/17 07:53:05 AM
#41901   We could have had lunch! Toofuzzy 04/11/17 07:46:12 AM
#41900   Thanks JD, OldAIMGuy 04/11/17 07:41:10 AM
#41899   VWave for the week of April 14th JDerb 04/10/17 09:55:46 AM
#41898   VWave for the week of April 7th JDerb 04/03/17 11:16:02 AM
#41897   HI Aim1979 Toofuzzy 03/31/17 02:57:16 PM
#41896   Boom Baby!!!!!!!!! Firebird400 03/28/17 10:26:26 AM
#41895   HI SFSecurity ocroft 03/27/17 08:57:33 PM
#41894   Hi Firebird400, I just ran a daily backtest SFSecurity 03/27/17 04:19:14 PM
#41893   Update... Firebird400 03/27/17 12:41:59 PM
#41892   Hi Jon, Vwave... Firebird400 03/27/17 12:38:40 PM
#41891   VWave for the week of March 31st JDerb 03/27/17 10:31:00 AM
#41890   Hi Orcroft, I was talking generically, not trends. SFSecurity 03/27/17 01:56:48 AM
#41889   Hi SFSecurity ocroft 03/26/17 10:21:46 PM
#41888   HI Allen Toofuzzy 03/24/17 03:43:43 PM
#41887   Hi Toofuzzy, Only sometimes? Ha! I suspect that SFSecurity 03/24/17 03:18:55 PM
#41886   HI Allen Toofuzzy 03/23/17 06:31:55 PM
#41885   Hi Toofuzzy, Actually the problem with my mother's SFSecurity 03/23/17 03:40:25 PM
#41884   Hi Lostcowboy, I don't do Kindle as it SFSecurity 03/23/17 03:25:08 PM
#41883   HI Allan Toofuzzy 03/23/17 08:46:48 AM
#41882   Over at amazon they have some pretty cheap lostcowboy 03/22/17 11:56:50 PM
#41881   Oh I can't stand the suspence. Toofuzzy 03/21/17 10:27:33 PM
#41880   Hi Gang, Here is one of the Gummy SFSecurity 03/21/17 10:11:34 PM
#41879   Hi Lostcowboy, and Gang; To find the single SFSecurity 03/21/17 06:10:19 PM