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

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Last Post: 5/24/2017 9:27:35 AM - Followers: 269 - Board type: Free - Posts Today: 2

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
#42069   My forecast is that the market will fluctuate macprogrammer 05/24/17 09:27:34 AM
#42068   Breaking News! OldAIMGuy 05/24/17 09:11:59 AM
#42067   Hi Gang, Beware of TDAmeritrade's web display of SFSecurity 05/22/17 08:38:26 PM
#42066   Hi Allen, I agree with you completely. In Adam 05/22/17 12:29:10 PM
#42065   Hi Adam, karw 05/22/17 10:32:04 AM
#42064   VWave for the week of May 26th JDerb 05/22/17 10:27:37 AM
#42063   Hi Adam, Perhaps once could simply multiply SFSecurity 05/21/17 11:59:29 PM
#42062   Hi Toofuzzy, Yeah, a bad cross-link in the SFSecurity 05/21/17 09:20:54 PM
#42061   Hi Karw, note that even with the present Adam 05/21/17 12:48:30 PM
#42060   HI Allen Toofuzzy 05/21/17 10:12:29 AM
#42059   Hi Allen, karw 05/21/17 04:09:11 AM
#42058   Hi Toofuzzy & Gang, Well, duh, if one SFSecurity 05/21/17 12:37:56 AM
#42057   Hi Gang, I sc#$%@d up some of the SFSecurity 05/20/17 11:56:53 PM
#42056   HI Allen Toofuzzy 05/20/17 11:14:33 PM
#42055   Hi Toofuzzy, I assume you were referring to SFSecurity 05/20/17 11:03:21 PM
#42054   HI Allen Toofuzzy 05/20/17 02:36:56 AM
#42053   Hi Gang, and Tom, Then I went back SFSecurity 05/20/17 12:08:26 AM
#42052   Hi Tom, Yes, it is true that the SFSecurity 05/19/17 11:55:35 PM
#42051   Hi Allen, Re: AIM and the Real World............. OldAIMGuy 05/19/17 09:21:26 AM
#42050   Hi Tom, My understanding is the AAII is, SFSecurity 05/19/17 01:16:30 AM
#42049   HI Tom Toofuzzy 05/18/17 10:38:36 AM
#42048   Hi Allen, Re: AAII and SPY Performance since 2003............ OldAIMGuy 05/18/17 07:47:31 AM
#42047   Hi Gang, I was reading the May 2017 SFSecurity 05/18/17 02:20:59 AM
#42046   HI Allen Toofuzzy 05/17/17 12:34:21 AM
#42045   Hi Toofuzzy, the only problem with: "Sell(ing) PUTS SFSecurity 05/16/17 04:33:31 PM
#42044   HI Allen Toofuzzy 05/15/17 10:10:52 PM
#42043   Hi Gang, Thanks for asking about NAVI , kraw, SFSecurity 05/15/17 09:38:25 PM
#42042   VWave for the week of May 19th JDerb 05/15/17 11:01:26 AM
#42041   Barron's reports that at Friday's close the 13 OldAIMGuy 05/15/17 08:17:33 AM
#42040   Hi Toof and Allen, Re: Sector Rotations................. OldAIMGuy 05/15/17 07:51:50 AM
#42039   Hi Allen, karw 05/15/17 02:54:51 AM
#42038   Hi karw, NAVI does not seem to be SFSecurity 05/15/17 12:16:29 AM
#42037   HI Tom Toofuzzy 05/14/17 12:50:35 PM
#42036   HI Tom Toofuzzy 05/14/17 12:45:30 PM
#42035   HI Allen Toofuzzy 05/14/17 12:40:25 PM
#42034   Hi Tom, Firebird400 05/13/17 09:46:24 AM
#42033   Hi Allen, Re: Portfolio Stock Fund/Income Fund makeup............ OldAIMGuy 05/13/17 08:44:38 AM
#42032   Hi Toof, Re: All investments hit a Dead OldAIMGuy 05/13/17 08:06:30 AM
#42031   Hi Allen, Re: End of Days.................. OldAIMGuy 05/13/17 07:59:45 AM
#42030   Hi Tom, I think that is a very SFSecurity 05/13/17 12:47:18 AM
#42029   HI Tom Toofuzzy 05/12/17 05:46:09 PM
#42028   Idea for alternative use of the v-Wave.................... OldAIMGuy 05/12/17 02:13:00 PM
#42027   Hi Allen, Re: Telecomm sector........ OldAIMGuy 05/12/17 01:12:03 PM
#42026   Hi Allen, Re: P/E and Relative P/E from OldAIMGuy 05/12/17 12:26:58 PM
#42025   Hi Allen, karw 05/12/17 07:20:59 AM
#42024   Hi Toofuzzy, I meant net. Last sale is SFSecurity 05/12/17 01:01:53 AM
#42023   Hi Toofuzzy, I agree, charging interest when there SFSecurity 05/12/17 12:52:55 AM
#42022   Hi Allen Toofuzzy 05/12/17 12:52:17 AM
#42021   Hi Toofuzzy, Yep, I agree, getting ~$10 for SFSecurity 05/12/17 12:47:09 AM
#42020   HI Allen Toofuzzy 05/12/17 12:44:27 AM