Fidelity SPDR Advertisement
Home > Boards > Free Zone > A.I.M. >

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

      Hide Sticky   Hide Intro
Moderator: OldAIMGuy Assistants: extelecom, The Grabber, AIMster
Search This Board:
Last Post: 10/31/2014 3:09:39 PM - Followers: 251 - Board type: Free - Posts Today: 10

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

#37900  Sticky Note Updated v-Wave graph............................ OldAIMGuy 07/31/14 02:17:09 PM
#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
#38495   Hi Tom, re- "Ultimate Income Portfolio" Firebird400 10/31/14 03:09:38 PM
#38494   "Ultimate Income Portfolio" OldAIMGuy 10/31/14 02:38:35 PM
#38493   Anyone ever done a side by side comparison Alton 10/31/14 12:39:32 PM
#38492   Hi Grabber and Toof, Re: Precious Metals.................. OldAIMGuy 10/31/14 12:11:13 PM
#38491   Hiya Toof The Grabber 10/31/14 11:48:34 AM
#38490   Hi Tom Toofuzzy 10/31/14 09:19:07 AM
#38489   Hello Allen, lrp42 10/31/14 07:55:44 AM
#38488   Hi Allen, Re: Mutual Fund Report for potential OldAIMGuy 10/31/14 05:27:59 AM
#38487   Hi Allen, RE: descent to zero................. OldAIMGuy 10/31/14 05:24:22 AM
#38486   Hi Allen, Re: Confusion.................. OldAIMGuy 10/31/14 05:12:08 AM
#38485   Hi Gang, Here is the best explanation of SFSecurity 10/30/14 09:58:31 PM
#38484   Hi Tom, Back in the far, far distant SFSecurity 10/30/14 08:37:25 PM
#38483   Hi Gang, Poking around can be dangerous to perceptions. SFSecurity 10/30/14 08:13:11 PM
#38482   Hi Gang, This is confusing, lots of comments SFSecurity 10/30/14 05:40:34 PM
#38481   Thanks I think.your sheet is a work of The Grabber 10/30/14 04:01:11 PM
#38480   hehe. I gotta stop doing this. jaiml 10/30/14 03:29:06 PM
#38479   Hi Allen, Re: Portfolio design and AIM...................... OldAIMGuy 10/30/14 03:22:18 PM
#38478   Hi Grabber, OldAIMGuy 10/30/14 12:09:58 PM
#38477   not a lot of what to buy for The Grabber 10/30/14 11:50:41 AM
#38476   Hi Tom, In poking around just now I SFSecurity 10/30/14 02:39:56 AM
#38475   Buy ETFs Toofuzzy 10/30/14 02:21:57 AM
#38474   Hi Tom, I think may have used the SFSecurity 10/30/14 01:56:25 AM
#38473   Hi Tom, So, Grabber said we made 27%, SFSecurity 10/30/14 01:48:47 AM
#38472   Hi Grabber, I haven't found anyone who SFSecurity 10/30/14 01:24:19 AM
#38471   Thanks jamil, not what I was expecting but SFSecurity 10/30/14 12:17:24 AM
#38470   Here's the page. OldAIMGuy 10/29/14 05:21:32 PM
#38469   Hi Allen, Re: Time frame for returns.............. OldAIMGuy 10/29/14 05:18:11 PM
#38468   Tom once pointed me to this doc which The Grabber 10/29/14 03:48:50 PM
#38467   Hi also need to factor in Old The Grabber 10/29/14 03:46:46 PM
#38466   There's also a standard AIM spreadsheet ls7550 10/29/14 03:35:16 PM
#38465   Hi Toof, AdamHelberg 10/29/14 02:21:54 PM
#38464   Are you looking for Grabber's sheet? Tom once jaiml 10/29/14 02:16:14 PM
#38463   I have NEVER been burned by a fund, Toofuzzy 10/29/14 11:55:00 AM
#38462   Help! I seem to have corrupted my LD-AIM SFSecurity 10/29/14 11:42:08 AM
#38461   Hi Gang, The Return Rate is 210 / SFSecurity 10/29/14 11:25:44 AM
#38460   Personally I would not advise Aiming individual stocks. AdamHelberg 10/28/14 12:08:34 PM
#38459   A.I.M. PIC List jaiml 10/27/14 03:40:36 PM
#38458   VWave for the Week of October 31st JDerb 10/27/14 10:21:39 AM
#38457   After 16 years I must sound like a The Grabber 10/26/14 04:44:43 PM
#38456   Hi jaiml, karw 10/26/14 12:30:02 PM
#38455   Hi Steve, OldAIMGuy 10/25/14 07:12:23 PM
#38454   You're welcome Tom. The Grabber 10/25/14 06:52:25 PM
#38453   Hi jaiml.If you started in 2003, then it The Grabber 10/25/14 06:38:33 PM
#38452   Hi jaiml Toofuzzy 10/25/14 01:04:59 PM
#38451   Toof, good trade. jaiml 10/25/14 12:56:30 PM
#38450   Hi Grabber, jaiml 10/25/14 12:31:29 PM
#38449   Thanks Grabber. jaiml 10/25/14 12:13:26 PM
#38448   Re: That's not a bad return for an OldAIMGuy 10/25/14 11:20:39 AM
#38447   Hi Adam, Tom:As with the % of Transaction, The Grabber 10/24/14 06:03:28 PM
#38446   So far it looks like I should have Toofuzzy 10/24/14 03:51:54 PM