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Last Post: 9/30/2014 3:48:11 PM - Followers: 251 - Board type: Free - Posts Today: 12

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
#38297   Thanks Clive. I just wanted to double-check. jaiml 09/30/14 03:48:11 PM
#38296   Hi Tom Toofuzzy 09/30/14 03:01:20 PM
#38295   Hi Tom , AWF... Firebird400 09/30/14 12:42:54 PM
#38294   Good Morning, Allen... JDerb 09/30/14 11:50:45 AM
#38293   Hi Clive.. JDerb 09/30/14 11:42:00 AM
#38292   Good morning Toof, Re: buying long dated bond OldAIMGuy 09/30/14 09:21:05 AM
#38291   Hi Allen, Re: v-Wave dates............................ OldAIMGuy 09/30/14 08:26:19 AM
#38290   Hi Jaiml ls7550 09/30/14 04:34:54 AM
#38289   Hi Allen Toofuzzy 09/30/14 01:28:15 AM
#38288   Hi jaiml Toofuzzy 09/30/14 01:19:40 AM
#38287   Hopefully you set aside 50% cash to take Toofuzzy 09/30/14 01:08:34 AM
#38286   I'm a bit confused about the change in SFSecurity 09/30/14 12:32:27 AM
#38285   Allen, I think you misunderstand Ocroft's method. This BowlerBob 09/29/14 11:20:03 PM
#38284   Hi jaiml, Welcome to the newbies, like me, SFSecurity 09/29/14 09:31:15 PM
#38283   Hi Toofuzzy, SFSecurity 09/29/14 09:06:21 PM
#38282   Delayed AIM on the Russel: jaiml 09/29/14 08:07:58 PM
#38281   clive, just to clarify, this calculation assumes the safe jaiml 09/29/14 07:40:04 PM
#38280   Hey, you're flipping currencies! Next buy price SFSecurity 09/29/14 07:29:05 PM
#38279   Thoughts on Ocroft's delayed buying mechanism: jaiml 09/29/14 07:08:02 PM
#38278   I have a hot tip for you! Are ls7550 09/29/14 03:56:24 PM
#38277   Dont lose your shirt! ls7550 09/29/14 03:52:10 PM
#38276   Dont lose your shirt! Toofuzzy 09/29/14 02:56:48 PM
#38275   Hi Allen Toofuzzy 09/29/14 02:52:41 PM
#38274   Next buy price ls7550 09/29/14 12:32:48 PM
#38273   I hope everyone remembers not to buy a ls7550 09/29/14 12:17:49 PM
#38272   Hi JD, Re: v-Wave.................... OldAIMGuy 09/29/14 11:25:45 AM
#38271   VWave for the Week of October 3rd ls7550 09/29/14 10:15:37 AM
#38270   VWave for the Week of October 3rd JDerb 09/29/14 09:29:21 AM
#38269   Hi Allen, karw 09/29/14 06:49:25 AM
#38268   Hi Toofuzzy, SFSecurity 09/29/14 02:28:56 AM
#38267   "Money doesn't come with a set of instructions SFSecurity 09/29/14 01:42:40 AM
#38266   Hi K, SFSecurity 09/29/14 01:34:18 AM
#38265   Hi K, Bowing to the Painter from Berlin OldAIMGuy 09/28/14 08:43:27 AM
#38264   Hi Clive, Re: Leveraged funds vs occasional margin buying.............. OldAIMGuy 09/28/14 08:39:04 AM
#38263   Hi Allen, Re: Tome on preparing or senility....... OldAIMGuy 09/28/14 08:28:03 AM
#38262   Re : Leveraged/non leveraged rotations ls7550 09/28/14 06:59:05 AM
#38261   Hi Allan, karw 09/28/14 03:06:46 AM
#38260   Hi Allan, karw 09/28/14 02:34:13 AM
#38259   Hi Allen Toofuzzy 09/28/14 12:12:11 AM
#38258   Hi Allen Toofuzzy 09/27/14 11:57:21 PM
#38257   If one had the desire, when AIM was ls7550 09/27/14 09:36:40 PM
#38256   Hi Tom, you may be beaten by me SFSecurity 09/27/14 09:05:25 PM
#38255   I agree that AIM is a great management ls7550 09/27/14 09:04:26 PM
#38254   Hi Allen, Re: Situations....................... OldAIMGuy 09/27/14 06:32:43 PM
#38253   RE: Hi Allen, Re: just accumulate the SFSecurity 09/27/14 03:48:44 PM
#38252   Hi Tom, SFSecurity 09/27/14 03:45:57 PM
#38251   Hi K, Re: weekly review.................... OldAIMGuy 09/27/14 10:00:47 AM
#38250   Hi Allen, Re: just accumulate the number OldAIMGuy 09/27/14 09:55:36 AM
#38249   Hi Allen, Re: Market, Economic and Interest Rate Cycles............... OldAIMGuy 09/27/14 09:51:59 AM
#38248   Hi All, karw 09/27/14 05:43:50 AM