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Last Post: 6/23/2017 2:26:08 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
#42154   HI Tom Toofuzzy 06/23/17 02:26:07 AM
#42153   Hi Tom, I'm curious about your TLT chart. SFSecurity 06/23/17 01:51:18 AM
#42152   Hi Toofuzzy, CanRay 06/22/17 06:28:28 PM
#42151   Hi Toof, Re: TLT settings and trade range............ OldAIMGuy 06/22/17 03:59:15 PM
#42150   HI Tom Toofuzzy 06/22/17 03:15:50 PM
#42149   Hi Toof, Re: TLT long maturity bond ETF.................. OldAIMGuy 06/22/17 02:26:20 PM
#42148   HI Tom Toofuzzy 06/22/17 10:35:00 AM
#42147   Hi Allen, Re: "Brainwashing............." OldAIMGuy 06/22/17 09:01:28 AM
#42146   HI Allen Toofuzzy 06/21/17 09:33:49 PM
#42145   Hi Gang, A while back someone pointed out SFSecurity 06/21/17 08:12:36 PM
#42144   Sold 10% of my shares of BIB today Toofuzzy 06/21/17 04:08:50 PM
#42143   HI Allen Toofuzzy 06/21/17 09:00:51 AM
#42142   Hi Toofuzzy, What is DEC? I can't find SFSecurity 06/21/17 02:30:55 AM
#42141   HI Allen Toofuzzy 06/20/17 10:10:07 PM
#42140   Holy Guacamole!! That's a great one Toofuzzy. Wish SFSecurity 06/20/17 07:12:10 PM
#42139   HI Tom Toofuzzy 06/20/17 11:05:10 AM
#42138   Hi Toof, Re: AIM, Options and Cash Flow............... OldAIMGuy 06/20/17 09:54:27 AM
#42137   I added to my shares of ERX yesterday. Toofuzzy 06/20/17 09:53:56 AM
#42136   HI Allen Toofuzzy 06/19/17 07:08:05 PM
#42135   Hi Toofuzzy, I'm not suggesting selling options on SFSecurity 06/19/17 05:20:18 PM
#42134   VWave for the week of June 23rd JDerb 06/19/17 11:16:55 AM
#42133   Allen Don't think you can reduce cash because you Toofuzzy 06/18/17 11:16:04 PM
#42132   HI Allen Toofuzzy 06/18/17 11:06:54 PM
#42131   HI Allen Toofuzzy 06/18/17 11:03:05 PM
#42130   Hi Tom, Thanks for the pointer to the SFSecurity 06/18/17 10:39:54 PM
#42129   Hi Toofuzzy, Why is it not as lucrative SFSecurity 06/18/17 10:07:45 PM
#42128   Hi Toofuzzy, Just a quick clarification, please. SFSecurity 06/18/17 08:41:36 PM
#42127   HI Tom and all Toofuzzy 06/18/17 10:48:01 AM
#42126   Hi Allen, Re: Selling both Calls and Puts OldAIMGuy 06/18/17 08:39:01 AM
#42125   Thanks Toofuzzy for pointing out that you keep SFSecurity 06/18/17 01:58:35 AM
#42124   To add to this discussion I will say Toofuzzy 06/18/17 01:11:00 AM
#42123   HI Ray Toofuzzy 06/18/17 01:04:57 AM
#42122   Hi Ray, There are two problems here that SFSecurity 06/17/17 11:32:12 PM
#42121   Hi Allen, CanRay 06/17/17 03:33:09 PM
#42120   Hi Allen, Mvls 06/17/17 10:21:22 AM
#42119   HI Allen Toofuzzy 06/17/17 12:28:54 AM
#42118   Hi Gang, Is this a crazy idea? Don't SFSecurity 06/16/17 10:15:14 PM
#42117   It should drop a bit in the next Toofuzzy 06/14/17 05:36:39 PM
#42116   Hi Ken, Re: Sticky Oscillator.............. OldAIMGuy 06/14/17 07:12:14 AM
#42115   Hi Ken... We certainly do seem to be stuck... But JDerb 06/13/17 10:50:09 PM
#42114   Hi Jon, Oscillator Firebird400 06/13/17 08:18:00 AM
#42113   VWave for the week of June 16th JDerb 06/12/17 04:51:33 PM
#42112   Hi Toof, Firebird400 06/12/17 12:59:52 PM
#42111   I got stopped out today on STKL Toofuzzy 06/12/17 10:51:23 AM
#42110   Sell Today & +22.65%, Firebird400 06/12/17 10:03:37 AM
#42109   Hi Tom, What I've been saying to people SFSecurity 06/11/17 06:14:30 PM
#42108   Hi Allen, Re: interest errors.......... OldAIMGuy 06/11/17 12:15:14 PM
#42107   Hi Gang, Well, well, surprise, surprise. I just SFSecurity 06/09/17 03:39:27 PM
#42106   Hi Allen, CanRay 06/08/17 09:35:31 PM
#42105   Hi Ray, Do you have my e-mail address? SFSecurity 06/08/17 04:41:18 PM