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Last Post: 2/17/2018 7:40:54 PM - Followers: 271 - 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

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#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
#42728   Hi Allen ls7550 02/17/18 07:40:54 PM
#42727   If you ignore cash interest and dividends and ls7550 02/17/18 07:20:34 PM
#42726   Hi all galtinvestor 02/17/18 01:36:29 PM
#42725   Hi Allen, Re: PC incremental increases............. OldAIMGuy 02/17/18 10:51:26 AM
#42724   Hi Tom Toofuzzy 02/17/18 02:09:18 AM
#42723   Hi Tom and Adam, Using a percentage increase SFSecurity 02/16/18 06:21:38 PM
#42722   Hi Adam, Re: Indexing PC with ETFs.............. OldAIMGuy 02/16/18 04:49:44 PM
#42721   Hi Tom, I’m AIMing VNQ as well and Adam 02/16/18 12:45:12 PM
#42720   Recently I've been able to add to my OldAIMGuy 02/15/18 10:09:33 AM
#42719   Hi Clive, jaiml 02/13/18 02:24:32 PM
#42718   Hi Clive Toofuzzy 02/13/18 08:29:46 AM
#42717   Near month will expire/roll soon (tomorrow?). ls7550 02/13/18 05:39:04 AM
#42716   Hi Clive Toofuzzy 02/13/18 01:03:44 AM
#42715   Hi Toofuzzy. Thought I'd just record this snapshot ls7550 02/12/18 07:23:54 PM
#42714   Hi JD, Re: v-Wave Scale and range............. OldAIMGuy 02/12/18 04:46:27 PM
#42713   Hi Allen Toofuzzy 02/12/18 04:42:05 PM
#42712   Hi Toofuzzy, You said:...if I had no funds SFSecurity 02/12/18 04:09:11 PM
#42711   Hi Tom Toofuzzy 02/12/18 02:44:29 PM
#42710   Great visual. Thanks, Tom. JDerb 02/12/18 02:15:15 PM
#42709   Thanks JD, Re: v-Wave response to markets................. OldAIMGuy 02/12/18 11:52:44 AM
#42708   VWave for the Week of February 16th JDerb 02/12/18 10:50:53 AM
#42707   Hi Clive Toofuzzy 02/10/18 04:08:40 PM
#42706   Hi Clive, You have a good detailed reply Adam 02/10/18 02:49:16 PM
#42705   Hi Toofuzzy. ls7550 02/10/18 12:07:44 PM
#42704   Hi Adam Toofuzzy 02/10/18 10:01:08 AM
#42703   I would have thought better results with the Toofuzzy 02/10/18 09:41:55 AM
#42702   Hi Adam ls7550 02/10/18 08:37:51 AM
#42701   Hi Toof, I've no idea what the market Adam 02/10/18 01:07:24 AM
#42700   Hi lostcowboy. In the sticky posts at the ls7550 02/09/18 09:46:11 PM
#42699   Ocroft analysis ls7550 02/09/18 09:36:31 PM
#42698   I did a quick look at the readme lostcowboy 02/09/18 09:18:24 PM
#42697   Hi Allen, try instead ls7550 02/09/18 08:09:12 PM
#42696   Adam What, you think the market is going to Toofuzzy 02/09/18 06:11:52 PM
#42695   Some thoughts on the volatility. I think Lichello's Adam 02/09/18 03:21:43 PM
#42694   It's shopping time for AIM. I had buys Adam 02/09/18 01:38:30 PM
#42693   Hi J. ls7550 02/08/18 11:50:35 AM
#42692   Jaiml UVXY went up because near term VIX is Toofuzzy 02/08/18 11:26:15 AM
#42691   Hi Clive, re SVXY: jaiml 02/08/18 09:52:43 AM
#42690   Hi Toof, you’re right I don’t own SVXY. Adam 02/07/18 04:08:13 PM
#42689   I don't know about the correction on SVXY Toofuzzy 02/07/18 12:57:06 PM
#42688   I’m also waiting for a decline to make Adam 02/07/18 12:28:39 PM
#42687   Hi Is7550, What is the username and password SFSecurity 02/07/18 12:08:10 PM
#42686   Hi K ls7550 02/07/18 08:49:21 AM
#42685   Hi Toofuzzy ls7550 02/07/18 08:19:39 AM
#42684   Hi Karen, Re:Newport...... OldAIMGuy 02/07/18 08:00:52 AM
#42683   SVXY is definitely more risky than I thought. Toofuzzy 02/06/18 05:08:51 PM
#42682   OK, makes sense. Just wanted to make sure jaiml 02/06/18 05:05:27 PM
#42681   To answer you questions backwards I expected them Toofuzzy 02/06/18 04:51:54 PM
#42680   @Toof, you are brave. jaiml 02/06/18 04:37:59 PM
#42679   I have been waiting for this crash. I Toofuzzy 02/06/18 04:27:22 PM