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

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Last Post: 10/18/2017 7:47:05 PM - Followers: 270 - Board type: Free - Posts Today: 5

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
#42368   Hi Toofuzzy, Where is the monthly selection? All SFSecurity 10/18/17 07:47:05 PM
#42367   Toofuzzy This Firebird400 10/18/17 04:41:58 PM
#42366   Firebird You will have to tell me how you Toofuzzy 10/18/17 03:59:56 PM
#42365   Hi everyone. The Grabber 10/18/17 12:29:44 PM
#42364   Re; "whip sawed", Firebird400 10/18/17 10:31:10 AM
#42363   Hi Allen Toofuzzy 10/17/17 09:11:41 PM
#42362   Hi Allen Toofuzzy 10/17/17 09:03:43 PM
#42361   Hi Gang, Following up on looking for indicator SFSecurity 10/17/17 05:12:07 PM
#42360   Hi Toofuzzy, I'm not sure what you are SFSecurity 10/17/17 01:22:26 PM
#42359   Hi Allen Toofuzzy 10/17/17 12:43:09 AM
#42358   Thanks Tom. SFSecurity 10/16/17 05:07:19 PM
#42357   VWave for the week of October 20th JDerb 10/16/17 11:01:30 AM
#42356   Hi Allen, Re: Market Tops..... OldAIMGuy 10/16/17 08:47:46 AM
#42355   Hi K, My cash is a bit over SFSecurity 10/16/17 01:39:16 AM
#42354   Hi Allen, karw 10/15/17 04:49:57 AM
#42353   Hi Tom... That certainly seems to be the pattern. JDerb 10/10/17 04:06:53 PM
#42352   Hi JD, Re: v-Wave risk.................. OldAIMGuy 10/10/17 11:18:14 AM
#42351   VWave for the week of October 13th JDerb 10/09/17 12:17:44 PM
#42350   Hi Karw, It was your comment, "...the cash SFSecurity 10/04/17 08:21:56 PM
#42349   Hi Allen, karw 10/04/17 11:04:19 AM
#42348   Hi Gang, I got to thinking (dangerous) that SFSecurity 10/04/17 12:55:59 AM
#42347   Hi Toofuzzy, I have a feeling I am SFSecurity 10/03/17 07:24:54 PM
#42346   UBA update karw 10/03/17 10:04:53 AM
#42345   Thanks Toof, Tom, I am living off mine Mvls 10/03/17 09:12:04 AM
#42344   Hi Allen, hrfanmike 10/02/17 10:04:27 PM
#42343   Re: my returns. Toofuzzy 10/02/17 05:30:16 PM
#42342   Hi Marv, Re: Performance goals for the long term............ OldAIMGuy 10/02/17 03:16:16 PM
#42341   Mvls If the overall market goes up close to Toofuzzy 10/02/17 12:39:00 PM
#42340   Hi Tom, Happy Birthday. What kind Mvls 10/02/17 08:44:15 AM
#42339   VWave for the week of October 6th JDerb 10/02/17 08:41:41 AM
#42338   Hi Tom, Yeah, Ford, and a lot of SFSecurity 10/02/17 01:07:18 AM
#42337   Hi hrfanmike, Interesting list. One of them, IJR , SFSecurity 10/02/17 12:07:19 AM
#42335   At this point it is hard for me Toofuzzy 09/30/17 09:56:56 AM
#42334   Personal accounts results: OldAIMGuy 09/29/17 05:02:03 PM
#42333   Q3 Index results: OldAIMGuy 09/29/17 04:35:24 PM
#42332   Hi Mike, Re: Ford as an AIM investment........... OldAIMGuy 09/29/17 01:15:33 PM
#42331   It sounded like you didn't start Aiming yet Toofuzzy 09/29/17 01:37:07 AM
#42330   Hi Toofuzzy, hrfanmike 09/29/17 12:58:18 AM
#42329   HI hrfanmike Toofuzzy 09/29/17 12:06:37 AM
#42328   I don't own any individual stocks as I hrfanmike 09/28/17 10:17:23 PM
#42327   I got a friend started with AIM this OldAIMGuy 09/28/17 08:21:20 PM
#42326   Hi Tom (Not really that old an AIM SFSecurity 09/26/17 01:13:14 PM
#42325   Hi Allen, Re: visual comparison of ETF performances OldAIMGuy 09/26/17 12:19:11 PM
#42324   HI SF Toofuzzy 09/25/17 07:45:29 PM
#42323   Hi Toofuzzy, Alas, I do not know which SFSecurity 09/25/17 02:31:48 PM
#42322 karw 09/25/17 01:15:06 PM
#42321   Thanks JD, OldAIMGuy 09/25/17 12:01:31 PM
#42320   HAPPY BIRTHDAY , TOM! ?? JDerb 09/25/17 11:47:29 AM
#42319   Hi Allen, Re: ETF performance against specific indexes........... OldAIMGuy 09/25/17 11:28:23 AM
#42318   VWave for the week of September 29th JDerb 09/25/17 11:27:25 AM