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

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Last Post: 12/15/2018 12:17:54 PM - Followers: 273 - 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%. Our continuous database starts January of 1982 and we scaled our "zero cash" to the market risk low point of early that year. 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

Current three years of the v-Wave:

Median value for the v-Wave is 44%. High Risk is 51% cash or higher for individual company stocks. Low Risk is 36% cash or lower. 
To get a more proper cash level for diversified mutual fund holdings we divide the currenty "Stocks" value by 1.5. This gives us 36% as the high risk threshold and 24% low risk
with mutual funds. 

                                      Looking at the cumulative risk of the v-Wave gives another perspective:

Cumulative v-Wave is calculated by taking each week's v-Wave Stock value, subtracting the median value from it and adding it to the previous total.

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: http://www.aim-users.com/index.html AIM Weekly Newsletter (free): http://www.aim-users.com/3bbs.htm AIM Stock Examples: http://www.aim-users.com/pic.htm

AIM "Cash Burn" Chart

http://www.aim-users.com/cashburn.htm AIM Exchange Traded Funds (ETFs) Board http://www.investorshub.com/boards/board.asp?board_id=1292 Tom's Retirement Account with ETFs http://www.aim-users.com/etfunds.htm Software for AIM accounts: http://www.aim-users.com/aimware.htm 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: http://www.investorshub.com/boards/board.asp?board_id=992 and http://www.aim-users.com/qanda.htm 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: http://www.investorshub.com/boards/board.asp?board_id=1010 Newsletter Archives - http://www.aim-users.com/archive.htm 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 www.aim-users.com This is a copy of www.aim-users.com 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
#43370   VWave 2.01* JDerb 12/15/18 12:17:53 PM
#43369   Hi Ken, Re: Market Risk and a near OldAIMGuy 12/12/18 09:53:36 AM
#43368   Hi Tom, Re: Bottom?, Firebird400 12/11/18 01:00:38 PM
#43367   Good morning JD, Re: v-Wave_2.01............... OldAIMGuy 12/10/18 09:07:54 AM
#43366   Thanks so much, Tom for all of your JDerb 12/09/18 09:43:44 PM
#43365   Hi JD, Re: v-Wave history............ OldAIMGuy 12/09/18 06:15:25 PM
#43364   Hi JD, Re: Ten Year history of the v-Wave............. OldAIMGuy 12/09/18 11:44:35 AM
#43363   VWave for the Week of December 14th JDerb 12/08/18 06:35:17 PM
#43362   Hi JD, Re: 10 Year Histogram................. OldAIMGuy 12/08/18 08:44:53 AM
#43361   With a little help from our friends at JDerb 12/07/18 10:49:44 PM
#43360   Thanks for the updated chart. V wave has Toofuzzy 12/07/18 07:10:15 PM
#43359   10 YEAR VWAVE JDerb 12/07/18 06:58:57 PM
#43358   Hi Adam (and Tom) Reading your comments on SFSecurity 12/07/18 04:47:12 PM
#43357   Hi Tom, While I agree that AI trading SFSecurity 12/07/18 02:19:36 PM
#43356   Hi Toof, OldAIMGuy 12/06/18 05:53:48 PM
#43355   ....we are cheaper than China now? OldAIMGuy 12/06/18 05:52:54 PM
#43354   Hi Tom Toofuzzy 12/06/18 04:32:03 PM
#43353   Hi Tom Toofuzzy 12/06/18 04:29:34 PM
#43352   Firebird The market leads the economy and interest rates Toofuzzy 12/06/18 04:27:49 PM
#43351   Strange Day! OldAIMGuy 12/06/18 03:57:36 PM
#43350   Hi Ken, OldAIMGuy 12/06/18 02:59:23 PM
#43349   Hi Tom, Re: Void, Firebird400 12/06/18 01:39:00 PM
#43348   Hi Adam, Firebird400 12/06/18 01:26:57 PM
#43347   Hi Adam, Re: AIM activity............ OldAIMGuy 12/06/18 11:10:10 AM
#43346   Hi Tom, Good comments. For us who take Adam 12/06/18 10:50:08 AM
#43345   Dow 2018 Gains Gone At Open... Firebird400 12/06/18 09:05:37 AM
#43344   Here's another article on computer generated sell-offs and rallies: OldAIMGuy 12/06/18 07:35:52 AM
#43343   Hi Allen, Re: Robot Trading vs Smart (AIM) Investing.......... OldAIMGuy 12/05/18 03:10:05 PM
#43342   Hi Folks, Interesting tidbit in the paper today. SFSecurity 12/05/18 12:53:53 PM
#43341   Update... Firebird400 12/05/18 09:29:24 AM
#43340   AIM portfolio performances, November.................. OldAIMGuy 12/04/18 08:22:38 AM
#43339   Good morning Toof, Re: Formulae for calculating AIM's OldAIMGuy 12/02/18 07:24:56 AM
#43338   Hi Tom Toofuzzy 12/01/18 01:30:31 PM
#43337   VWave for the Week of December 7th JDerb 12/01/18 11:43:34 AM
#43336   Hi Allen Toofuzzy 11/28/18 12:24:22 AM
#43335   Hi TooFuzzy, Yeah, I used the amount that SFSecurity 11/28/18 12:06:32 AM
#43334   Hi SF Toofuzzy 11/27/18 11:23:26 PM
#43333   Hi Toofuzzy, I've been using the date of SFSecurity 11/27/18 12:59:31 PM
#43332   Thank you Tom! crlamura 11/26/18 12:12:59 PM
#43331   Hi Allen, OldAIMGuy 11/26/18 09:52:43 AM
#43330   Good morning Allen, Re: Market Risk Indicator results............ OldAIMGuy 11/26/18 07:51:10 AM
#43329   Hi SF Toofuzzy 11/25/18 10:30:14 PM
#43328   Hi Allen, Re: AIM and Options........... OldAIMGuy 11/25/18 10:16:57 AM
#43327   Hey Clive, Toofuzzy, How do you calculate the SFSecurity 11/24/18 10:08:54 PM
#43326   Thanks JD, OldAIMGuy 11/24/18 01:23:50 PM
#43325   Hi Roby and Welcome, OldAIMGuy 11/24/18 01:20:30 PM
#43324   VWave for the Week of November 30th JDerb 11/24/18 12:30:41 PM
#43323   Good Morning! My name is Roby from Italy. crlamura 11/24/18 11:13:27 AM
#43322   Have a wonderful Thanksgiving celebration today. Unemployment down, OldAIMGuy 11/22/18 07:45:15 AM
#43321   Once again this sign has meaning............... OldAIMGuy 11/20/18 06:27:57 AM