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

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Last Post: 12/11/2017 11:09:00 AM - Followers: 270 - 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
#42496   VWave for the week of December 15th JDerb 12/11/17 11:09:00 AM
#42495   VectorVest Hi Allen, CanRay 12/08/17 10:00:14 PM
#42494   Hi Gang, I did some digging on Vector SFSecurity 12/08/17 11:43:47 AM
#42493   Hi Gang, I got a mailer from VectorVest SFSecurity 12/07/17 05:56:17 PM
#42492   Hi Allen, Re: Ouch! Oscillator............ OldAIMGuy 12/05/17 04:12:56 PM
#42491   Hi Tom, Please explain the "Ouch!!!!" Is it SFSecurity 12/05/17 12:37:36 PM
#42490   Ouch!!!! OldAIMGuy 12/03/17 06:35:40 PM
#42489   VWave for the week of December 8th JDerb 12/03/17 05:06:14 PM
#42488   Hi Gang, In looking at Yahoo I noticed SFSecurity 12/01/17 09:23:38 PM
#42487   Hi Toofuzzy, Yep, read that and some stuff SFSecurity 12/01/17 05:41:27 PM
#42486   Hi Toof, See my reply to Karw. It OldAIMGuy 12/01/17 08:26:08 AM
#42485   Thanks Karl, Re: ST Treasury Coupon rate........... OldAIMGuy 12/01/17 08:25:26 AM
#42484   Hi Gang, I've been playing around with a SFSecurity 11/30/17 05:53:24 PM
#42483   Allen Have you read " the 3% signal" Toofuzzy 11/30/17 05:04:45 PM
#42482   Hi Gang, SFSecurity 11/30/17 03:24:23 PM
#42481   Hi Tom Toofuzzy 11/30/17 11:19:44 AM
#42480   13 Week Treasury Coupon Rate finally broke through karw 11/30/17 02:02:23 AM
#42479   Hi Tom, Yep, there are several approaches to SFSecurity 11/29/17 01:25:48 PM
#42478   Also, scroll down: bar1080 11/29/17 09:56:29 AM
#42477   I mod IHUB's two Berkshire Hathaway boards. There's bar1080 11/29/17 09:54:11 AM
#42476   Hi Toof, Re: 100 to 1............ OldAIMGuy 11/29/17 09:30:40 AM
#42475   Hi Tom Toofuzzy 11/29/17 09:22:28 AM
#42474   Hi Bar and Welcome, Re: Bigger Gains with OldAIMGuy 11/29/17 08:36:39 AM
#42473   Can't believe someone is talking about LEXCX! I've bar1080 11/28/17 05:44:33 PM
#42472   Thank you ls7550 neko 11/28/17 03:26:10 PM
#42471   Its kind of amazing how long the market Toofuzzy 11/27/17 12:49:23 PM
#42470   VWave for the week of December 1st JDerb 11/27/17 11:08:26 AM
#42469   Hi Neko ls7550 11/24/17 04:28:16 PM
#42468   Thanks Jon, OldAIMGuy 11/24/17 08:37:24 AM
#42467   Happy Thanksgiving, AIMers! JDerb 11/23/17 08:20:08 PM
#42466   Congratulations Tom Toofuzzy 11/21/17 10:30:15 PM
#42465   Hi Toofuzzy, yep, I agree with you. They SFSecurity 11/21/17 06:44:29 PM
#42464   Nice day today. My "stocks" account rose an OldAIMGuy 11/21/17 04:48:22 PM
#42463   Hi Ken, Re: Drop and Add.............. OldAIMGuy 11/21/17 04:46:17 PM
#42462   Drop and Add..... Firebird400 11/21/17 09:51:24 AM
#42461   Hi SF Toofuzzy 11/21/17 09:19:09 AM
#42460   Hi Gang, As Toofuzzy says, you can trade SFSecurity 11/21/17 01:07:24 AM
#42459   Neck It has a front end sales load and Toofuzzy 11/20/17 03:38:06 PM
#42458   Neck Is it a closed end fund? Toofuzzy 11/20/17 03:31:39 PM
#42457   Hi Tofuzzy Tom neko 11/20/17 02:54:18 PM
#42456   VWave for the week of November 24th JDerb 11/20/17 12:09:29 PM
#42455   "You know, I haven't been able to look Toofuzzy 11/20/17 08:27:10 AM
#42454   Hi Neko, Re LEXCX................ OldAIMGuy 11/19/17 05:15:08 PM
#42453   Neck You might be better off with something like Toofuzzy 11/18/17 10:23:00 PM
#42452   Hi N, re: LEXCX.............. OldAIMGuy 11/18/17 05:43:22 PM
#42451   Hi If one used lexcx as an investing vehicle. neko 11/18/17 12:03:32 PM
#42450   Hi Gang, Found two interesting listings of stocks/ETFs/etc SFSecurity 11/17/17 03:46:26 PM
#42449   Hi Gang, Found out what IVR stands for: SFSecurity 11/14/17 08:41:52 PM
#42448   Hi Gang, If you use TDAmeritrade, here is SFSecurity 11/14/17 07:59:00 PM
#42447   Tom Yahoo does not give alerts anymore on their Toofuzzy 11/14/17 04:51:52 PM