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

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Last Post: 6/19/2018 9:08:19 PM - Followers: 272 - 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
#43038   Hi Tom, My GTC buy in SCHE (Schwab Adam 06/19/18 09:08:18 PM
#43037   I'm using the Wisdomtree ETF, DGS. Reasonable yield OldAIMGuy 06/19/18 05:21:18 PM
#43036   Hi Tom, Which "international small cap emerging markets SFSecurity 06/19/18 03:11:31 PM
#43035   Re: International ETF portfolio.............. OldAIMGuy 06/19/18 02:59:02 PM
#43034   Of course! Just as my retirement account crests OldAIMGuy 06/19/18 10:03:42 AM
#43033   Thanks JD, OldAIMGuy 06/18/18 06:13:08 PM
#43032   VWave for the Week of June 22nd JDerb 06/18/18 11:07:31 AM
#43031   Amendment......... Please reverse Portfolios 1 and 4 in description. OldAIMGuy 06/18/18 09:14:30 AM
#43030   Okay, my option on NKTR expired today, 9 SFSecurity 06/16/18 02:36:13 AM
#43029   Hi folks, Remember me asking about NKTR and SFSecurity 06/15/18 01:19:47 PM
#43028   Thank you for your reply and the recommendations Kast 06/14/18 06:52:39 AM
#43027   Hi Allen, I agree with you that AIM Adam 06/13/18 12:36:38 PM
#43026   Welcome back K, Re: ETFs for AIM.............. OldAIMGuy 06/13/18 09:59:22 AM
#43025   I used to visit and read posts on Kast 06/13/18 06:23:34 AM
#43024   Hi Gang, The other issue in backtesting is SFSecurity 06/12/18 04:12:33 PM
#43023   Thanks for this Allen. OldAIMGuy 06/11/18 07:36:46 PM
#43022   Hi Gang, I finally found the way to SFSecurity 06/11/18 06:46:32 PM
#43021   Good Morning Gang, I've revise my AIM spreadsheet SFSecurity 06/11/18 02:38:43 PM
#43020   VWave for the Week of June 15th JDerb 06/11/18 10:44:35 AM
#43019   Today my 10 stock Sandbox finally broke through OldAIMGuy 06/08/18 03:55:24 PM
#43018   The Window Dressing Portfolio, Firebird400 06/07/18 02:10:46 PM
#43017   Quite funny Tom! SFSecurity 06/07/18 12:44:55 PM
#43016   Hi Allen, Re: TD account balances Haiku....... OldAIMGuy 06/07/18 08:21:20 AM
#43015   Talk about shocking! When I opened TDAmeritrade just SFSecurity 06/06/18 06:10:12 PM
#43014   Hi Gang, Did anyone notice the ~42% drop SFSecurity 06/05/18 01:02:54 PM
#43013   Hi Medman69, If you'll drop me a line SFSecurity 06/05/18 12:55:09 PM
#43012   Thanks for the pointer, Tom. It's nice having SFSecurity 06/05/18 12:49:31 PM
#43011   VWave for the Week of June 8th JDerb 06/04/18 12:03:05 PM
#43010   Hi M69, Re: Definitions............. OldAIMGuy 06/03/18 07:53:05 PM
#43009   Grub? Do I win a free dozen golf balls? Firebird400 06/03/18 07:31:23 PM
#43008   Update... YTD thru 6/1/2018... 35% stock.. 65% cash... Avg Firebird400 06/03/18 07:28:06 PM
#43007   Help with AIM Spreadsheet, split safe, and "Vealing" Medman69 06/03/18 03:46:44 PM
#43006   Report through May.................. OldAIMGuy 06/02/18 11:14:06 AM
#43005   Hi M69 and Welcome. I'm sure you'll get OldAIMGuy 06/02/18 11:00:40 AM
#43004   Wow Ken, I didn't see that coming!!! OldAIMGuy 06/02/18 10:56:34 AM
#43003   Hi: Medman69 06/02/18 01:47:43 AM
#43002   Outstanding, Ken! JDerb 06/01/18 11:12:26 PM
#43001   Bingo! Firebird400 06/01/18 07:50:40 PM
#43000   ............. Firebird400 06/01/18 07:50:06 PM
#42999   ............ Firebird400 06/01/18 07:49:54 PM
#42998   ........... Firebird400 06/01/18 07:49:43 PM
#42997   .......... Firebird400 06/01/18 07:49:16 PM
#42996   ......... Firebird400 06/01/18 07:49:06 PM
#42995   ........ Firebird400 06/01/18 07:48:57 PM
#42994   ....... Firebird400 06/01/18 07:48:45 PM
#42993   ...... Firebird400 06/01/18 07:48:35 PM
#42992   ..... Firebird400 06/01/18 07:48:26 PM
#42991   .... Firebird400 06/01/18 07:48:13 PM
#42990   ... Firebird400 06/01/18 07:48:03 PM
#42989   .. Firebird400 06/01/18 07:47:54 PM