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Last Post: 3/23/2019 1:49:07 AM - Followers: 274 - Board type: Free - Posts Today: 1

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
#43563   Hi Tom Toofuzzy 03/23/19 01:49:05 AM
#43562   I always sell those shares that are at SFSecurity 03/22/19 05:43:45 PM
#43561   Hi Toof, OldAIMGuy 03/22/19 02:50:12 PM
#43560   Placed a GTC order to sell 5% of Toofuzzy 03/22/19 02:45:37 PM
#43559   Hi Buzz, Re: Profit Capture............ OldAIMGuy 03/22/19 09:06:02 AM
#43558   I guess some safety and some volatility capture Buzz78 03/21/19 05:19:11 PM
#43557   Hi Cap, Re: Constant Ratio Rebalance for of AIM............. OldAIMGuy 03/21/19 09:04:38 AM
#43556   Hi Toofussy Cap10 Kaoz 03/20/19 05:12:59 PM
#43555   Hi Cap Toofuzzy 03/20/19 01:03:04 PM
#43554   In the editing box at the Left when OldAIMGuy 03/20/19 09:55:35 AM
#43553   Hi Toofuzzy: Cap10 Kaoz 03/19/19 10:42:22 PM
#43552   HI TOOFUZZY Cap10 Kaoz 03/19/19 06:25:12 PM
#43551   HI TOOFUZZY Cap10 Kaoz 03/19/19 06:18:38 PM
#43550   Hi Cap Toofuzzy 03/19/19 04:38:01 PM
#43549   Hi OAG: Cap10 Kaoz 03/19/19 04:08:10 PM
#43548   Haiku in words and pictures: OldAIMGuy 03/18/19 02:47:37 PM
#43547   Hi Cap, Re: ratio of trades, Buying and Selling........... OldAIMGuy 03/17/19 11:28:07 AM
#43546   HI OLDAIMGUY: Cap10 Kaoz 03/16/19 05:40:20 PM
#43545   Hi Adam, Re: Huge Hold Zone................ OldAIMGuy 03/16/19 01:23:18 PM
#43544   Hi Cap, Re: Sell SAFE................... OldAIMGuy 03/16/19 01:20:49 PM
#43543   VWave 2.01* JDerb 03/16/19 11:35:12 AM
#43542   Hi again Old Aim Guy: Cap10 Kaoz 03/15/19 04:42:46 PM
#43541   I've also had a few stocks where I've Adam 03/15/19 12:29:13 PM
#43540   Hi C, Re: "By leaving the safe sell OldAIMGuy 03/15/19 08:58:59 AM
#43539   Hi Old Aim Guy Cap10 Kaoz 03/14/19 05:33:02 PM
#43538   Hi Cap, Re: SAFE settings................. OldAIMGuy 03/14/19 12:51:57 PM
#43537   Hi Folks, I came across a couple of SFSecurity 03/14/19 12:47:45 AM
#43536   Hi Folks: Cap10 Kaoz 03/13/19 10:52:18 PM
#43535   I have a few things I LD Aim also. Toofuzzy 03/11/19 04:19:55 PM
#43534   Hi Adam, Re: Core vs Sandbox Investments............ OldAIMGuy 03/11/19 01:02:05 PM
#43533   Since it's quiet here I'll post an update. Adam 03/11/19 12:52:19 PM
#43532   VWave 2.01* JDerb 03/09/19 12:46:05 PM
#43531   VWave 2.01* JDerb 03/02/19 12:04:55 PM
#43530   It's quiet here today. Must be that everyone OldAIMGuy 02/27/19 12:47:30 PM
#43529   Re: STKL........... OldAIMGuy 02/26/19 01:28:52 PM
#43528   I wish STKL was going up with everything Toofuzzy 02/26/19 11:32:44 AM
#43527   Investors appear to be expecting a continuation of OldAIMGuy 02/25/19 10:47:08 AM
#43526   Hi Allen, Re: Termvest.......... OldAIMGuy 02/25/19 08:08:51 AM
#43525   Hi Tom, Thanks for the "Termvest" note. I've SFSecurity 02/24/19 06:37:20 PM
#43524   I guess risk is moving back up again...... OldAIMGuy 02/24/19 01:02:35 PM
#43523   Sale last week of 6% of my WPM Toofuzzy 02/23/19 10:21:21 PM
#43522   Thanks for the histogram Tom. Toofuzzy 02/23/19 10:16:49 PM
#43521   Hi S123, Re: Twinvest.................... OldAIMGuy 02/23/19 11:50:56 AM
#43520   Thanks JD, Re: v-Wave..................... OldAIMGuy 02/23/19 11:41:48 AM
#43519   VWave 2.01* JDerb 02/23/19 11:33:18 AM
#43518   Thank you...your advise helps. Sunil123 02/22/19 06:47:23 PM
#43517   Thank you very much for the ideas.. I Sunil123 02/22/19 06:45:36 PM
#43516   I see TooFuzzy has already replied. OldAIMGuy 02/21/19 09:24:37 AM
#43515   Hi Sunil Toofuzzy 02/21/19 02:40:35 AM
#43514   AIM Advise Please: Sunil123 02/20/19 10:21:11 PM