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Last Post: 4/18/2018 7:13:36 PM - Followers: 271 - 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
#42914   Today a GTC sell triggered in INTC for Adam 04/18/18 07:13:36 PM
#42913   Today a GTC sell triggered in INTC for Adam 04/18/18 07:13:35 PM
#42912   Hi Toofuzzy, Can't agree with you more when SFSecurity 04/17/18 03:26:30 PM
#42911   Hi Toof, Re: "Normalized" interest rates on PB OldAIMGuy 04/17/18 02:53:04 PM
#42910   Hi Allen, yes I made a typo it's HYGH. Adam 04/17/18 02:49:23 PM
#42909   Sorry I meant HYGH. Adam 04/17/18 02:48:35 PM
#42908   Hi Tom Toofuzzy 04/17/18 01:38:24 PM
#42907   Hi Steve, Re: Automatic Investor.................... OldAIMGuy 04/17/18 12:23:46 PM
#42906   Hi Toof, Re: Earnings vs withdrawal rates....... OldAIMGuy 04/17/18 12:16:39 PM
#42905   Hi Tom, Wild Firebird400 04/17/18 09:09:42 AM
#42904   Hi Steve, Firebird400 04/17/18 09:05:19 AM
#42903   Hi All, Micro2Macro 04/17/18 12:00:38 AM
#42902   My account up 1.2% today including cash Toofuzzy 04/16/18 09:13:05 PM
#42901   A nice day in the AIM Sandbox. The OldAIMGuy 04/16/18 07:02:43 PM
#42900   Thanks JD, OldAIMGuy 04/16/18 12:48:08 PM
#42899   Hi SF Toofuzzy 04/16/18 12:35:56 PM
#42898   VWave for the Week of April 20th JDerb 04/16/18 10:56:41 AM
#42897   Hi TF, You might also consider MLPQ . It SFSecurity 04/16/18 12:54:26 AM
#42896   Hi SF Toofuzzy 04/13/18 08:09:10 PM
#42895   Hi Adam, did you mean HYGH ? No such SFSecurity 04/13/18 07:48:58 PM
#42894   Hi Toofuzzy, SFSecurity 04/13/18 07:38:31 PM
#42893   Hi Adam Toofuzzy 04/13/18 03:27:15 PM
#42892   Thanks Toof, I found an article on these Adam 04/13/18 03:23:11 PM
#42891   Hi SF Toofuzzy 04/13/18 02:32:54 AM
#42890   Hi Gang, Obviously I need to stop and SFSecurity 04/13/18 02:10:22 AM
#42889   Firebird You may be right about the High Frequency Toofuzzy 04/13/18 01:28:18 AM
#42888   Hi Adam Toofuzzy 04/13/18 01:24:22 AM
#42887   Hi Tom Toofuzzy 04/13/18 01:19:25 AM
#42886   Held there..... Firebird400 04/12/18 04:48:29 PM
#42885   Cash earnings, Firebird400 04/12/18 04:29:11 PM
#42884   About HYZD. What does zero duration Bond Fund Adam 04/12/18 12:49:07 PM
#42883   Hi Toof, Re: HYZD as a partial cash substitute............. OldAIMGuy 04/12/18 12:35:00 PM
#42882   With interest rates so low holding cash in Toofuzzy 04/12/18 12:02:58 PM
#42881   Hi Steve, Pay raise... Firebird400 04/11/18 08:40:00 AM
#42880   Hi Toof, Yesterday Firebird400 04/11/18 08:29:30 AM
#42879   I thought the market was going down. I Toofuzzy 04/10/18 12:12:54 PM
#42878   Thanks Ken. The Grabber 04/09/18 04:40:24 PM
#42877   Hi Jon. The Grabber 04/09/18 04:29:10 PM
#42876   Ours was a 30 year fixed, non-assumable. The Grabber 04/09/18 04:27:41 PM
#42875   The 'ghost' as you say may want to The Grabber 04/09/18 04:19:05 PM
#42874   Thanks JD, Re: v-Wave activity............. OldAIMGuy 04/09/18 12:02:45 PM
#42873   VWave for the Week of April 13th JDerb 04/09/18 10:34:01 AM
#42872   Hi Allen, Firebird400 04/09/18 09:28:02 AM
#42871   Thanks Firebird for the working link; however when SFSecurity 04/09/18 12:18:13 AM
#42870   Hi Steve ls7550 04/07/18 08:06:02 PM
#42869   Hi Allen, Firebird400 04/07/18 07:09:21 PM
#42868   Hi Steve, Re: Rates Firebird400 04/07/18 08:46:37 AM
#42867   Hi Gang, I'm curious, does anyone have a SFSecurity 04/07/18 12:10:31 AM
#42866   Hey Steve... Nice to see your responses again on JDerb 04/06/18 08:24:32 PM
#42865   Ouch!!!! OldAIMGuy 04/06/18 08:08:22 PM