Home > Boards > Free Zone > A.I.M. >

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

      Hide Sticky   Hide Intro
Moderator: OldAIMGuy Assistants: The Grabber
Search This Board: 
Last Post: 3/24/2018 12:51:38 PM - Followers: 271 - 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%. 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

PlusOneCoin Top Posts
No plusone'd posts yet. Be the first!
#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
#42816   Addition, Firebird400 03/24/18 12:51:38 PM
#42815   Here's an interesting perspective on the current markets: OldAIMGuy 03/23/18 01:44:26 PM
#42814   Truth is I thought it mattered Toofuzzy 03/23/18 10:34:39 AM
#42813   Yesterday's 4% downturn for the Dow managed to OldAIMGuy 03/23/18 08:22:19 AM
#42812   Maybe a bit of AM haiku to sooth OldAIMGuy 03/23/18 07:50:30 AM
#42811   About AIMing Leaps: I had the same idea Adam 03/22/18 05:03:26 PM
#42810   Jeff, welcome! I have posted your website before, lostcowboy 03/20/18 01:45:53 AM
#42809   Iuse my own brand of AIM using long-term AIMLEAPS 03/19/18 07:19:17 PM
#42808   Aimleaps How far in the money do you buy Toofuzzy 03/19/18 06:14:19 PM
#42807   Hi Jeff - uh er -AIMLeaps..... OldAIMGuy 03/19/18 01:59:53 PM
#42806   I use AIM with long-term options (LEAPS). Hi AIMLEAPS 03/19/18 01:19:55 PM
#42805   VWave for the Week of March 23rd JDerb 03/19/18 12:02:49 PM
#42804   Sells/ Cash... Firebird400 03/17/18 09:03:40 AM
#42803   Hi galtinvestor, thanks for the comprehensive reply. I SFSecurity 03/16/18 05:02:39 PM
#42802   Hi Galt and others, re leveraged ETFs. There Adam 03/16/18 01:00:52 PM
#42801   Hi Bob ls7550 03/15/18 04:46:21 PM
#42800   Hi Jon, Firebird400 03/15/18 09:28:02 AM
#42799   Hi Tom. Sells / Poof Funds Firebird400 03/15/18 09:21:54 AM
#42798   Hi G, BowlerBob 03/15/18 01:44:00 AM
#42797   Hi Toof, Re: Leveraged Funds.................. OldAIMGuy 03/14/18 09:15:42 PM
#42796   Hi Galtinvestor Toofuzzy 03/14/18 05:27:36 PM
#42795   Hi GI, Re: messages.......... OldAIMGuy 03/14/18 04:57:24 PM
#42794   Hi G, Firebird400 03/14/18 02:17:56 PM
#42793   Re: Dialog, Firebird400 03/14/18 02:15:19 PM
#42792   Hi SF galtinvestor 03/14/18 01:08:27 PM
#42791   Hi Galtinvestor, Part of the problem is that SFSecurity 03/13/18 08:05:23 PM
#42790   Re: the latest couple posts. galtinvestor 03/13/18 11:28:05 AM
#42789   Hi Allen Toofuzzy 03/13/18 12:15:07 AM
#42788   Hi Toofuzzy, I understand what you are saying; SFSecurity 03/12/18 08:07:08 PM
#42787   Hi Allen Toofuzzy 03/12/18 04:18:05 PM
#42786   VWave for the Week of March 16th JDerb 03/12/18 11:12:47 AM
#42785   Hi Firebird, Thanks for that info. SFSecurity 03/11/18 04:53:19 PM
#42784   Hi Clive Toofuzzy 03/09/18 06:28:04 PM
#42783   Hi Toofuzzy picked up 100 shares of SVXY ls7550 03/09/18 06:23:29 PM
#42782   Thanks ls7550 03/08/18 05:35:55 PM
#42781   Jdeb Toofuzzy 03/07/18 10:13:16 PM
#42780   Hi Clive.. 6 Sig uses a base allocation of JDerb 03/07/18 09:01:59 PM
#42779   Hi Gang, The key difference between Kelly's 3/6/9% SFSecurity 03/07/18 07:30:14 PM
#42778   Kelly has 3 Sig which uses IJR and ls7550 03/07/18 03:11:39 PM
#42777   Re: Find, Firebird400 03/07/18 08:24:38 AM
#42776   Hi TF... Kelly has 3 Sig which uses IJR JDerb 03/06/18 11:47:49 PM
#42775   I have seen the 3sig strategy. What is Toofuzzy 03/06/18 10:25:32 PM
#42774   Hi Firebird, You are obviously doing great so SFSecurity 03/06/18 06:44:51 PM
#42773   Hi Ken, Re: Sandbox activity................. OldAIMGuy 03/06/18 04:00:33 PM
#42772   Hi Tom, Sliding... Firebird400 03/06/18 01:59:03 PM
#42771   Thanks Jon, Re: Winning and Losing.......... OldAIMGuy 03/06/18 01:36:25 PM
#42770   Hi Tom.. Jason Kelly had a great quote in JDerb 03/06/18 01:06:36 PM
#42769   Hi Tom Toofuzzy 03/06/18 12:04:57 AM
#42768   Hi JD, OldAIMGuy 03/05/18 04:37:41 PM
#42767   It certainly seems that way. I have a JDerb 03/05/18 04:29:04 PM