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Last Post: 1/20/2018 9:17:21 AM - Followers: 270 - 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

#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
#42590   If a house is a large chunk of ls7550 01/20/18 09:17:21 AM
#42589   Hi Under, I want to know where I Adam 01/19/18 09:53:33 PM
#42588   The problem with paying off your house and Undertrader 01/19/18 06:42:04 PM
#42587   Hi Clive Toofuzzy 01/19/18 12:53:43 PM
#42586   Hi Toofuzzy ls7550 01/19/18 10:19:08 AM
#42585   Hi UT. Good to see you're keeping well. ls7550 01/19/18 09:41:21 AM
#42584   Hi Under, There are two reasons that AIM Adam 01/17/18 11:49:09 PM
#42583   I agree with this. The only thing Undertrader 01/17/18 03:06:31 PM
#42582   I've been making a dividend killing in REITs. Undertrader 01/17/18 03:04:00 PM
#42581   Hi Tom Toofuzzy 01/17/18 10:27:55 AM
#42580   Hi Toof, Re: "too much cash...." OldAIMGuy 01/17/18 10:25:58 AM
#42579   Thanks Toof, Re: REIT taxation............. OldAIMGuy 01/17/18 10:18:40 AM
#42578   Tom Durring the years you were pulling cash out Toofuzzy 01/17/18 10:14:31 AM
#42577   Hi Tom Toofuzzy 01/17/18 10:11:19 AM
#42576   Hi Allen Toofuzzy 01/17/18 10:08:20 AM
#42575   Hi Allen, Re: Sell SAFE set to Zero............ OldAIMGuy 01/17/18 10:07:17 AM
#42574   Welcome Back UT, Re: REITs and your timing..... OldAIMGuy 01/17/18 09:38:46 AM
#42573   Hi Tom, Yep, AIM is wonderful in high SFSecurity 01/16/18 09:36:35 PM
#42572   Undertaker I don't think you realize that you NEVER Toofuzzy 01/16/18 09:02:37 PM
#42571   Oh yes, I totally get that. And Undertrader 01/16/18 02:51:49 PM
#42570   Undertrader We have been in a long term bull Toofuzzy 01/16/18 02:16:34 PM
#42569   Howdy everyone, I'm back after years of being Undertrader 01/16/18 01:31:26 PM
#42568   You are entirely welcome! OldAIMGuy 01/15/18 12:33:13 PM
#42567   Good Morning, Tom.. JDerb 01/15/18 10:48:15 AM
#42566   VWave for the Week of January 19th JDerb 01/15/18 10:27:33 AM
#42565   Hi Ken, Re: Thirty Years of AIMing.............. OldAIMGuy 01/14/18 02:39:35 PM
#42564   Hi Tom, Re: 30 Years, Firebird400 01/14/18 01:28:19 PM
#42563   It occurred to me while looking at the OldAIMGuy 01/13/18 11:03:20 AM
#42562   Hi Clive, karw 01/11/18 04:11:51 AM
#42561   22% 2MCL (2x FT250 UK midcaps (UK has ls7550 01/10/18 07:29:34 PM
#42560   The situation is not totally clear yet, some ls7550 01/10/18 07:10:59 PM
#42559   Hi Tom, Firebird400 01/10/18 08:13:02 AM
#42558   Hi Toofuzzy, Yep, one could do that and SFSecurity 01/09/18 08:45:37 PM
#42557   Hi Tom, karw 01/09/18 11:37:54 AM
#42556   Hi Ken, Re: Sandbox investing......... OldAIMGuy 01/09/18 10:05:58 AM
#42555   Hi K, Re: iAIM and iSkip............. OldAIMGuy 01/09/18 10:05:17 AM
#42554   Hi K, Re: UBA Results.......... OldAIMGuy 01/09/18 10:01:50 AM
#42553   2018 Sandbox, Firebird400 01/09/18 09:29:39 AM
#42552   Accumulation. karw 01/09/18 07:02:21 AM
#42551   UBA, Possibly the last UBA update in its current karw 01/09/18 06:28:27 AM
#42550   Hi Clive, karw 01/09/18 06:17:24 AM
#42549   VWave for the week of January 12th JDerb 01/08/18 11:44:07 AM
#42548   Hi Clive, Re: Golf Firebird400 01/08/18 08:32:39 AM
#42547   Thanks Clive. Commentary is much appreciated, too. OldAIMGuy 01/08/18 08:09:11 AM
#42546   I assume the blue line is the XIV+ ls7550 01/06/18 07:51:27 PM
#42545   Happy new year all. jaiml 01/06/18 09:16:01 AM
#42544   Hi Allen Toofuzzy 01/05/18 11:50:42 PM
#42543   Hi Bob, I suggest that you consider selling SFSecurity 01/05/18 07:52:18 PM
#42542   Allen & TooFuzzy, BowlerBob 01/04/18 10:47:38 PM
#42541   Hi Toofuzzy, I forgot to add that a SFSecurity 01/04/18 06:10:04 PM