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Last Post: 9/18/2018 1:52:40 PM - Followers: 273 - 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
#43241   Hi Gang, I've finished the book, "How A SFSecurity 09/18/18 01:52:40 PM
#43240   Hi Jeff, Re: Long Term Options and AIM........... OldAIMGuy 09/17/18 06:06:09 PM
#43239   Tom, I remember that visit in San Antonio AIMLEAPS 09/17/18 05:26:06 PM
#43238   VWave for the Week of September 21st JDerb 09/17/18 11:06:28 AM
#43237   Good morning Karen, Re: What to do with OldAIMGuy 09/17/18 09:29:35 AM
#43236   AIM Exit or transfer strategy? karenseek 09/15/18 08:24:46 PM
#43234   Hi Adam Toofuzzy 09/15/18 04:16:53 AM
#43233   Hi Gang, The book that was mentioned recently, SFSecurity 09/14/18 10:34:08 PM
#43232   Hi S2011, Re Greg Meyer............... OldAIMGuy 09/14/18 09:16:57 PM
#43231   Hello, I am trying to locate an author Stetson2011 09/14/18 06:49:00 PM
#43230   Hi Ray, Several years ago I was reading Adam 09/14/18 06:19:48 PM
#43229   Hi Tom. Re options and AIM. CanRay 09/11/18 09:19:03 PM
#43228   Three buildings attacked. OldAIMGuy 09/11/18 02:32:57 PM
#43227   Yes, I agree. The more diversified the portfolio, OldAIMGuy 09/11/18 01:33:08 PM
#43226   Hi Allen, Re: v-Wave suggested cash levels.............. OldAIMGuy 09/11/18 11:52:57 AM
#43225   Thanks. Regarding did you notice its data bar1080 09/11/18 10:39:32 AM
#43224   Hi SF Toofuzzy 09/11/18 02:14:10 AM
#43223   Hi Toofuzzy, I guess that at my age SFSecurity 09/10/18 08:30:35 PM
#43222   Hi Tom, In calculating the V-Wave I see SFSecurity 09/10/18 07:34:12 PM
#43221   Hi Toofuzzy, CanRay 09/10/18 07:30:28 PM
#43220   I recently ran across zero duration bond funds Toofuzzy 09/10/18 05:14:48 PM
#43219   Hi SF Toofuzzy 09/10/18 04:59:54 PM
#43218   VWave for the Week of September 14th JDerb 09/10/18 11:20:52 AM
#43217   Hi bar1080, Most excellent post. If you use SFSecurity 09/09/18 09:56:15 PM
#43216   Here's the most telling investing graphic ever. Although bar1080 09/09/18 03:31:47 PM
#43215   Hi B_ten_eighty, Re: indexed Exchange traded funds................ OldAIMGuy 09/09/18 02:43:18 PM
#43214   "The core of my portfolio is now in bar1080 09/08/18 04:05:03 PM
#43213   Thanks bar1080 for the link. Certainly worth reading. SFSecurity 09/08/18 02:25:37 PM
#43212   You should be aware of which takes bar1080 09/08/18 11:47:45 AM
#43211   Hi Toofuzzy, Thanks for the pointer to the SFSecurity 09/07/18 06:34:44 PM
#43210   Hi Ray, It's a bit complicated but basically SFSecurity 09/07/18 06:29:44 PM
#43209   Buy today in SCHE emerging market etf adding Adam 09/07/18 03:55:19 PM
#43208   Reason to let Aim accumulate cash Toofuzzy 09/07/18 10:36:38 AM
#43207   On Tuesday I Added 7% to my shares Toofuzzy 09/07/18 10:13:22 AM
#43206   Hi canray Toofuzzy 09/06/18 08:46:41 PM
#43205   Hi Ray, Re: Options and AIM.............. OldAIMGuy 09/06/18 04:16:26 PM
#43204   Hi Allen, CanRay 09/06/18 02:28:18 PM
#43203   It's funny how one can miss seeing something SFSecurity 09/03/18 10:16:14 PM
#43202   Hey, Toofuzzy and the rest of you, In SFSecurity 09/03/18 07:23:56 PM
#43201   Thanks, Adam, for the reference to the book, SFSecurity 09/03/18 06:58:56 PM
#43200   VWave for the Week of September 7th JDerb 09/03/18 12:49:19 PM
#43199   Hi Allen, I don't do anything fancy, in Adam 09/01/18 02:05:21 PM
#43198   Hi Adam and Steve Toofuzzy 08/31/18 06:14:04 PM
#43197   Hi Adam, You pointed out the one of SFSecurity 08/31/18 02:12:54 PM
#43196   Hi Toof, I'm one of the ones who Adam 08/31/18 01:39:17 PM
#43195   Hi SF Toofuzzy 08/31/18 12:10:44 AM
#43194   Actually, Toofuzzy, relying solely on AIM could get SFSecurity 08/30/18 11:26:01 PM
#43193   Re risk indicators Toofuzzy 08/29/18 05:15:06 PM
#43192   Hi Allen, Re: Market Risk data and how OldAIMGuy 08/29/18 09:39:41 AM
#43191   Hi Tom, What are the four risk indicators SFSecurity 08/28/18 09:58:20 PM