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Last Post: 5/18/2019 3:16:30 PM - Followers: 275 - 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%. 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
#43671   Thanks JD. OldAIMGuy 05/18/19 03:16:29 PM
#43670   VWave 2.01* JDerb 05/18/19 11:48:29 AM
#43669   Thanks JD, I'll have to take a closer OldAIMGuy 05/13/19 07:38:27 PM
#43668   Very similar to the NYSE Bullish percentage index. jdmagaw 05/13/19 10:35:34 AM
#43667   Tom, thanks a ton. This AUC89 05/12/19 02:26:13 PM
#43666   Re: Current v-Wave vs "old" i-Wave................. OldAIMGuy 05/12/19 02:01:49 PM
#43665   Will do. It is on my list of OldAIMGuy 05/12/19 12:17:39 PM
#43664   Tom, thanks ! That was very AUC89 05/12/19 12:12:33 PM
#43663   Hi 89, Re: v-Wave vs MRI................. OldAIMGuy 05/12/19 08:16:44 AM
#43662   Tom I have been following AIM and this board AUC89 05/11/19 11:58:44 AM
#43661   VWave 2.01* JDerb 05/11/19 11:44:08 AM
#43660   That's a nice example of AIM at work Adam 05/11/19 11:42:37 AM
#43659   Hi AS, I'll run some numbers and see OldAIMGuy 05/10/19 08:25:23 PM
#43658   Re: 10 years ago I built a portfolio... AIMStudent 05/10/19 06:35:06 PM
#43657   10 years ago I built a portfolio using OldAIMGuy 05/10/19 03:40:57 PM
#43656   Hi Tom Toofuzzy 05/08/19 04:25:06 PM
#43655   Hi Jan, OldAIMGuy 05/08/19 02:10:47 PM
#43654   Hi Toof, Re: AIM Settings................ OldAIMGuy 05/08/19 10:35:17 AM
#43653   That just shows that setting parameters to current Toofuzzy 05/08/19 08:26:41 AM
#43652   Hi AIMS, Most of my AIM programs are Adam 05/06/19 09:02:43 PM
#43651   Hi Allen, Re: Q&A on Zig Zag from 2002....... OldAIMGuy 05/05/19 04:24:41 PM
#43650   Hi Tom, I took a look at the SFSecurity 05/05/19 03:02:15 PM
#43649   Thanks Tom for 279368 AIMStudent 05/05/19 12:39:24 PM
#43648   Thanks Adam, I'd not seen your post when OldAIMGuy 05/05/19 11:09:44 AM
#43647   While out of date, this method works well: OldAIMGuy 05/05/19 11:08:44 AM
#43645   Zig-Zag Thanks Adam. What time frame (daily, weekly, AIMStudent 05/04/19 10:26:26 PM
#43644   Hi AIMS, A method that I and others Adam 05/04/19 12:10:45 PM
#43643   VWave 2.01* JDerb 05/04/19 11:32:37 AM
#43642   Hold Zone v. historic volatility of the underlying AIMStudent 05/03/19 03:54:33 PM
#43641   Thanks Adam. Understand expense ratios eat into AIMStudent 04/29/19 06:43:36 PM
#43640   Hi AIM Student, I've never used leveraged ETFs, Adam 04/29/19 01:18:05 PM
#43639   Hi AIMStudent ocroft 04/28/19 11:14:32 PM
#43638   Hi Tom.. I noticed that too and checked back JDerb 04/28/19 06:27:08 PM
#43637   Hi AIMS, Re: Rules............ OldAIMGuy 04/28/19 04:05:32 PM
#43636   Hi JD, Re: v-Wave............. OldAIMGuy 04/28/19 02:17:09 PM
#43635   Tom's Rules AIMStudent 04/27/19 01:09:31 PM
#43634   VWave 2.01* JDerb 04/27/19 12:36:45 PM
#43633   Hi Gang, I came across https://www.cefconnect.com/closed-end-funds-daily-pricing and it SFSecurity 04/27/19 12:43:59 AM
#43631   Hi AIMStudent, Thanks for you approval of how SFSecurity 04/24/19 06:32:56 PM
#43630   Wow SF, I salute your intestinal fortitude! AIMStudent 04/23/19 03:57:55 PM
#43629   Hi AIMStudent, We're all still learning how do SFSecurity 04/23/19 02:33:32 PM
#43628   Thanks for the chart. Toofuzzy 04/22/19 03:26:52 PM
#43627   Re: Potential Company Stocks for use with AIM................ OldAIMGuy 04/22/19 11:36:16 AM
#43626   Hi Allen, Re: Tracking my AIM investments.......... OldAIMGuy 04/22/19 10:47:02 AM
#43625   Here's the current v-Wave "Stocks" graph: OldAIMGuy 04/22/19 10:41:24 AM
#43624   Hi AIMS, OldAIMGuy 04/22/19 10:18:44 AM
#43623   Thanks JD, Re: v-Wave history............... OldAIMGuy 04/22/19 09:51:26 AM
#43622   Hi AIM Student AIM1979 04/21/19 07:47:17 PM
#43621   HI AIMStudent, CanRay 04/21/19 05:32:24 PM
#43620   Thanks Tom and SFSecurity. AIMStudent 04/21/19 12:15:59 PM