2014: IGVSI Equities up 43% vs. 2007 Highs; S & P 33%
Income CEF Prices 5% Higher; Yields Remain Above 6%
Issue Breadth, 52-Week Hi vs Low #'s, Less Impressive than 2013
Bargain Stock Monitor Stronger... Mainly Energy Issues
When equity prices "bubble", many investors sell their safer positions to jump into stocks at "ATH" prices... when bubbles burst, safer securities thrive.
No investor should be surprised by changes in market value on monthly account statements. Media noise throughout the month should prepare you for what's going on, as prices change constantly.
Have You Taken Your Profits?
The future is unpredictable, but understanding the past and how it impacts your portfolio, is essential to your long-run investment comfort --- and sanity. This Performance Expectation Analyzer has been developed for MCIM investors who want to understand their account statements better.
No account statements present proper asset allocation information where there are income CEFs --- they show them as common stock positions... they also provide grossly inaccurate bond prices.
The IGVS Performance Analyzer applies exclusively to Market Cycle Investment Management Programs. It has four elements:
ONE: The IGVSI established 25 new ATHs in 2014; the S & P, 53. See the Peak-Trough-Peak Chart. The S & P usually overtakes the IGVSI just before a correction... it did so in July.
MCIM portfolios typically sputter during extended rallies, as money runs from safer issues... IGVSI stock prices seem to be more "sticky" when corrections happen.
TWO: The IGVS Bargain Monitor grew slightly larger due to the slump in the energy sector.
NOTE: The information provided here is not intended to be a prediction of anything. It is most relevant for portfolios with at least 60% invested in Equities. Study The Brainwashing of the American Investor... you'll understand.
THREE: IGVS Issue Breadth Stats Sixth consecutive year in positive territory... history predicts a change.
FOUR: IGVS New 52-Week High vs. New 52-Week Low Statistics weakest since since 2011.
Negatives: The S & P is above the IGVSI; Breadth was less positive, High vs. Low numbers were weaker; Bargains are mainly in one sector...
Positives: Most #'s are, but not as positive... we've been positive for six years this March. Is it sustainable?
Income CEFs rose in 2014 while generous yields above 6% were maintained. Yearend "working capital" growth was in the 9% range. Base income growth continues.
Remember MCIMers: Working Capital and Base Income continue to grow with or without market value gains... is that cool, or what!
Even if the stock market plunges, both Working Capital & Base Income will (most likely and logically) continue to grow so long as withdrawals remain lower than the base income itself. Ya follow?
Equity "Smart Cash" levels are stable, as buying opportunities are narrowly focused in energy issues.
Monthly Statement Prognosis: Most portfolios (particularly income portfolios) will be higher in market value unless significant deposits were made.
SERIOUS NOTE: In all environments, always try to add more to your portfolio than you remove. Also, try to think of lower prices (in income CEFs for example) as opportunities instead of problems... that's what they have always proven to be.
Click here for more information --- from the only authorized MCIM investment managers on the planet.