Market Just Shy of ATH; Income Closed End Fund Rally Continues

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MCIM Portfolios up 5%+ in Q1 vs. 1%+ for S & P 500

Tax Free Income CEF Prices Hold Up; Yields Remain High

MCIM Portfolios At or Near All Time Highs

Market Volatility Provides Trading Opportunities

When equity prices started to bubble, many investors sold their safer positions to jump into stocks at much too high prices --- were you with them? January was a warning shot accross the portfolio bow.

No investor should be surprised by changes in market value on monthly account statements. Media noise throughout the month should prep you for what's going on, as prices change constantly.

Don't Let The Bad Guys Fuel Your Greed --- Always Take 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 for accounts that include income CEFs --- they do not reflect the "purpose" of these securities. 

The IGVS Performance Analyzer applies exclusively to Market Cycle Investment Management Programs. It has four elements:

ONE: The IGVSI established 60 new ATHs in 2013; S & P 44. See the Peak-Trough-Peak Chart. The S & P usually overtakes the IGVSI just before a correction... this nearly happened in March.

MCIM portfolios have performed better than the S & P over the long haul, but sputter during extended rallies... high smart cash levels, and lower income CEF prices are typical "topping out" symptoms.

TWO: The IGVS Bargain Monitor remained in the rally zone in March; "smart cash" balances were on the rise.

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. If you study The Brainwashing of the American Investor, you'll understand.

THREE: IGVS Issue Breadth Statistics weakened in March, but not significantly.

FOUR: IGVS New 52-Week High vs. New 52-Week Low Statistics are still scary high, but the 1st Quarter was the weakest in years.  

Negatives: And then (again) there were none, and that is predictaive of a correction... eventually.

Income CEF asset buckets moved slightly higher in March, propelling many MCIM portfolios to "low risk" all time high levels.

Positives: Still too positive for a flat economy --- with only part-time employment growing and increasing demands on business treasuries:

Income CEFs continue to pay steady income --- and boast very serious yields, around 7%.March statement values should be higher, as MCIM portfolios have risen 5 times the rate of the S & P.

Working Capital and base income continue to grow with or without market value gains... is that cool, or what! 

If the stock market plunges, both Working Capital & Base Income will continue to grow so long as withdrawals remain lower than the base income itself. Ya follow?

Equity "Smart Cash" remains at near record levels, as the bargain shopping season remains slow in getting started.

Monthly Statement Prognosis: Most portfolios (particularly income portfolios) will show up-ticks in market values in March, unless significant withdrawals 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.


 
Market Cycle Investment Management
3912 Betsy Kerrison Pkwy
Johns Island, SC 29455
Phone (800) 245-0494 • Fax (843) 243-8509
Contact Steve directly for additional information: 800-245-0494
Or Send Steve an Email

Please read this disclaimer:
Steve Selengut is registered as an investment adviser representative. His assessments and opinions are purely his own. None of the information presented here should be construed as an endorsement of any business entity; the information is only intended to be educational and thought provoking.

Click here to obtain a free copy of Steve's book, "The Book That Wall Street doesn't Want YOU to Read"

The Working Capital Model - Market Cycle Investment Management - FREE Mentoring Program

Professional Investor/Manager Steve Selengut, and an experienced panel of experts, walk you through the Market Cycle Investment Management (MCIM) portfolio management process. We'll hold your hand, answer your questions, and do everything we can short of security selection as you learn how to run your own (or your client's) portfolio.

The Mentoring Program is FREE, and includes:

  • The "Road To Success" Investment Training Program (minimum of 3 sessions)
  • The "Performance Investors Want & How to Get It" program (if applicable) 
  • The "Market Cycle Investment Management" program

The mentoring program is no longer private --- at least six people (all "Brainwashing" book owners) must attend each meeting.

Note:  Headsets will make the experience much more productive.

CLICK HERE TO JOIN MY PRIVATE MAILING LIST



Associated Content:
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Six Year $100K Portfolio Performance Numbers - The IGVSI is a barometer of a small but elite sector of the stock market called Investment Grade Val...
Market Breadth Positive Through First Quarter -- MCIM Portfolios Strong - IGVSI breadth statistics signal changes in direction within Investment Grade Value Stocks only --- a...
Market Lines and Numbers - - - Very Interesting - The S & P average has no quality safeguards, no profit-taking discipline, no income requirements or ...
A Stock Market Correction Is A Beautiful Thing - A correction is a beautiful thing, simply the flip side of a rally, big or small. Theoretically, eve...
Lemmings At Financial Cliff: Ten Do's and Don'ts - A rally is a beautiful thing, particularly when the correction preceding it was embraced enthusiasti...
Let's Make 401k Plans Behave More Like Retirement Plans - Although it is true that you do not pay taxes on your contributions during the earning years, you wi...
A Dismal Decade? No Way With Market Cycle Investing - Once again The Wizards attempted to debug the market cycle and create an upward only future for the ...
Year End Portfolio Window Dressing... Always Better To Look Smart, etc. - Perhaps ninety percent of the price movement in the equity markets is the result of institutional tr...
The Market Cycle Investment Management (MCIM) Methodology - The MCIM methodology combines risk minimization, asset allocation, equity trading, investment grade ...

Please read this disclaimer:
Steve Selengut is registered as an investment advisor representative. His assessments and opinions are purely his own and do not represent the views of any other entity. None of his commentary is or should be considered either investment advice or a solicitation of business. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be or should be construed as an endorsement of any entity or organization. The reader should not assume that any strategies, or investments mentioned are any more than illustrations --- they are never recommendations, and others will most certainly disagree with the thoughts presented in the article.