IGVSI Equities up 38% vs. 2007 Highs; S & P 32%
Tax Free Income CEF Prices Fall; Yields Move Higher
Issue Breadth & 52-Week HI vs Low #'s Weakest In Years
Market Volatility Providing Frequent Trading Opportunities
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 prep you for what's going on, as prices change constantly.
Did You 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 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 has established 12 new ATHs in 2014; the S & P, 34. See the Peak-Trough-Peak Chart. The S & P usually overtakes the IGVSI just before a correction... it did so in July.
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 doubled in September,"smart cash" balances moved lower.
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 weakened significantly in September.
FOUR: IGVS New 52-Week High vs. New 52-Week Low Statistics worsened significantly, the 1st nine months were the weakest in recent years.
Negatives: The S & P is above the IGVSI; Breadth and High vs. Low numbers are weaker; Bargain Stock List is longer.
Income CEF asset buckets moved Pimco lower in September, while yields rose on new purchases, and portfolios overall..
Positives: Zero, None, Nadda... early stage of a correction statistics.
Income CEFs continue to pay steady income --- and boast very serious yields... September statement market values will be lowe; base income and working capital level higher.
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 remain high, ready for correction based opportunities.
Monthly Statement Prognosis: Most portfolios (particularly income portfolios) will be lower 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.