IGVSI Equity Market Rally Continues Through April @ 5x the S 'n P
Income CEFs Yields Hold Above 6% as Prices Stabilize
MCIM Balanced Model Crushes S & P 500 5-Year Performance
When equity prices start to bubble, NSB (not so bright) investors tend to sell their safer positions to jump into stocks at much too high prices --- don't be that person. "The correction is coming! The correction is coming!" The only ? is when...
No investor should be surprised by the changes in market value that appear on his or her monthly account statements. Media noise throughout the month should lead to a feel for what's been going on --- prices, are constantly changing, but Wall Street media hype never does.
Don't Let The Bad Guys Fuel Your Greed --- 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.
Unfortunately, there isn't one Account Statement anywhere that presents proper asset allocation information for accounts that include income CEFs --- they just don't get it, or care about the "purpose" of your securities.
The IGVS Performance Analyzer applies exclusively to Market Cycle Investment Management Programs. It has four elements:
ONE: The IGVSI has established 32 new ATHs in 2013 vs. just five for the S & P 500. See the "new" Peak-Trough-Peak Chart. The probability of a correction in equities is growing.
The S & P was in the red for over 5 years, and is barely ahead of where it was 14 years ago --- MCIM portfolios should have performed better and should be at or near highest market values ever...
TWO: The IGVS Bargain Monitor is in the danger zone --- buying opportunities barely exist --- historically, a clear signal of an impending correction. Your equity "bucket" should show higher values and higher cash positions.
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 have been impressive since May 2011 --- a market value booster for your MCIM portfolios, as well as a correction warning message.
FOUR: IGVS New 52-Week High vs. New 52-Week Low Statistics remain unsustainably positive, scary even.
Negatives: Negatives are nowhere to be seen, but the bubbly strength of the numbers themselves are sounding a warning more than a cheer. Beware the irrational exuberance of a rally sparked mainly by less "bad news" as opposed to even a glimmer of good (economic) news.
Positives: Certainly enough positive numbers to get Wall Street excited, while the safer, income CEF sector, shows some evidence of a flight to speculation in other markets. You should be smiling, and cashing in on all "winners" --- particularly the slower movers.
Income CEFs continue to pay steady income --- and the tax free variety are yielding above 6%. Take your one year equivalent profits; reinvest immediately. Income CEFs have regained some of what they lost at year end.
Working Capital and Market Value numbers should still be growing, while base income production remains strong. BUT, most importantly, even if the stock market correction begins tomorrow, MCIM base income will continue to grow so long as investor withdrawals remain lower than the base income itself. Ya follow?
Equity "Smart Cash" remains at near record levels, as profit taking opportunities trump bargain shopping --- not so tough to take, eh? Enjoy it while it lasts, a correction may be on the way.
Monthly Statement Prognosis: Equity-heavy portfolio market values will be higher --- income focus portfolios may be slightly higher as well. There is absolutely no reason to think that economic conditions will not improve over the long run, and still every reason to add to portfolios whenever prices fall into the "buy zone" --- that's the only known way to meaningfully increase your Working Capital.
SERIOUS NOTE: In all environments, always try to add more to your portfolio than you remove.
Click here for more information --- from the only authorized MCIM investment managers on the planet.
(c) 2013 by Kiawah Golf Investment Seminars