Market Ends June Near ATH; Income Closed End Fund Rally Stumbles

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 MCIM Portfolios up roughly 9%+ thru Q2 vs. 6%+ for S & P 500

Tax Free Income CEF Prices Flat; Yields Remain High

MCIM Portfolios At or Near All Time Highs

Market Volatility Provides Frequent Trading Opportunities

When equity prices "bubble", many investors sell their safer positions to jump into stocks at "ATH" prices --- are you one of them? The rally is still alive, but how well?

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 where there are income CEFs --- they show them as common stock positions... they also provide grossly inaccurate small lot bond prices.

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

ONE: The IGVSI has established 11 new ATHs in 2014; the S & P, 23. See the Peak-Trough-Peak Chart. The S & P usually overtakes the IGVSI just before a correction... this nearly happened in June.

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 June; "smart cash" balances grew.

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 strengthened slightly again in June.

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

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

Income CEF asset bucketswere slightly lower in June, but many MCIM portfolios attained new "low risk" all time high levels. Many have experienced profit-takings in their CEF portfolios!!!

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... June statement market values and base income levels should be higher.

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

That is correct, 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" is lower than it has been in some time, as defensive REITs and MLPs remain reasonably priced.

Monthly Statement Prognosis: Most portfolios (particularly income portfolios) will show up-ticks in market values in June, 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

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.


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.

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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.