MCIM Portfolios Feel Correction Sting... Working Capital Grows
Income CEF Yields Trump Equity "Total Return" Expectations
Market Stats Signal Weakness in Most Sectors
Bargain Stock Numbers Rise Dramatically; "Smart Cash" Falls
When equity prices "bubble", many investors sell their safer positions to jump into stocks at "ATH" prices... when bubbles burst, safer securities eventually 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.
The future is unpredictable, but understanding the past and how it impacts your portfolio, is essential to your long-run investment comfort --- and sanity. The Performance Expectation Analyzer has been developed for MCIM investors who want to better understand their monthly performance numbers.
No account statements present proper asset allocation information where there are income CEFs, REITs & MLPs; they also provide grossly inaccurate individual bond prices... call your congressman.
The IGVS Performance Analyzer applies exclusively to Market Cycle Investment Management Programs. It has four elements:
ONE: The IGVSI is 28% ahead of the S & P 500 over the past 8 years. (Contact me to view The Peak-Trough-Peak Chart); monthly income and realized gains have offset most income CEF price weakness thru August.
TWO: The IGVS Bargain Monitor includes most equity sectors, continuing its growing correction warning.
NOTE: The information provided here is not intended to be predictive 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: Negative through first 8 months... 1st time since 2008.
FOUR: IGVS New Highs vs. New Lows: totally negative 1st time since mid-2011... most sectors involved.
Negatives: All stats are trending "market negative".
Positives: NONE... are you ready for some opportunity!!!
Income CEFs prices are negative for 2015, yields have risen above 6.5% tax free & 8.0% taxable. Working Capital and "base income" continue to grow.
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 should continue to grow so long as withdrawals remain lower than the base income itself. Ya follow?
Equity "Smart Cash" levels are shrinking, as buying opportunities are appearing in non-energy issues.
Monthly Statement Prognosis: Most portfolios will be lower in market value through August as the correction broadensy; all are producing income at a higher rate than the "market" is growing.
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.