MCIM Portfolio Values Benefit from Energy Sector & Income CEF Surges
Income CEF Yields Fall as Prices Rebound Over 3%
MCIM Profit Taking Activity Explodes; S & P Struggles to 1% Annual Gain
Bargain Stock Numbers Shrink but NONE, (nadda) In Energy Sector
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.
The future is unpredictable, but developing reasonable portfolio expectations 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 9% ahead of the S & P 500 over the past 8 years. (see the Peak-Trough-Peak Chart); monthly income and realized gains have more than offset income CEF price weakness thru October.
TWO: The IGVS Bargain Monitor shrunk in both September and October reflecting strength in the Energy and Utility sectors.
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 9 months, and barely positive now, are the weakest since the Financial Crisis.
FOUR: IGVS New Highs vs. New Lows: totally negative from July thru September, rallied strong in October... annual levels weakest in 8 years.
Negatives: All stats are trending "market negative" in spite of the huge October rally
Positives: Short Term yes; Long Term... only the shadow knows.
Income CEFs prices are still negative for 2015, but now less than their annual dividend production: yields remain around 6% tax free & 8% 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!
YES, even if the stock market plunges, Working Capital & Base Income should continue to grow so long as withdrawals remain lower than income.
Equity "Smart Cash" levels are shrinking, as buying opportunities are appearing in non-energy issues.
Monthly Statement Prognosis: Most portfolio values will be much higher in October; all continue to produce more income the "market" is growing in 2015.
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.
For more information, call 800-245-0494 or e-mail Steve (sanserveataoldotcom).