IGVSI Equities up 33% vs. 2007 Highs; S & P 26%
Tax Free Income CEF Prices Fall; Yields Remain High
Issue Breadth #'s Worst Since October 2008
Market Volatility Provides 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 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 12 new ATHs in 2014; the S & P, 27. 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 more than doubled in July; "smart cash" balances getting back to work.
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 turned sharply south (larger #s mean south)in July.
FOUR: IGVS New 52-Week High vs. New 52-Week Low Statistics are still scary high, but the 1st seven months were the weakest in recent years.
Negatives: Issue Breadth was totally a downer, other numbers weakeded...
Income CEF asset buckets moved lower lower in July, but many MCIM portfolios attained new "low risk" all time high levels mid-month. Some profit-taking in CEFs!!!
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... July statement market values will be lower; 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!
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" is lower than it has been in some time, as the list of "Bargain Stocks" and Bullpen items grows.
Monthly Statement Prognosis: Most portfolios (particularly income portfolios) will be lower in market values in July, particularly if 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.