IGVSI Equity Market Rally Re-Appears
Tax Free Income CEF Prices UP; Yields Remain High
MCIM Portfolios At or Near All Time Highs
Market Volatility Provides Trading Opportunities
When equity prices started to bubble, many investors sold their safer positions to jump into stocks at much too high prices --- were you with them? January was a warning shot accross the bow.
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 for accounts that include income CEFs --- they do not reflect the "purpose" of these securities.
The IGVS Performance Analyzer applies exclusively to Market Cycle Investment Management Programs. It has four elements:
ONE: The IGVSI established 60 new ATHs in 2013; S & P 44. See the Peak-Trough-Peak Chart. The S & P usually overtakes the IGVSI just before a correction... this nearly happened in Febbruary.
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 re-entered the rally zone this month; "smart cash" balances are on the rise.
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 rebounded in February --- strongest differential in seven months.
FOUR: IGVS New 52-Week High vs. New 52-Week Low Statistics are still scary high, but the weakest in eighteen months.
Negatives: And then (again) there were none, and that is predictaive of a correction... eventually.
Income CEFs moved sharply higher again in February, propelling many MCIM portfolios to "low risk" all time high levels.
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, around 7%. February statement values should be higher, as they were in January.
Working Capital and base income continue to grow with or without market value gains... is that cool, or what!
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" remains at near record levels, as the bargain shopping season remains slow in getting started.
Monthly Statement Prognosis: Most portfolios (particularly income portfolios) will show up-ticks in market values in February, 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.