MCIM Portfolios Move Lower on Interest Rate Hike CEF Impact
Income CEF Prices Weaken in June; Yields Remain Attractive
Market Stats Show Weakness in Most Market 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 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 understand their account statements better.
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 33% ahead of the S & P 500 thru June (See the Peak-Trough-Peak Chart); monthly income and realized gains have offset most income purpose security price weakness.
TWO: The IGVS Bargain Monitor doubled, and represents most equity sectors, a 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 6 months... 1st time in six years.
FOUR: IGVS New 52-Week High vs. New 52-Week Low Statistics: weakest new high numbers since 2010... growing number of new lows throughout IGVSI universe.
Negatives: All stats are trending "market negative".
Positives: Only one positive (but much less so) number... 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 will (most likely and logically) continue to grow so long as withdrawals remain lower than the base income itself. Ya follow?
Equity "Smart Cash" levels are shrinking slowly, as buying opportunities are appearing in non-energy issues.
Monthly Statement Prognosis: Most portfolios (particularly income portfolios) will be lower in market value; nearly all should be ahead of "the market" thus far 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.
Click here for more information --- from the only authorized MCIM investment managers on the planet.