MCIM Market Values Benefit from Energy Sector & Income CEF Surges
Tax Free Income CEF Yields Fall...Prices At 52-week Highs
MCIM Profit Taking Activity Surges While S & P Malaise Enters Month Twelve
Bargain Stocks Tough to Find; Profit Opps Not So Much
When equity prices "bubble", many investors sell their safer positions to jump into stocks at "ATH" prices... when bubbles burst, safer securities start to 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.
NOTE: that no account statements present proper asset allocation information where there are income CEFs, REITs & MLPs; they also provide grossly inaccurate individual bond prices.
The IGVS Performance Analyzer applies exclusively to Market Cycle Investment Management Programs. It has four elements:
ONE: The IGVSI is 24% ahead of the S & P 500 over the past 9 years. (see the Peak-Trough-Peak Chart); monthly income, the CEF rally, and realized gains more than offset stock market weakness thus far in 2016.
TWO: The IGVS Bargain Monitor has shriveled up in recent weeks; few bargains remain in the IGVSI Universe.
NOTE: The information provided here is not 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 most of 2015, showed renewed rally signs in both March and April.
FOUR: IGVSI New Highs vs. New Lows: turned positive in April, as a result of stronger oil prices
Negatives: None, for MCIM portfolios, other than the duration of market weakness.
Positives: Recent strength in Energy issues and the surge in income CEFs
Long Term... only the shadow knows... we're through eleven months of a slow moving, shallow, correction, down just 3% from the latest high; about 13% above the February 11th low.
Income CEFs prices are positive thus far in 2016... tax free much moreso than taxable: yields remain around 5.5% tax free, and above 7.5%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 grew again by month end, as buying opps become scarce.
Monthly Statement Prognosis: Most "income" portfolio values are at new ATHs and all portfolios continue to produce outstanding income.
BIG BUT: Income CEFs will continue to cut payouts so long as the government holds interest rates at historically low levels. Strategically, it's time to make sure you are not spending more than 70% of what you are earning.
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).