MCIM Portfolios UP on IGVSI and Income CEF Strength
Income CEF Prices Positive thru 1st Quarter; Yields Remain Above 6%
Issue Breadth, 52-Week Hi vs Low #'s, Weaken in March
Bargain Stock Monitor Shinks on Energy Sector Bounce
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.
Have You Taken 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 bond prices.
The IGVS Performance Analyzer applies exclusively to Market Cycle Investment Management Programs. It has four elements:
ONE: The IGVSI and S & P rose in February. See the Peak-Trough-Peak Chart. MCIM portfolios are 60% or less in equities and all the equities generate income.
MCIM portfolios were positive as a result of CEF income production and excellent trading opportunities in IGVSI equities.
TWO: The IGVS Bargain Monitor shrunk as energy sector prices rebounded.
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: Six consecutive years in positive territory... do I hear seven?
FOUR: IGVS New 52-Week High vs. New 52-Week Low Statistics: weakest 1st Q numbers since.
Negatives: The S & P broke below the IGVSI; Breadth is negative through 3 months; High vs. Low numbers least positive in SIX years; Fewer bargains, but still mainly in one sector...
Positives: Most #'s remain positive, but less so... we've been positive for six years. Is it sustainable?
Income CEFs rose in the first Quarter as did IGVSI stocks, yields have stabalized above 6% tax free & 7.5% taxable. Working Capital grew while Market Value inched forward from both base income and profit taking.
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, as buying opportunities are appearing in non-energy issues.
Monthly Statement Prognosis: Most portfolios (particularly income portfolios) will be higher in market value (in March) unless significant net withdrawals were made. 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.