Average IGVSI Equity Bargains Under Ten... 1st Year Ever!
The Bargain Stock Monitor is one of three market statistics used as performance expectation analyzers for Market Cycle Investment Management Portfolios. It is derived from the Month End Value Stock Watchlist screening program and identifies Investment Grade Value Stocks trading at least 15% below their 52-week high.
Candidates must also meet the price selection criteria outlined in The Brainwashing Of The American Investor: The Book That Wall Street Does Not Want YOU To Read.
The "15% down" break-point allows you to keep your eye on "Bull Pen" items. (You really need to be familiar with the selection rules to get the most from the Bargain Stock Monitor and from the Watch List program.)
The fewer IGVSI equities at bargain prices, the stronger the market and the more Smart Cash that should be accumulating in the equity bucket of your portfolio. As the list of bargain Investment Grade Value Stocks grows (indicating market weakness), portfolio Smart Cash should be finding its way back into undervalued securities.
The Monitor clearly documents the cyclical nature of the stock market, as you can tell from the historical data. Whenever the number of IGVSI bargain stocks shrinks to unusually low levels, a correction cannot be too far down the road. Patience is your "buzz word", as smart cash grows and "Equity Bucket" market values establish new all time highs (ATH).
Your "Smart Cash" balance should have risen again in November
If you are following "the MCIM rules" properly, you should be using market volatility to capture all reasonable profits, particularly on high-priced issues.
Opportunities to put "Smart Cash" back to work are sporadic --- but you should be able to buy something most days. Continue to sell too soon.
If you have not been taking profits recently, one of these things is happening:
a) You are being greedy, and ignoring MCIM profit taking guidelines;
b) You have had no profits because you refuse to buy equities during corrections;
c) You foolishly avoid short-term capital gains, preferring to watch them disappear;
d) You think this rally is the one that lasts forever. It isn't.
ACTION ALERT: If the rally continues, don't doubt the wisdom of profit-taking. In the income bucket, continue to increase yields and reduce cost basis on existing positions.
Take any profit at all on your weaker and older equity holdings.
What's that all about? Check your copy of "Brainwashing" or contact an authorized Market Cycle Investment Management practitioner
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