Shades of 2000: Opportunities exist in most "sectors"... S & P 500 down just 7% from All Time High Levels
Asset Management, Aerospace/Defense, Energy, Banks, Airlines, Utilities, Health Care, Personal Products, Agriculture, Chemicals, Paper, Retail, Heavy Construction, Lodging, Banking, Finance, Railroads, Textiles, Machinery & Equipment, Computer Systems
The Bargain Stock Monitor (contact me for the current numbers) is one of three market statistics used as performance expectation analyzers for MCIM Portfolios.
It is developed 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 "15% down" break-point allows you to keep your eye on "Bull Pen" items.
The fewer IGVSI equities at bargain prices, the stronger the market as "Smart Cash" accumulates in the equity bucket of your portfolio. As the list of bargain stocks grows (indicating market weakness), portfolio "Smart Cash" should be finding its way back into the market.
You should be using market volatility to capture all reasonable profits, particularly on high-priced issues.
Opportunities to put "Smart Cash" back to work have increased; move in slowly, just in case this "pause" turns into a seriously overdue correction.
When it does:
a) Stick with MCIM buying guidelines;
b) Put your "smart cash" back to work;
c) Jump on any remaining gains;
d) Buy slowly, sell quickly.
e) Buy more of issues that are down 30% or more and add to income positions.
ACTION ALERT: Continue to increase yields and reduce cost basis in the "income bucket".
The S & P is down just 7% from ATH levels, still far from a "correction"... nearly a third of the IGVSI universe is down 15% or more.
What's that all about? Check your copy of "Brainwashing" or contact an authorized Market Cycle Investment Management practitioner
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