What Are Market Cycle Investment Management Life Cycle Portfolios?

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The Market Cycle Investment Management (MCIM) methodology was developed in the 1970s by private investor Steve Selengut. The process combines risk minimization, base income generation, and disciplined trading strategies while focusing on the highest quality companies, in terms of fundamentals.

If you speak MPT, these Investment Grade Value Stocks are generally "low beta" securities.

MCIM concepts, strategies, and processes are explained and illustrated in Mr. Selengut's books and articles. The three "Life Cycle" portfolios were specifically designed for use in retirement-destined savings/investment programs.

As the investor ages, it's a simple matter to transition from a more agressive "max-70%" equity asset allocation to a more conservative 50% equity exposure. As retirement looms larger on the horizon (and for the first few years of investing) the "max 20% equity" asset allocation may be most suitable.

For more information, Google "Market Cycle Investment Management" and "Investment Grade Value Stock Index, or search the article archive at Kiawah Golf Investment Seminars.

Reasonable Performance Expectations using the MCIM "Life Cycle" Program

Regardless of direction, all cyclical movements should be excellent investment opportunities for retirement focused investors. MCIM "Life Cycle" portfolios befriend market, economic, and interest rate cycles using volatility friendly strategies that logically could produce:

Moves to cash before corrections take over from stock market rallies: Profit taking disciplines kick in as securities rise 7% to 10% above their cost basis. At the same time, buying guidelines preclude purchase of IGVSI equities that are not down at least 20% from their 52-week highs. These disciplines produce high equity allocation "Smart Cash" levels during significant rallies.

Higher market value "lows" during corrections: Portfolios include a "base Income" floor produced by a) an allocation of at least 30% of "Working Capital Assets" to income purpose securities, b) additional income from all equity securities in the portfolios, and c) the likelihood that both income CEFs and Investment Grade Value Stocks will fall less in market value and rebound more quickly than securities of lesser fundamental quality. 

Peak to Trough to Peak Analysis Around the Financial Crisis

Annual growth of realized "base income" in all portfolios: Cost based asset allocation dictates that at lease 30%, 50%, or 80% of all realized income will be reinvested as soon as practical in income-purpose securities

Faster movement to new market value highs when the market moves upward because: (a) Fewer new positions can be established until significant  (20%) equity price erosion has occurred, making the manager more patient, (b) programmed additional income assures cash availability for security purchase throughout corrections, and (c) a selling discipline that makes the manager take smaller than target profits so long as buying opportunities are plentiful.

No major disappearing "unrealized" profits because of strict profit-taking rules and manager discipline. 

Reduction of analysis paralysis, appreciation of both rallies and corrections, and love of market volatility.

The past fifteen years have included two major market cycles and one significant economic crisis. Study the methodology to see how well the MCIM "Life Cycle" approach might just have worked for you and your clients during this interesting segment of financial history.

Peak to Trough to Peak Analysis From Before the Financial Crisis 'Till Now

"Life Cycle" portfolios take the "what to do now" product shopping confusion out of inexperienced hands and focuses decision-making responsibility squarely on the manager. We do not follow the crowd. Investors can expect our managers to buy only the best quality companies, and only when they are at clearly defined "bargain" prices.

Our managers always take profits when targets are reached and remain focused on the all important task of growing retirement income for future use by participants. We have no other agenda. 

All investors should become familiar with the Market Cycle Investment Management methodology and the strategies it employs to keep portfolios on the right track from start up into retirement.

All three "Life Cycle" portfolios are available at or before retirement in individual 401(k) and rollover IRA portfolios under a private management ageement.

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Market Cycle Investment Management
3912 Betsy Kerrison Pkwy
Johns Island, SC 29455
Phone (800) 245-0494 • Fax (843) 243-8509
Contact Steve directly for additional information: 800-245-0494

Please read this disclaimer:
Steve Selengut is registered as an investment adviser representative. His assessments and opinions are purely his own. None of the information presented here should be construed as an endorsement of any business entity; the information is only intended to be educational and thought provoking.

The Working Capital Model - Market Cycle Investment Management - FREE Mentoring Program

Professional Investor/Manager Steve Selengut, and an experienced panel of experts, walk you through the Market Cycle Investment Management (MCIM) portfolio management process. We'll hold your hand, answer your questions, and do everything we can short of security selection as you learn how to run your own (or your client's) portfolio.

The Mentoring Program is FREE, and includes:

  • The "Road To Success" Investment Training Program (minimum of 3 sessions)
  • The "Performance Investors Want & How to Get It" program (if applicable) 
  • The "Market Cycle Investment Management" program

The mentoring program is no longer private --- at least six people (all "Brainwashing" book owners) must attend each meeting.

Note:  Headsets will make the experience much more productive.


Associated Content:
IGVSI Stats Whisper Correction; Lower Quality Issues Fueling Bubble (as usual) - What happens in the future is unpredictable, but understanding the past and how it impacts your uniq...
New 52-Week High Numbers Continue Decline; New Lows Being Hit in ALL Sectors - The New High and New Low issue stats can identify weaker and/or stronger sectors within the Investme...
The Correction is Coming! The Correction is Coming! - IGVSI breadth statistics signal changes in direction within Investment Grade Value Stocks only --- a...
Bargain Stock Choices Surge as Correction Broadens - The fewer IGVSI equities at bargain prices, the stronger the market and the more Smart Cash that sho...
Investment Grade Value Stock Index - The Nuts & Bolts of MCIM - The IGVSI is a barometer of a small but elite sector of the stock market called Investment Grade Val...
A Preemptive, Timeless, Portfolio Protection Strategy - Both Market Cycle Investment Management and The Working Capital Model were nearly ten years old when...
Crisis Investing: Are YOU Ready? - Why are investors afraid (shocked, confused, overwhelmed, angry) about stock market corrections? Her...
Crisis Investing - The Three-Pronged MCIM Strategy - Unfortunately, investors in general are a lot like teenagers. They know everything immediately; expe...
How Do You Spell Correction? (circa when? tell me and win a prize) - Repetition is good for the brain's CPU, so forgive me for reinforcing what I've said in the face of ...
A Stock Market Correction Is A Beautiful Thing - A correction is a beautiful thing, simply the flip side of a rally, big or small. Theoretically, eve...

Please read this disclaimer:
Steve Selengut is registered as an investment advisor representative. His assessments and opinions are purely his own and do not represent the views of any other entity. None of his commentary is or should be considered either investment advice or a solicitation of business. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be or should be construed as an endorsement of any entity or organization. The reader should not assume that any strategies, or investments mentioned are any more than illustrations --- they are never recommendations, and others will most certainly disagree with the thoughts presented in the article.