MCIM Strategies Produce Better Retirement Income

Submitted by The Investment Shadow | RSS Feed | Add Comment | Bookmark Me!

The Market Cycle Investment Management (MCIM) methodology was developed in the 1970s. 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 "The Brainwashing of the American Investor" and in hundreds of investment articles. MCIM portfolios, with their income growing foundation, are especially well designed for use in retirement savings (IRA) and investment (Self Directed 401k) programs.

As the investor ages, it's a simple matter to transition from a more aggressive "max-60%" equity asset allocation to a more conservative 50% or 40% equity exposure. As retirement looms larger on the horizon (and for the first few years of investing) a "zero % equity" 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 Program

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

ONE: Moves to cash before corrections take over from stock market rallies: Profit taking disciplines kick in as securities rise 7% to 10% above cost basis. At the same time, buying guidelines preclude purchase of equities before they are down at least 20% from 52-week highs. These disciplines produce high equity allocation "Smart Cash" levels during significant rallies.

TWO: Higher market value "lows" during corrections: MCIM Portfolios include a "base Income" floor produced by a) an allocation of at least 40% to income purpose securities, b) additional income from all equity securities in the portfolio, 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

THREE: Annual growth of realized "base income": Cost based asset allocation dictates that from 40% to 100% of all realized income will be reinvested as soon as practical in income-purpose securities

FOUR: Faster movement to new market value highs during the next rally because: a) Fewer new equity positions may be established until a minimum 20% price erosion has occurred, making the manager more patient, b) programmed additional income assures cash availability for security purchase throughout corrections, and c) a flexible selling discipline that allows the manager to take smaller than target profits when buying opportunities are plentiful.

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

SIX: 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 approach might have worked for most investors during this interesting segment of financial history.

Peak - Trough - Peak Analysis From Before the Financial Crisis 'Till 7/31/15

Market Cycle Investment Management takes the "what to do now" product shopping confusion out of inexperienced hands and focuses decision-making responsibility squarely on the manager. Investors can expect MCIM managers to buy only the best quality companies, and only when they are at clearly defined "bargain" prices.

Also, MCIM managers always take profits when targets are reached and are trained to remain focused on growing retirement income for future use by the investor.  

The Market Cycle Investment Management, "cost based asset allocation" methodology keeps portfolios on a high quality, growth and income, track from start up through retirement, without head scratching or rebalancing. The approach is best suited for use in tax deferred, self directed 401(k) and IRA portfolios.

Tax Free/Tax Advantaged portfolio management is equally benefited from MCIM disciplines.

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 - Mentoring Program

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

The Mentoring Program includes:

  • The "Brainwashing" Book or E-Book
  • A preliminary portfolio review and retirement ready planning session
  • One hour of conversation per month.

The mentoring program is private

Headsets will make any on-line meeting experience much more productive.


Associated Content:
Risk Management: Income, 401k, and IRA Programs - Sooner or later, every investment program (particularly your IRA and 401k) becomes a Retirement Inco...
Investment Grade Value Stocks - Quality Is Job One - How much financial bloodshed is necessary before we realize that there is no safe and easy shortcut ...
What Your Mother Never Told You About Income Investing: Twenty Questions (1 thru - Investors are a very dependent group of people, particularly now that most employed persons have bee...
Managing the Income Portfolio 101 - The reason people assume the risks of investing in the first place is the prospect of achieving a hi...
Crisis Investing: Are YOU Ready? - Why are investors afraid (shocked, confused, overwhelmed, angry) about stock market corrections? Her...
Asset Allocation Based Performance Analysis - One - It matters not what lines, numbers, indices, or gurus you worship, you just can't know where the sto...
A Must Read For Experienced And Novice Investors: 29 5-Star Reviews - A must read because you're in it! The book goes into depth on how to choose a diverse group of quali...
Who's Afraid of Higher Interest Rates? - A rising interest rate environment is super good news for investors. When we loan money to someone, ...
WCM Investing - The Process (December 2008) - Most people enter the investment process tip first. They hear something, grab an idea from a popular...
The Working Capital Model - Market Cycle Investment Management - Mentoring Progr - Professional Investor/Manager Steve Selengut walks you through the Market Cycle Investment Managemen...

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.