The Market Cycle Investment Management (MCIM) Methodology

1
Submitted by The Investment Shadow | RSS Feed | Add Comment | Bookmark Me!

The Market Cycle Investment Management methodology is the sum of all the strategies, procedures, controls, and guidelines explained and illustrated within the pages of "The Brainwashing of the American Investor" --- the Greatest Investment Story Never Told.

Most investors, and many investment professionals, choose their securities, run their portfolios, and base their decisions on the emotional energy they pick up on the Internet, in media sound bytes, and through the product offerings of Wall Street institutional boiler rooms. They move cyclically from fear to greed and back again, most often gyrating in precisely the wrong direction, at or near precisely the wrong time.

The MCIM methodology combines risk minimization, asset allocation, equity trading, investment grade value stock investing, and base income generation in an environment whose time frame recognizes and embraces the reality of cycles. It attempts to take advantage of widespread "fear and greed" decision-making by others, using a disciplined, patient, and common sense process.

This methodology embraces the cyclical nature of markets, interest rates, and economies --- and the political, social, and natural events that can trigger changes in cyclical direction. Little weight is given either to the short-term movement of indices and averages, or to the idea that the calendar year is the playing field for the investment "game". 

Interestingly, the cycles themselves prove the irrelevance of calendar year analysis, and a little extra volatility throws Modern Portfolio Theory into a tailspin. What index or average comes even close in content to your unique portfolio of securities?

The MCIM methodology is not a market timing device in any sense of the word, but its disciplines will force managers to add equities during corrections and to take profits enthusiastically during rallies. As a natural (and planned) effect, equity bucket "smart cash" levels will increase during upward cycles, and decrease as buying opportunities increase during downward cycles. 


MCIM managers make no attempt to pick market bottoms or tops, and strict rules apply to both buying and selling disciplines. NOTE: these rules are covered in minute detail in "The Brainwashing of the American Investor" (click the banner above to the right. It leads to a PayPal purchase page, or contact Author Steve Selengut directly.)

Managing an MCIM portfolio requires disciplined attention to rules that are designed to minimize the risks of investing. Stocks are selected from a small, easy to manage, universe of Investment Grade Value Stocks. The companies are mostly large capitalization, multi-national, profitable, dividend paying, NYSE companies.

LIVE INTERVIEW - Investment Management expert Steve Selengut Discusses MCIM Strategies - LIVE INTERVIEW

Income securities are, for the most part, actively managed, closed-end funds, investing in corporate and government fixed income securities, income paying real estate, energy royalties, tax exempt securities, etc. Multi level, and speculation heavy funds are avoided, and most will have long term distribution histories.

No open end Mutual Funds, index derivatives, hedge funds, or futures betting mechanisms are allowed inside any MCIM portfolio.

All securities must generate some form of regular income to qualify for inclusion in portfolios, and no security is ever permitted to become too large of a holding. Diversification is a major concern on an industry, or sector, level, but global diversication is a given with IGVSI companies.

Risk Minimization, The Essence of Market Cycle Investment Management

Risk is compounded by ignorance, multiplied by gimmickry, and exacerbated by emotion. It is halved with education, ameliorated with cost-based asset allocation, and managed with disciplined: selection quality, diversification, and income rules--- The QDI.

Risk minimization requires the identification of what's inside a portfolio. Risk control requires decision-making by the owner of the investment assets. Risk management requires a selection process from a universe of securities that meet a known set of qualitative standards.

The Market Cycle Investment Management methodology helps to minimize your financial risk in several ways:

  • It creates an intellectual "fire wall" that precludes you from investing in excessively speculative products and processes.
  • It focuses your decision making with clear rules for security selection, purchase price criteria, and profit-taking guidelines.
  • Its cost based, Working Capital Model asset allocation operating system, assures you of constantly monitoring asset allocation while increasing your base income.
  • It helps assure that poor diversification will not creep into your portfolio and that unproductive assets will be eliminated in a rational manner.

CLICK HERE TO JOIN MY PRIVATE MAILING LIST


 
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.

CLICK HERE TO JOIN MY PRIVATE MAILING LIST



Associated Content:
November Market Stats Hint of Year End Window Dressing - What happens in the future is unpredictable, but understanding the past and how it impacts your uniq...
New 52-Week High #'s Best Since June - The New High and New Low issue stats can identify weaker and/or stronger sectors within the Investme...
Market Bubble Grows In Spite of Energy Sector Weakness - IGVSI breadth statistics signal changes in direction within Investment Grade Value Stocks only --- a...
Bargain Stock #'s Strengthen in Year End Window Dressing... ya think? - The fewer IGVSI equities at bargain prices, the stronger the market and the more Smart Cash that sho...
IGVSI Performance Whups S & P 500... Seven Years and Counting - The IGVSI is a barometer of a small but elite sector of the stock market called Investment Grade Val...
Produce More Than Enough (reliable) Income From Your Retirement Portfolios - This program explains the process within Market Cycle Investment Management retirement income portfo...
The Retirement Income Solution - What good is wealth without income? Your 401k program is NOT retirement ready... even the most popul...
THE DISMAL DECADE MY ASSTERISK- 11/30/99 THRU 12/31/2009 - This spreadsheet summarizes the manual analysis of 55 individual portfolios managed using WCM based ...
Investment Grade Value Stocks At Ten Year Lows (circa October 2008) - A cocktail of credit market laxatives is working its way into a constipated world economy. Relief is...
Manage Shock Market Corrections - Taking The Sting Away - The Brainwashing of The American Investor: The Book That Wall Street Does Not Want YOU To Read provi...

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.