Submitted by Steve Selengut
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The Market Cycle Investment Management (MCIM) Program
During the past sixty years, most economic, market, and interest rate cycles have lasted from two to five years, peak-to-peak. Rarely have any of the cycle-tracking market indices moved in tandem, and none of the cycles are considered to be particularly predictable.
Individual securities (the stuff that indices are made of) complicate things significantly by having even less predictable cycles of their own. This generally uncertain atmosphere is the very nature of the financial markets. If investors could come to grips with the non-calendar, cyclical, nature of markets, it is likely that they could improve their investment performance considerably.
In spite of decades of irrefutable evidence to the contrary, Wall Street has convinced most investors and far too many financial professionals that the calendar year is somehow investment relevant. Simple, yes; tax-code friendly, perhaps; but investment realistic--- not.
Too many experts have abandoned the financial world's fascinating cyclical undulations for the simplicity of the planet's annual orbit around the sun. It's time for a change in direction--- one that doesn't ignore the realities of the investment markets. It's time to get back on our "hogs", and ride!
Regardless of direction, all cyclical movements have proven to be excellent investment opportunities for Market Cycle Investment Management (MCIM) navigators. The MCIM Program uses a time-proven methodology that befriends market and interest rate cycles by using strategies that most often should produce:
* Higher market value lows during market downturns.
* Moves to cash before corrections take over from rallies.
* Maintenance of planned income during financial crises.
* Faster movement to new market value highs.
* Steady growth in "working capital" in all market environments.
* Annual growth of realized "base income" in all portfolios.
* No major disappearing (unrealized) profits.
* Much better than average peak-to-peak market value numbers.
* Auto pilot maintenance of asset allocation structure.
* Reduction of analysis paralysis, appreciation of both rallies and corrections, and love of market volatility.
The past twelve years have included two major market cycles and one significant economic crisis. Email me to discuss how Market Cycle Investment Management model accounts would have fared during this interesting segment of financial history. Read "The Brainwashing the American Investor" to find out why.
All investors can become familiar with Market Cycle Investment Management investing and the strategies employed to keep portfolios on track from start up to retirement. As time moves on, "life cycle" friendly portfolios will become necessary. For example:
Group One -Taxable income and Investment Grade Value Stock (IGVSI) portfolios for tax deferred accounts
* 70% IGVSI Equities and 30% Taxable CEFs
* 50% IGVSI Equities and 50% Taxable CEFs
* 30% IGVSI Equities and 70% Taxable CEFs
Group Two - Tax free income and Investment Grade Value Stock (IGVSI) portfolios for taxable accounts
* 70% IGVSI Equities and 30% Tax Free CEFs
* 50% IGVSI Equities and 50% Tax Free CEFs
* 30% IGVSI Equities and 70% Tax Free CEFs
Group Three - Tax manage these portfolios --- if you are obsessed with such things.
All MCIM type portfolios should be managed in accordance with The Working Capital Model.
Reasonable MCIM portfolio expectations: (1) Portfolios should lose less market value during market corrections and recover to new highs more quickly. (2) Profit taking during rallies, regular cash flow, and strict stock purchase rules should produce quicker recoveries. (3) Income production from equities, combined with a significant income securities bucket, assure annual increases in "base income" levels.
A Market Cycle Investment Management approach to portfolio management replaces the racetrack mentality that runs today's investment performance evaluation techniques with a calmer, more cerebral, strategy.
By looking at things cyclically, and analytically, instead of celestially and emotionally, we allow our strategy to prove itself over a reasonable period of time--- as it logically must have done since it was developed in 1970.
If the investment strategy makes sense in the long run, why knock yourself out in months, quarters, and years? Pick the MCIM program or programs that suit you best today and let them work you through the cycles the investment gods are preparing for your future.
Attend a free seminar, adopt the program, and smile.
Market Cycle Investment Management
2971 Maritime Forest Drive
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.
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|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.