Submitted by The Investment Shadow
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IGVSI Up 16% thru November; Twice the Gain in the S & P 500
NOTE: This website was created for "Brainwashing" book readers & MCIM users; absolutely nothing is being recommended or guaranteed.
The Investment Grade Value Stock Index (IGVSI) tracks an elite group of New York Stock Exchange equities; less than 320 companies meet IGVSI quality standards (S & P rated B+ or better, dividend paying, and historically profitable).
IGVSI UP 52% Since June 2007; S & P 42%
Nearly all Market Cycle Investment Management (MCIM) equities are selected from this limited universe; MCIM was developed by author/investor Steve Selengut in the early 1970s.
Comparing MCIM component indices with the S & P 500 over the long term confirms that quality based, balanced, portfolios typically fall more slowly in market value, bend less, and regain upward momentum more quickly than the S & P 500 average.
Because the MCIM operating system demands buying on weakness, old positions are increased and new positions are added while markets weaken. A disciplined MCIM user takes profits during rallies, in preparation for the next inevitable downturn --- it's SOP.
Using MCIM, investors can focus more on the new opportunities provided by corrections, while the income generated within their portfolios continues to grow as the market/interest rate cycle plays out.
Have YOU benefited from the 2016 Energy Sector rally? Has your income continued to grow? R U ready for whatever comes next?
Thus far this year, the IGVSI is up 15.5% vs. the S & P's 7.6%, while producing twice the income. Even after a three month decline, the WCMSI (Income CEFs) is up 4.1%. How do you think an MCIM 50% equity plus 50% income portfolio would be doing, considering the addition of a 6% annual cash flow and realized capital gains?
IGVSI stocks and income CEFs are the major components of MCIM portfolios, selected and managed in an environment that emphasizes the power of compound "Working Capital" and income growth... both are augmented by profit-taking at reasonable levels.
Mangers never lose sight of three "fundamental" investment principles: Selection Quality, 5% max Diversification, and Income from every position. No reasonable profit ever goes unrealized.
Assuming that the average MCIM portfolio has an asset allocation of roughly 50% IGVSI equities and 50% income closed end funds, it should be clear why this type of portfolio is more suitable for individuals seeking preservation of capital and income growth as their primary objectives. Note that preservation of capital and stability of market value are not one and the same.
Now sit back and imagine how an MCIM portfolio would have performed during the market cycles of your lifetime. What if you had bought only IGVSI equities and high quality income CEFs every time the market fell, panicked, or hic-cupped? And then, what if you had the courage to take your profits each and every time they reached a reasonable level on an individual issue basis?
Well that's exactly what could happen in portfolios managed using the MCIM methodology; not to mention the added benefit of a consistent and constanly growing monthly cash flow... the income allocation increases every few years to prepare for retirement.
Wouldn't it be nice to tell your children: "Don't you worry, market volatility, no matter how severe, is unlikely to have any impact on the growth of our retirement income... and your inheritance"
Embrace MCIM, and learn more about a "makes sence" approach to retirement readiness. Contact Steve for a free copy of the "Brainwashing" book, or to obtain more information about the process (email: sanserveataoldotcom).