Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Risks to Global Economy is Balanced: Stock Market upside limited short term - 20th Jan 20
How Digital Technology is Changing the Sports Betting Industry - 20th Jan 20
Is CEOs Reputation Management Essential? All You Must Know - 20th Jan 20
APPLE (AAPL) AI Tech Stocks Investing 2020 - 20th Jan 20
FOMO or FOPA or Au? - 20th Jan 20
Stock Market SP500 Kitchin Cycle Review - 20th Jan 20
Why Intel i7-4790k Devils Canyon CPU is STILL GOOD in 2020! - 20th Jan 20
Stock Market Final Thrust Review - 19th Jan 20
Gold Trade Usage & Price Effect - 19th Jan 20
Stock Market Trend Forecast 2020 - Trend Analysis - Video - 19th Jan 20
Stock Trade-of-the-Week: Dorchester Minerals (DMLP) - 19th Jan 20
INTEL (INTC) Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 18th Jan 20
Gold Stocks Wavering - 18th Jan 20
Best Amazon iPhone Case Fits 6s, 7, 8 by Toovren Review - 18th Jan 20
1. GOOGLE (Alphabet) - Primary AI Tech Stock For Investing 2020 - 17th Jan 20
ERY Energy Bear Continues Basing Setup – Breakout Expected Near January 24th - 17th Jan 20
What Expiring Stock and Commodity Market Bubbles Look Like - 17th Jan 20
Platinum Breaks $1000 On Big Rally - What's Next Forecast - 17th Jan 20
Precious Metals Set to Keep Powering Ahead - 17th Jan 20
Stock Market and the US Presidential Election Cycle  - 16th Jan 20
Shifting Undercurrents In The US Stock Market - 16th Jan 20
America 2020 – YEAR OF LIVING DANGEROUSLY (PART TWO) - 16th Jan 20
Yes, China Is a Currency Manipulator – And the U.S. Banking System Is a Metals Manipulator - 16th Jan 20
MICROSOFT Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 15th Jan 20
Silver Traders Big Trend Analysis – Part II - 15th Jan 20
Silver Short-Term Pullback Before Acceleration Higher - 15th Jan 20
Gold Overall Outlook Is 'Strongly Bullish' - 15th Jan 20
AMD is Killing Intel - Best CPU's For 2020! Ryzen 3900x, 3950x, 3960x Budget, to High End Systems - 15th Jan 20
The Importance Of Keeping Invoices Up To Date - 15th Jan 20
Stock Market Elliott Wave Analysis 2020 - 14th Jan 20
Walmart Has Made a Genius Move to Beat Amazon - 14th Jan 20
Deep State 2020 – A Year Of Living Dangerously! - 14th Jan 20
The End of College Is Near - 14th Jan 20
AI Stocks Investing 2020 to Profit from the Machine Intelligence Mega-trend - Video - 14th Jan 20
Stock Market Final Thrust - 14th Jan 20
British Pound GBP Trend Forecast Review - 13th Jan 20
Trumpism Stock Market and the crisis in American social equality - 13th Jan 20
Silver Investors Big Trend Analysis for – Part I - 13th Jan 20
Craig Hemke Gold & Silver 2020 Prediction, Slams Biased Gold Naysayers - 13th Jan 20
AMAZON Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 11th Jan 20
Gold Price Reacting to Global Flash Points - 11th Jan 20
Land Rover Discovery Sport 2020 - What You Need to Know Before Buying - 11th Jan 20
Gold Buying Precarious - 11th Jan 20
The Crazy Stock Market Train to Bull Eternity - 11th Jan 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

The Market Cycle Investment Management (MCIM) Program

InvestorEducation / Learning to Invest Dec 29, 2009 - 11:49 AM GMT

By: Steve_Selengut

InvestorEducation

Best Financial Markets Analysis ArticleDuring 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 see how well Market Cycle Investment Management accounts fared during this interesting segment of financial history. Read "Brainwashing the American Investor" to appreciate the MCIM program--- in operation since 1970.

All investors should become familiar with Market Cycle Investment Management accounts and the strategies they employ to keep portfolios on track from start up to retirement. As a family evolves over time, separately managed, "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 managed portfolios, asset allocated as in Group Two, for taxable accounts.

Notes: (1) Group One and Two portfolios would be managed in accordance with The Working Capital Model, as documented profusely in the books and articles of Investment Manager Steve Selengut. (2) Group Three portfolios would be managed similarly; however, tax loss selling will be used annually to offset a significant portion of trading gains.

Reasonable 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.

Market Cycle Investment Management replaces the racetrack mentality that runs today's investment performance evaluation methodologies 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 has since 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 seminar, adopt the program, and smile.

By Steve Selengut
800-245-0494
KiawahGolfInvestmentSeminars.net
Professional Portfolio Management since 1979
Author of: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read", and "A Millionaire's Secret Investment Strategy"

Disclaimer : Anything presented here is simply the opinion of Steve Selengut and should not be construed as anything else. One of the fascinating things about investing is that there are so many differing approaches, theories, and strategies. We encourage you to do your homework.

Steve Selengut Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules