Retirement Ready Income Programs

New 52-Week Highs Swamp Lows Since Trump Victory; Eighteen Days and Counting

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

Another useful tool for analyzing an index of your selection universe is a comparison between the number of issues establishing new 52-week high ground vs. those sinking to new 52-week lows. The longer the numbers are overwhelmingly positive, the more likely it is that a correction is approaching.

Superficial analysis is very straight forward --- there should be more new highs in an upward trending market and more new lows during a correction. Typically, New Highs vs. New Lows is the last market statistic to weaken...

  • Unfortunately, we will be unable to provide IGVSI only numbers going forward, but you can obtain related information at Barchart.com.

The New High and New Low issue stats from BarChart.com should be used in conjunction with the IGVSI daily watchlist to identify weaker and/or stronger sectors within the selection universe --- very important in helping investors determine where the bargains are and where the profit taking opportunities should be.

Remember to be quick on your profit-taking feet, using the two 7's beats one 10 "Brainwashing Book" strategy.  

The correction was extremely shallow... and may be back sooner than you expect... here's hoping you took advantage of the excellent trading opportunities available during the past 16 months.

Mutual Fund and ETF Retirees Take Note: The income you are receiving IS STILL NOT BEING PRODUCED by your product holdings... you are still selling "units" and "shares" to pay your bills.

Your "Total Return" is positive, BUT the lack of realized income is still your primary problem.

What's this all about? Check your copy of "Brainwashing" or contact Steve at the number below or at: sanserveataoldotcom

Next Statistic Stop: The Investment Grade Value Stock Expectation Analyzer

      Please join my Linked In network                Please join my private mailing list


 
Retirement Ready Income Programs
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 join the private article mailing list.

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.

Please join the private article mailing list or Call 800-245-0494 for additional information

Risk Management: Income, 401k, and IRA Programs

Take a free tour of a professional investment managers' private SEP IRA program during ten years surrounding the financial crisis:

CLICK HERE

In developing the investment plan, personal financial goals, objectives, time frames, and future income requirements should all be considered. A first step would be to assure that small portfolios (under $50,000) are at least 50% income focused.

At the $100,000 level, between 30% and 40% income focused is fine, but above age 50, the income focus allocation needs to be no less than 40%... and it could increase in 10% increments every five years.

The "Income Bucket" of the Asset Allocation is itself a portfolio risk minimization tool, and when combined with an "Equity Bucket" that includes only Investment Grade Value Stocks, it becomes a very powerful risk regulator over the life of the portfolio.

Other Risk Minimizers include: "Working Capital Model" based Asset Allocation, fundamental quality based selection criteria, diversification and income production rules, and profit taking guidelines for all securities,

Dealing with changes in the Investment Environment productively involves a market/interest rate/economic cycle appreciation, as has evolved in the Market Cycle Investment Management (MCIM) methodology. Investors must formulate realistic expectations about investment securities--- by class and by type. This will help them deal more effectively with short term events, disruptions and dislocations.

Over the past twenty years, the market has transitioned into a "passive", more products than ever before, environment on the equity side...  while income purpose investing has actually become much easier in the right vehicles. MCIM relies on income closed end funds to power our programs.

To illustrate just how powerful the combination of highest quality equities plus long term closed end funds has been during this time... we have provided an audio PowerPoint that illustrates the development of a Self Directed IRA portfolio from 2004 through 2014.

Throughout the years surrounding the "Financial Crisis", Annual income nearly tripled from $8,400 to $23,400 and Working Capital grew 80% $198,000 to $356,000.

Total income is 6.5% of capital and more than covers the RMD.

https://www.dropbox.com/s/b4i8b5nnq3hafaq/2015-02-24%2011.30%20Income%20Investing_%20The%206_%20Solution.wmv?dl=0

Managing income purpose securities requires price volatility understanding and disciplined income reinvestment protocals. "Total realized return" (emphasis on the realized) and compound earnings growth are the key elements. All forms of income secuities are liquid when dealt with in Closed End Funds. 



Associated Content:
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...
Retirement Ready Income Investing: What's In Your Wallet? - What good is wealth without income? Your 401k program is NOT retirement ready... even the most popul...
Purpose Based Asset Allocation: The Working Capital Model - Asset Allocation is an Investment Planning Tool, not an Investment Strategy. WCM facilitates long te...
The Working Capital Model - Market Cycle Investment Management - Mentoring Progr - Professional Investor/Manager Steve Selengut walks you through the Market Cycle Investment Managemen...
The Greatest Investment Story Never Told - An excellent strategy even in today's investing environment. The current buzz on the street is that ...
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 ...
Stock Market Explodes After Trump Victory; Income CEFs Only Remaining Bargain - What happens in the future is unpredictable, but understanding the past and how it impacts your uniq...
Stock Market Issue Breadth Strong Since Trump Victory - IGVSI breadth statistics signal changes in direction within Investment Grade Value Stocks only --- a...
Market Rally Resumes; Trump Election Excites the Stock Market - The fewer IGVSI equities at bargain prices, the stronger the market and the more Smart Cash that sho...
The Investment Grade Value Stock Index - Continued - The IGVSI was developed in December of 2007 to provide a benchmark for the Equity portion of MCIM po...

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.