IGVSI Rally Continues – Profit Taking Opportunities Take the Spotlight! The Market Cycle Investment Management model has outperformed the popular investment indices since it was first developed in 1970. It features an approach that embraces market volatility; selects securities using strict quality, diversification, and income standards; and operates under strict disciplines for asset allocation, buying [...]
Investors will likely breathe a sigh of relief when international regulators reach an agreement on bank capital requirements this weekend. Early reports suggest the required levels of capital will be much lower than feared, and the kinds of assets that can be used to meet the requirements more expansive than earlier proposals suggested. But there [...]
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.
Why do we jump through all of these “prevent-defense” hoops? Because we just don’t know how or have the patience to design and manage a classic, safer, plain vanilla, stocks and bonds portfolio. The market cycle is the favorite son of the investment gods. You either make it your friend or fail as an investor!
Over the past 30 years Federal Tax receipts (Corporate, Personal, Estate, Excise, Gift, Social Security, Medicare, Medicaid, et al) have averaged less than 20% of Gross Domestic Product (GDP). Read that again, and don’t think for a minute that it’s not a large number. Why isn’t that enough?
Unlike conventional mutual funds, CEFs do not issue and redeem shares directly with investors at net asset value. CEFs are listed on national securities exchanges, where shares of the Investment Company are purchased and sold in transactions with other investors, just like individual company stocks, and most often not at net asset value.
Big publishers want to sell already big names; discovering new ones is not in their wheelhouse. Are they responsible for the problems in the financial markets? Of course not, but they do have a perverse, if indirect, impact. By constantly publishing the same Wall Street friendly message, they contribute to the brainwashing.
The Stock Market is a dynamic place where investors can consistently make reasonable returns on their capital if they comply with the basic principles of the endeavor AND if they don’t measure their progress too frequently with irrelevant measuring devices
A correction is a beautiful thing, simply the flip side of a rally, big or small. Theoretically, even technically I’m told, corrections adjust equity prices to their actual value or support levels. In reality, it’s much easier than that. Here’s a list of ten things to think about doing, or to avoid doing, during corrections of any magnitude:
Dow industrials recoup some after near 1,000-point plunge By Kate Gibson, MarketWatch NEW YORK (MarketWatch) — U.S. stocks caved on Thursday, with the Dow industrials making a comeback of sorts from a drop of nearly 1,000 points, as Europe’s financial troubles took hold on Wall Street. At its height, the major stock indexes were all [...]