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IGVSI Bargain Stocks - Are There Any Left?

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The IGVSI Bargain Stock Monitor clearly reflects the strength of this ten-month-rallying stock market. In fact, the bargain monitor is sporting the best numbers ever recorded. No, this is not a "buy" signal.

The numbers are telling you that most Investment Grade Value Stocks are at or approaching their highest valuations of the past 52 weeks. Market Cycle Investment Management (MCIM) Program portfolios are approaching the all time high profit levels achieved in 2007, and only a handful of IGVSI equities are at "bargain" price levels--- i.e., down 20% or more from their 52-week highs.

Additionally, the most conservative MCIM portfolios have been achieving new all time highs regularly, for the past three or four months--- this because managed income closed end funds rose about 31% in market value during 2009.

So, with the very best numbers we've seen in two and a half years, why aren't you taking profits and positioning yourself to take advantage of the next market correction instead of (as usual) being victimized by it?

The Bargain Stock Monitor is reporting that a 52-week high has been achieved in Investment Grade Value Stock market values, but it is predicting nothing. What matters now is what you do with the paper profits that the past ten months' rally should certainly have provided for you.

If you have not taken profits, one or more of these things is happening:

* You are being greedy by ignoring Working Capital Model (WCM) profit taking guidelines.
* You do not have profit taking opportunities because you fearfully failed to take advantage of hysterically lower prices over the past two years.
* You don't have profit positions yet because you were unable to add to your portfolio significantly when prices were lower
* You don't want to be burdened with short-term capital gains.
* You think that this rally will last forever.

Yes, we are still in a rally, and the longer that we experience slow improvement in the more widely worshipped numbers, the less likely it is that the next correction will be as devastating as the last. But there absolutely will be another correction, and

There is no such thing as a bad profit!

For your information, the Bargain Stock Monitor is one of three market statistics used as performance expectation analyzers in Market Cycle Investment Management portfolios.

A "WCM friendly" watchlist program identifies specific IGVSI companies trading at least 20% below the 52-week high water mark, and that also meet the price selection criteria outlined in The Brainwashing of the American Investor: The Book that Wall Street does not want YOU to read.

The fewer IGVSI stocks at bargain prices, the stronger the market and the more "smart cash" that should be building up in investment portfolios. As the list of bargain stocks grows, portfolio smart cash should be finding its way back into undervalued securities.

The other numbers used for MCIM portfolio performance evaluation are: The Investment Grade Value Stock Index itself (The IGVSI), IGVSI Issue Breadth, and new 52-week High vs. new 52-week Low numbers.

Kiawah Golf Investment Seminars
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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

MCIM Self Directed 401k & IRA Programs

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


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 IGVSI companies, 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.

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. 

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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.