401(k) Savings Plans are great opportunities to build wealth, but they are not guaranteed pension programs and there are pitfalls. What if you are forced to retire at the bottom of a market cycle, or at a time of historically low interest rates?
The good news about the Internet is the information we can get our cursors on instantly; the bad news is the information we can get our heads around instantly, but without any way of gauging accuracy, relevance, or completeness.
Market Cycle Investment Management is a logical, reality-based, alternative to Modern Portfolio Theory (MPT) — a sexy, but totally speculative, mathematical monster that pretends to know the future. Its focus is on market value curve smoothing rather than on capital building and income generation.
How could anyone not be interested in Tax Free Yields of roughly 7%? On programs that have been in operation for nearly 20 years? And which are generally paying more now (after five years of historically low interest rates) than they did prior to the “financial crisis”?
A rally is a beautiful thing, particularly when the correction preceding it was embraced enthusiastically. This is the time to harvest your profits — pipe dreams of great wealth and inflated ego aside — jump on those profits before they erode before your disbelieving eyes. If you over think the environment or over cook the research, you’ll absolutely lose the profits.
Investment portfolios perform best over the long term when cost based asset allocation is used to keep the investment management decision maker (the investor) focused on specific targets.
Market Cycle Investment Management portfolios are different from any others you may be analyzing, and all investors analyze their portfolios most intently when their “bottom line” market values begin to crumble. This focus on market value is part of Wall Street’s Brainwashing of the American Investor.
Once upon a time, in the dark ages of income investing, there were no closed end income funds (CEFs) … whoa! When interest rates were expected to rise, the market prices of all “interest rate sensitive” securities fell — thus bringing their “effective yields” more in line with what “current” interest rates were expected to be
Unfortunately, I am not permitted by regulation to make this announcement, so please disregard it. Big brother does not think you know that: (1) all investment securities can and will fluctuate in price for many reasons, and that other professionals (and non professionals) may disagree with either the data or the conclusions that follow.
Stocks rallied for the fourth week in a row on positive economic data as both the S&P 500 and Dow Industrials hit new highs. For the week, the S&P 500 gained 2.07%, the Dow increased 1.56%, and the NASDAQ added 1.82%.