Hang On A Minute - The Mighty Dow Is Still 10% Below 2007 Levels!

Now that's a real headline, one with an element of truth. Yet Wall Street is celebrating this 5-year, 10% decline in market value, as a major event. At the same time, the much broader S & P 500 benchmark rests nearly 15% below 2007 all time high levels.

Do they think investors are stupid enough to get excited about this dismal performance? Particularly, when less than 20% of professionally managed equity funds did as well. And how about unmanaged ETFs? I haven't heard any claims of brilliance, have you?

At the same time, under the Wall Street Media's radar, the Investment Grade Value Stock Index (IGVSI) has overtaken its 2007 highest level twice, once in April 2011 and again on Friday, February 3rd. And here's a real "grabber" for you:

The WCMSI (Working Capital Model Select Income) Index of closed end (managed) income funds has outperformed both the DJIA and the S & P 500 since their 2007 highs! How embarrassing is that!

Now give this some serious thought:

What if you (a) only, ever, purchased Investment Grade Value Stocks (and only when their prices were at least 20% below 52-week highs), and (b) always, absolutely always, had at least 30% of your portfolio invested in closed end income funds (taxable and/or tax free)? Hmmmm.

Then in order to deal with market volatility (or the market cycle, however you wish to refer to the unpredictable movement of market prices), what if you religiously realized your profits each time an individual equity rose 10% and each time a CEFs gained the equivalent of a year's income? Hmmm.

Now project the past four years back in time through the last four decades --- and what have you got? Isn't it time to abandon modern portfolio theory theories and products and replace them with an Old Fashioned Market Cycle Investment Management methodology that seems to work cycle after cycle, decade after decade?

How many of you had transformed your profits into cash prior to the '87 crash and were fully reinvested during the October panic? Were you protected from the dot-com bubble by a disciplined aversion to IPOs, NASDAQ listed securities, and open end mutual funds? Market Cycle Investment Management(MCIM) users have their hands in the air.

Were you fully invested by March 9th, 2009 and 40%+ in "equity" cash by April 2011? MCIM users have their hands in the air.

Find out more about Market Cycle Investment Management at a free webinar on February 16th: http://kiawahgolfinvestmentseminars.net/Inv/index.cfm/18362

Professionals can obtain third party prepared performance data covering actual portfolios during this period by email to sanserve-at-aol-dot-com.

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