Wednesday, July 22, 2020 12:00 PM EDT
Nasdaq ("déjà vu 2000 all over again") has been striking new ATHs, while the DJIA remains nearly 10% below its February high.
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PERSONAL BLOG
Neither stock market volatility, nor higher interest rate expectations, should have a negative impact on my retirement income.
To personalize your performance evaluation protocol, you just need to focus your attention on two, longer-range, objectives: Growing your productive "working capital", and Increasing your "base income".
Those of us who trade common stocks owe a debt of gratitude to the real volatility creators: the hundreds of thousands of derivative products that bring an entirely speculative kind of indirect supply and demand to the securities markets.
For your long term portfolio health, make sure that you take advantage of correction produced opportunities.... this time. It's been ten years since the last significant market correction.
There's no doubt that your long-term spendable income numbers will benefit from paying all IRA fees from a separate portfolio large enough to produce income in excess of the fees being withdrawn.
MCIM was 15 years old when the 50% "Black Monday" correction struck 10/19/87. The market "break" provided best buying opportunity since the great depression. Then as now, there's no need concern if you have "income immunity" to market value change.
In 1999, all high quality securities lagged, while speculators pushed technology sector prices into the stratosphere... sound familiar? NASDAQ today is up just 25% from March 2000 levels, 1.45% growth per year. What's propelling the market now?
What kind of strategy makes sense when all securities' prices are at their highest levels... ever!?
Time to re-read this July 11th article about strategies for riding the perfect market wave
Work Experience
| Owner, CEO | |
| Retirement Ready Income Portfolio | |
| May 2014 - Present (8 years 4 months) | |
|
Steve reviews portfolios for "retirement readiness", and when asked to do so, brings them into a position to produce more income than is required by the retiree. Note, that this is rarely possible unless the work is begun years in advance of the expected retirement date. |
| President/ Investment Manager | |
| Sanco Services, Inc. | |
| September 1979 - Present (43 years 6 months) | |
|
Steve manages individual investment portfolios for more than 120 individuals and businesses. He uses a Market Cycle Investment process that he developed nearly 40 years ago and that he's been refining ever since. Steve thinks in terms of market, interest rate, and economic cycles as opposed to calendar years, and focuses on the productivity of the assets in a portfolio, as opposed to day to day changes in their market values. |
Publications
| The Brainwashing of the American Investor: The Book That Wall Street Does Not Want You to Read! | |
| Steve Selengut | |
| W & A Publishing | |
| 06/20/2007 | |
|
"The Brainwashing of the American Investor" is an expose' of the conflicts of interest that plague Wall Street. From stock analysts to retail brokers, no cow is too sacred for this scathing and informative investigation of the Wall Street culture and the financial pros who dwell there. What you discover will give you a whole new understanding of investment product pitfalls, and a totally new, objective based perspective for designing, creating, and managing your personal investment portfolio. |
Latest Comments
Income Investing Fantasyland: High Dividend Equity ETFs And Mutual Funds
a few at the website....
Income Investing Fantasyland: High Dividend Equity ETFs And Mutual Funds
I've just set up a website for The Brainwashing of the American Investor. Please send this link to your friends, relatives, contacts, connections, and even virtual strangers. Buy a book for yourself, and I'll send an e-book to anyone you choose. https://wallstreetbrainwashingbook.com/ Thanks
Prevent Investment Mistakes: Ten Risk Minimizers
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Income Closed End Funds And Total Return Analysis
...lower stock prices are a cyclical fact of life, an opportunity to add to positions at lower prices. There need be no panic selling in high quality holdings, and no flight to 1% Treasuries from 6% tax free Munis... dividends and income keep rolling, providing income for retirees, college kids, and golf trips ---
How To Be Prepared For Rising Interest Rates
The purpose of income investments is the generation of income. You are not a bond trader... Control the quality selected, diversify properly, and compound that part of the income that you don't have to spend. Price is pretty much irrelevant; you can't pay the bills with market value.
One Person’s Bond Crash Is Another’s Income Opportunity
Yes, YOU can be the Master of this Universe!
Is Your Investment Portfolio Prepared For Higher Interest Rates?
Actually, the financial crisis was the only time that the CEFs "crashed" almost along with the stock market... they typically fall quite a bit less, get "discovered", and rise more quickly than the averages in the recovery.... Investment Grade Value Stocks also outperform the general market in terms of both drawdown and initial comeback.....
I use CEFs to DEVELOP an income program either as part of every portfolio or all of a retirement portfolio... a lower price most often (in my experience) is simply an opportunity to increase yield and decrease cost basis per share in one fell swoop.
Ironically, as a professional, I'm not permitted to give direct advice in a forum like this, or specifics...but as a general rule, it's best to treat income CEFs as income purpose securities regardless of what people think the "future" will bring.
The Investment Gods Are Furious
...lower stock prices are a cyclical fact of life, an opportunity to add to positions at lower prices. There need be no panic selling in high quality holdings, and no flight to 1% Treasuries from 6% tax free Munis... dividends and income keep rolling, providing income for retirees, college kids, and golf trips --- regardless of what the security market values are doing.
To Rollover 401k Plan Assets Or Not To… That Is The Question
Live Webinar video: www.dropbox.com/.../..._%20The%206_%20Solution.wmv
Retirement Income Investing: The Dreaded RMD
Income Investing webinars: www.dropbox.com/.../..._%20The%206_%20Solution.wmv