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Published:November 10th, 2012 22:37 EST
3 Major Market Disasters of Our Lifetime

3 Major Market Disasters of Our Lifetime

By Steve Selengut

One investment management methodology has proven since 1970 that it is the solution to the parade of doomed-to-fail Wall Street theories and the products they spawn. No bull: Market Cycle Investment Management (using the Working Capital Model operating system) has safely navigated all three of the major market disasters of our lifetimes --- and all the minor gyrations and volatility in between, as a matter of discipline and process.

This is a realty based approach that minimizes investment risk the old fashioned way with quality securities only, classical diversification rules, and income generation from all areas. Rallies and corrections are prepared for logically, and appreciated for the opportunities they each provide. There are no "alphas" to seek, "betas" to check up on, or correlation coefficients to speculate about ...

and yet, performance is superior to the benchmarks with significantly less risk, no mutual funds or passive panaceas of any kind --- just an active portfolio management style that has worked for decades.

Asset Allocation is simplified by the use of only two "purpose orientated" classes of securities, and a "smart cash" element that is automatically directed to one or the other based upon "working capital" guidelines instead of market timing or prediction techniques. No reasonable profit is ever left "unrealized".

Equity securities are selected from a universe of roughly 400 of the most successful, dividend-paying, companies on the planet; income is generated by a diversified array of taxable and tax free managed portfolios --- portfolios whose income was maintained throughout the financial crisis, and which continue to produce at levels multiples higher than what investors think are safely available.

Investment Grade Value Stocks (IGVSI) for growth; managed Closed End Funds (CEFs) for both taxable and tax free income. How easy is that.

Every individually managed (and "mirror" portfolio) has a minimum 30% income allocation and a maximum 5% individual security diversification limit --- no two individual portfolios are precisely alike, and all can be used for retirement income generation.

Yes, we`ve implemented the "Back To The Future" game plan, but we do it in advance by understanding Stock Market, Interest Rate, and Economic Cycles. We don`t worry about down markets, we take advantage of them; we don`t count our unrealized market value winnings during rallies, we park them in "smart cash" until new opportunities arrive.

And you know that this truth is unequivocal: no rally/correction in history has failed to succumb to the next correction/rally.

How would you have fared if you were cash rich in September 1987 and fully invested by the end of October? What if, in the time leading up to the dot-com bubble, your credo was: no NASDAQ, no Mutual Funds, no IPOs/ Investment Grade Value Stocks only?

Yes, we can provide professionals with 3rd party prepared performance details; yes we can refer you to real live people who have prospered though the "87 Crash, the Dot-Com Bubble, the Financial Crisis and Dismal Decade --- we can even give investment pros recent data using the Modern Portfolio Theory analytics they have become comfortable with in recent years.

But whatever way you slice it, analyze it, regulate it, pooh-pooh it, deny it, rationalize it , or argue that it`s just too simple --- MCIM is the real deal and we`ve got the numbers to prove it.

Look through the informational websites, study the methodology, read "The Brainwashing of the American Investor: The Book that Wall Street Really Doesn`t Want You to Read" book, interview the players, chat with the investors --- become a part of the greatest financial story never told.