Portfolios and Investments

 

Portfolios:

• MarketCycle utilizes a unique and proprietary system that uses low volatility global diversified assets based on what part of the market cycle we are currently experiencing.
• Most positions are held for intermediate & long periods of time.
• Our forte is in monitoring for high risk periods and in knowing what assets to be invested in throughout the complete market cycle.
• We appropriately utilize global stocks, bonds, commodities, currencies, convertibles, preferred-shares, REITS, Trusts, ETFs and Closed-End-Funds (CEFs).  We hold lower risk assets and we never hold leveraged ETF products.
• Our stock exposure never exceeds 75%.  In an economic-recession (as in 2000 & 2008), our stock exposure can drop to as low as 20% (and in defensive sectors).

 

We maintain 5 PORTFOLIO types:

1. MINIMAL RISK with MINIMAL TAX:  Designed to capture roughly 50% of the up move of the stock market with almost none of the downside and with minimal capital gains taxes (which only come from occasional rebalancing).  It acts almost like a low cost annuity… without all of the ‘fine print’ investor traps and high fees (front and back-end).
2. INCOME:  Generates extremely high income while maintaining growth potential.   
3. CONSERVATIVE:  Lower risk and moderate growth potential.  Good for investors that can withstand some fluctuations in account value. 
4. MODERATE:  Moderate risk in exchange for higher growth potential.  Good for young investors with current employment income or for wealthier individuals with other available funds.  Most of my personal money is in this portfolio.
5.   SPECULATIVE:  Leveraged portfolio, but still contains some risk control.

 

The following chart is an example of the type of holding that MarketCycle uses during bull markets… we want smooth and steady, not wild and volatile.  This is an actual client portfolio position, however we cannot show the name for compliance reasons.  It is only shown up to the date of posting in January 2020, and shown merely as a sample.  High yield of 8.44% (plus it is a beneficial floating-rate), high trading volume, low P/E, very low-volatility as compared to the S&P-500 and it out-performed the market, gaining 100% in four years.  The pullback in late 2018 was less than half of what was experienced by the S&P-500.  As we so often say:  “The tortoise beats the hare.”