Tag: base incomeSort
Investment Grade Value Stock Index (IGVSI) Soars 24%
Investment Performance Evaluation Re-Evaluated: Part Two
The Working Capital Model looks at investment performance differently, less emotionally, and without much concern for short-term market value movements. Security market values are used for buy/sell decision-making. Working capital figures are used for asset allocation and diversification calculations.
Crash! The 2007 thru 2008 financial crisis halved 401(k), IRA, and Mutual Fund values in a matter of months. For many, retirement dates had to be pushed back; for others, new jobs had to be found. The tragic flaw? No income allocation in the investment program. Market value builds egos; income pays the bills.