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Latest Quarterly Report

April 7, 2021

 

REPORT FOR MARCH 31, 2021

IMS INCOME.  The IMS Income program gained 2.2% during the first quarter of 2021 as measured by the Initial Account posted at the website www.imsadvisor.com.  The gain compares to a 1.5% gain for the FastTrack All High-Yield average. 

IMS Income was fully invested in high-yield bond mutual funds on April 1.  The symbols of the funds held were SHOAX, FAHDX, WHIAX, FHYTX and TAHYX.  

During the first quarter the IMS Income program had a sell signal to the cash position and soon afterward a reversal to the fully invested position.  Favorable mutual fund selections helped to overcome any loss of opportunity that resulted from the temporary cash position.  IMS Income was able to outperform the FastTrack All High-Yield mutual fund average during the quarter.  

IMS GROWTH.  IMS Growth gained 3.2% during the first quarter as measured by the Initial Account posted at the website www.imsadvisor.com.  The gain compares to a 5.8% gain for the S&P 500 Stock Index. 

During the final two weeks of February and the first week of March the S&P 500 Stock Index declined over 4% and the Over-the-Counter market (OTC) declined nearly 10%.  These market disruptions triggered the protective parameters of the IMS Growth program and the cash position was as high as 40% of the portfolio.  By April 1, the cash position had been reduced to 15% of the portfolio. 

The Next Bear Market.  The recent infusion of trillions of dollars into the economy indicates that the current twelve-year bull market may last a while longer.  However, the infusion is in the form of debt, adding to the existing US debt overburden.  It is likely debt levels will play a significant role in the next few bear markets.   

How do IMS Growth and IMS Income fit in?   

Most investors have a balanced approach:  a portion invested in the stock market, and a portion invested in more conservative investments.  

IMS Growth has a defensive component designed to partially protect assets.  A recent example:  value was added in 2020 by cushioning the market decline related to COVID 19.   

IMS Income has a defensive component that mitigates the risk of high-yield bonds.  The program has been, in effect, a conservative investment that has provided unusually high returns for more than two decades.