The article describes a different way to think about your investments and investing portfolio than many of us are used to. Perhaps after yesterdays and todays market activity you might want to give it the benefit of your time.
"Throughout history, investments have been described in terms of the “income” they produce. It is an investment’s income generating capacity that drives both its economic value and, ultimately, its market price, not the other way around. But a huge, competitive money management industry requires simple yardsticks for firms to use in showcasing and comparing their investment performance. Thus, market price appreciation and “growth” have become paramount, even though they are less important to individual investors for whom the size of their income stream is more meaningful than whatever price “Mr. Market” assigns to the source of that income. Fortunately, retail investors do not have to fall for the drumbeat message from the financial media and professional investment community that market price appreciation is the quintessential goal. We developed the Income Factory as an alternative that allows investors to focus on building and capturing the economic value of their portfolios, irrespective of whatever price Mr. Market chooses to assign to them from one day to the next."The Income Factory's 'Intellectual Underpinnings' (Why 'Income' Drives 'Market Value')