We would like to reiterate the structure of the portfolio, the risk management techniques we incorporate, and how we are currently positioned. Our portfolio is comprised of high quality dividend paying stocks, with currently some inverse ETF’s to protect the portfolio. Our goal over a full market cycle is to earn on average a 5% to 10% annual return, without having any major declines in principal. Our definition of a major decline is 10% or more. How we think of our returns is that a large portion comes from the hefty dividend yield, some inflation protection from owning primarily equities, and some additional returns from being opportunistic with our investments.

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PVG – Equity Income Monthly Update (November 2014)