Well unfortunately the upturn we had witnessed that began the week before last, was short-lived. The curtain came down on Tuesday (9/13/22) along with a drop in the Dow Jones of 1,276 points! The S&P 500 dropped 177 points that same day.
The S&P 500 actually ended the week with a loss of 4.77%.
As many of you know, before my nightmare, I was a stockbroker, but additionally, I was a Registered Investment Advisor. As such, I managed my client’s money on a daily basis and did not charge commissions, only a yearly management fee. As an RIA I followed various indexes, charts, and geopolitical events worldwide, as well as the current state of various sectors of the economy.
For over 18 months I kept getting the urge to offer advice again, but this time through a newsletter and periodic updates. Investors could (can) subscribe to my site for an annual fee of $250.00 and get my opinions and the results of my following the ‘trend’ of the market, thereby allowing the subscriber to judge the merits of my analysis and updates and reposition their money as they see fit and on their own. If you would like to know what my opinions have been and analysis have shown, I invite you to read over my posts beginning August 21st, 2022.
Getting back to the present situation: the S&P 500 closed below 3,900 on Friday to 3,873 (9/16/22) thereby setting a new support level. In English this (in my opinion) portends a continued downward trend in the market. As I’ve stated previously, I will not be shocked to see the S&P 500 bottom out around 3,300 give or take. Doing the math, we would be looking at a loss from current numbers of at least another 17%.
Although some analysts are of the opinion that the markets will trade sideways for the next decade - somewhat similar to the 1970s and early 1980’s - there are still ways to capitalize on these movements if that does indeed happen, however, and my subscribers will know when my ‘numbers’ would call for such moves. No guarantees of course but they will be educated opinions from someone who was in the financial field for 30+ years.
We are nowhere near a “Panic Bottom” which will basically announce the end of the current Bear Market. A Panic Bottom BTW is where the average investor says “ENOUGH!”, throws in the towel, and cashes out after tremendous losses. It will come to this in my opinion, ladies, and gentlemen.
The alternative is to reposition your money into Money Market accounts and wait for a good buying opportunity based on analysis and not on “hope”.
