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”.
As I’ve written in past posts, I believe this will happen when the S&P 500 falls to approximately 3,300. Friday’s close (9/23/22) was 3,693. Based on this analysis we have perhaps another 11% drop yet to go.
Let’s face it – bad news sells. Although there has been a lot of ‘doom and gloom’ in my posts, there will come a day when it will be time to jump back into the market. I will be thrilled to inform you when.
HOWEVER……this will be my last free post here on Facebook.
Beginning Saturday (October 1st, 2022) my market opinions and analysis will be available for $250.00/year. “Is it worth it?” you might ask.
Well, if we look at my published post of 8/21/22 ( and ensuing ones as well) I had called for a steep downturn in the market suggesting that investors switch to Money Markets.
My post that day referenced the Dow Jones at 33,706. Friday (9/23/22) it closed at 29,590 – down 4,116! The S&P 500 referenced on the post of 8/21/22 was at 4228. Friday (9/23/22) it closed at 3693 – down 535!
A $10,000.00 value on 8/21/22 is now valued at approximately $8,700.00 had you not transferred into a Money Market at that time.
If you currently own IRAs, 401Ks, 403Bs, or ROTH IRAs, it would be wise to stay informed to protect and preserve your future. Stay tuned to learn how to take advantage of this offer……………….
Although the opinions and analysis put forth on Market Watch. Gane Wisdom can assist anyone in compiling economic data in order to manage their money, this subscription is best suited to those who own retirement funds or tax-deferred investments due to the possible tax consequences through capital gains.
I no longer offer individual money management however by taking into consideration various market analyses and insights such as those offered through Market Watch. Gane Wisdom can help someone effectively manage and plan for their future.