The stock market was down an astounding 5% this week!! In one week! Last week saw the market dropped 4.7%. In just two weeks the S&P500 has lost @10%!
As someone whose career in the financial field spanned over 30 years, I feel comfortable saying this downtrend is not over.
There are a great number of indicators that I refer to when offering these opinions but every once in a while, there is more clarity in making a forecast due to their coinciding. The Consumer Price Index, Corporate Insiders, and other market internals are among them.
The case for a continued downward projection of the market is, to me, very clear.
Additionally, we only need to listen to Federal Reserve Chairman Jerome Powell who has indicated that this past rise in the Federal Fund rate of ¾ % is not the last. The markets are in what’s known as a ‘swoon’ due to Powell’s signaling that rate hikes are far from over – up to and through the upcoming recession! This is truly amazing.
For the past several years, we have been in a ‘seller’s market. It seemed that homes were being bid on with the starting price the actual asking price.
Due to rising interest rates, we are now entering a ‘buyer’s market. 30-year fixed rates are going to continue to rise.
Perhaps you have been following my opinions on these posts since August 21st. Had you transferred into Money Market accounts the next day (8/22/22) you have kept approximately 13% of your money? This is how much the S&P 500 has fallen since that date!
A Panic Bottom - which will signal the end of this current downward trend in the market - will happen when investors have had enough and just throw in the towel. We are not near that yet.
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.