Our Latest Market Commentary
Finally… after the longest stretch since 2014, the S&P 500 managed to pull back over the course of the last couple weeks, to a point where the market became oversold and ripe for a “sale.” So what’s next?
Well, the seasonally weak months of the year ended on Halloween, starting the seasonally strong six months going into the end of 2017 and into the new year.
As you can see below, the concept of seasonality is extremely helpful when managing your retirement assets. $10,000 invested only during the seasonally weak months of the year has only grown to $11,092 in 67 years! On the other hand, that same $10,000 invested only during the seasonally strong months turned out an relatively larger return to say the least, at $986,871. read more…
As I write this week’s commentary, the Dow is finally “breathing” as it slides, on track for the biggest daily decline in two months. The long and intermediate-term charts still point to blue skies which tell me that any pullbacks that occur in the short term should be considered buying opportunities.
With that all said, it wouldn’t be prudent to ignore the obvious. I’ve already pointed out in previous columns that, while prices “reset” between 2015-16, we still haven’t seen a true, U.S. bear market crash since 2009. The average market crashes every seven years and the average crash wipes out roughly -42% of investors’ investable assets. Where we stand today, the market has continued upward for 8 ½ years with only three major corrections in the S&P 500: read more…
Last week I wrote about how ripe the market is for a pullback or correction. Click here if you’d like more details on that article, but this week I wanted to present more evidence that supports that thesis.
I mentioned that the stock market experiences roughly three pullbacks per year and that a “pullback” is defined as a -5% drop in value from the most recent high.
I found the chart below on Wall Street Journal’s MarketWatch and the numbers reflect data as of October 19th. So as of today (November 3rd, 2017), it has actually been 347 trading days, which represents more than 16 months, since the last -5% pullback! read more…