The “Special” Weekly Update 3/13/2026™

Here We Go Again; PURE FEAR

This will count as only the third “Special Update” I have ever sent!  Each of the two sent prior to this one, which you can read them in the links below, offered a rare investment opportunity.

No one knows the future, including me, yet it has been my experience that once the two charts below hit where they now rest, it turned out to be a wonderful point to invest.  So, here at The Wealth Strategies Group, we will start moving some of your cash reserves to a longer-term investment home. 

Below the following two charts, is what I have now named “The Nate G. Story”!  It is timely again today and educational, as always!  Enjoy and most of all no need to fear!

In just a touch over three years from now, we will look back on this from the year 2030!  My gut suggests our piggy bank values will be higher than today.

The Volatility Index as of 3/09/2026

On April 7, 2025, I sent you a "Special Update" email of The Weekly Update (Read it here). I titled that update "Pure Fear". In that update I linked a story from the first of only two "Special Updates" I have ever sent. (Read it Here 12-27-2018)

Here it is again, as timing is pretty good.

I will make this brief, as I am a slow typist! In the 1980's it was normal for people in my business to make sales calls to people we didn't know, i.e. cold calls. I always thought it was a good idea to call people at home during the time of a big sports event, like the night I cold called Nate G. (I can't use his last name for privacy rules) during the World Series.

In our call Nate told me he only invested in blue chip stocks, and he only bought when he could "smell fear in the air"!

I asked Nate what that meant, and he said give me your name, phone and address and "I will come to your office someday when I smell it!"

One day in October 1987, the receptionist let me know I had a visitor up front who wanted to meet me. Keep in mind I was associated with a big-time fancy Wall Street firm on 17th Street in Denver at that time. As I entered the reception area, there was one person standing in the middle of the room. It was a man in his mid-50's with a long ponytail, girl watcher wrap-around sunglasses, blue jeans with a few holes, a white tee shirt that was a little too tight and the boots he was wearing were some of the gnarliest work boots I have ever seen.

As I entered the room, he lifted his sunglasses to the top of his head and he said "Jim, I am Nate G., you called me about investing a long time ago and I am ready to invest today."

I told Nate I remembered the call and that in my gut knew I would meet him someday. We went to my office and Nate had his check book and a list of about 20 companies he wanted to invest in. Of course, the markets had been in turmoil and so I reminded Nate of his comment to me about "smelling fear in the air". Was today the day? And, as he had promised me, I wanted to hear how he thought fear smelled!

Nate closed my door and started telling me about the FEAR index, or VIX as we call it. The VIX is a ticker symbol for The Chicago Board of Options Exchange Market Volatility Index. The VIX measures volatility implied through the S&P 500 index options. 

Nate told me he only followed one indicator, the VIX, and in all the years he used the strategy the only time he would invest was when the VIX closed above 30. It turns out Nate was a wicked smart engineer, and he kept really good statistics on the VIX. He took out his record book and showed me his stats where he calculated that, for him (this is not my or any firm's research) that when he bought when the VIX closed above 30 the S&P 500 was up one year later 91% of the time. A good stat to remember, I thought! Based on my research on Worden Brothers (www.worden.com) over the years, it appears to be accurate for the time periods dating back to the 1980's.

Back to that second "Special Update” above I mentioned, it was dated 4-7-2025, just one year ago, i.e. remember Tariff Tantrum?!

The VIX was at 54.56 - well above Nate G's goal of investing "all in" at a VIX above 30. At The Wealth Strategies Group, we were busy carefully, thoughtfully and strategically investing our client families’ hard-earned resources.

For sure, our goal is to "not make our client family poor"! So, we are not just in "the market" yet the market did well too.

As I wrote this update on Saturday November 8, 2025, just seven months later, The VIX rests at 18.93, down -65.30% from 54.56 on 4-7-2025. The S&P 500 rests at 6720.32, up +32.75% (over 51% annualized) from the 4-7-2025 level of 5,062.25.

………"Thank you, Nate G., R.I.P.!”

I did not say market valuations go straight up, and I did not say without volatility, yet the data flow suggests the good old USA has a very bright outlook.  Think “Five Year Money” (Read it Here).

As always, I am interested in your thoughts, comments, and questions.

Respectfully,

James O. Lunney, CFP®

CERTIFIED FINANCIAL PLANNER™ Professional  

*The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.  To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.  Investing involves risk. Loss, including loss of principal, may occur. No strategy assures success or protects against loss. All performance referenced is historical and is no guarantee of future results.  All indices are unmanaged and may not be invested into directly.

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