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The Weekly Update 05/03/2024

| May 03, 2024

The Weekly Update 5/03/2024


What Fear Looks Like!

The chart below covers a full two decades!

It is a chart from Barchart.com that measures the percent of companies in Corporate America that are above or below their 20-day moving average price per share.

The 20-day moving average has share prices down when fear is high as sellers unload en masse because they are afraid of losing money, i.e., fearful.

The red line is the level of last Friday’s close.  The green dotted line is on Friday’s market open.

Note the green dotted line is right about 14.  That is Pure Fear!

Two special notes to observe:

1.  The green dotted line at 14 was at the same fear levels as the lowest of the Covid lows (note to self from the Covid lows to now there has been an approximate +100% gain in valuations.

2.  I don’t know if we have a few weeks, a few months or 15 minutes left in this normal seasonal “back and fill” but I do know this;

     Over 96% of all readings in the last 20 years are above where we are now!

Yes, this is an opportunity for investors (owners) as the traders (renters) of Corporate America sell because they are fearful.

At the Wealth Strategies Group, we will use some of that cash we have as our “shock absorber” to add to our asset allocations by seeking to buy investments that are undervalued.

I’m interested in your thoughts, comments, and observations.  Feel welcome to call, email, or stop by the office and say Hi.

Respectfully,

James O. Lunney, CFP®

CERTIFIED FINANCIAL PLANNER™ Professional  

Asset allocation does not ensure a profit or protect against a loss.  Value investments can perform differently from the market as a whole.  They can remain undervalued by the market for long periods of time.

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested in directly. 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. Stock investing includes risks, including fluctuating prices and loss of principal.