The Weekly Update 3/28/2025
We Have All Seen This Movie Before!
Most of us have a favorite movie that we watched a second time. Sometimes the movie is fun to watch, yet not as exciting, emotional, happy or sad as the first time.
Pasted in below as Chart #1 is my list of the 20 scariest market movies. All of these were titled “Fastest 10% correction from 52 week high”. The only difference between them are the dates of “release”!
As you observe the list below, note my red arrow that places the current version of this market correction movie, released on 2-19-2025, is in the Top 5 fastest 10% drops of the 20 listed!
In Chart #2 below, the cause of the drop has been added into the middle, yet most importantly the valuations of Corporate America as measured by the S&P 500, going forward after the correction are on the right side.
Pay special attention to the far-right return, 12 months out, and specifically to the gray summary box at the bottom, i.e. up 100% of the time after each with an average return of +19.90%.
No one knows the future, and no one knows if “this time will be different” than the others. But I would suggest (i) you also click here, (5-year money), to review the fact that a five year holding period is a constant winner and (ii) consider adding to your assets under our advisement now while Corporate America is still on sale. As I wrote in last month’s edition of The Seven Signs of a Changing Economy™ (Read it Here), this version of the down draft movie has been caused by the fear around tariffs on our economy, yet, as I write this update on 3/26/2025 not one U.S. citizen has paid even $1 in tariffs.
I elaborated on this point in our Seven Signs monthly call. To listen, you can (click here) then drag the call forward to about the 10 minute mark where I go into specific detail on “ tariffs as a bargaining chip” versus an economic road block!
This is where bigger financial futures can be added to at reasonable prices.
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
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.