The Weekly Update 4/29/2022
Look Out Above!
The chart below is from Dr. Ed, i.e., Yardini Research, one of my favorite sources.
My business friend of over forty years, Mike Williams shared this one with me.
This chart is for investment advisor Bullishness (positive on the investment outlook) versus Bearish (negative on the investment outlook).
I love this chart as it peeks all the way back in time to the crash of 1987.
Note how few times we get to these levels in sentiment. Let's start from the far left of the chart back in late 1987:
The Crash of October 19, 1987
The Recession of the early 90's
The (non) Recession Trade Range of the mid-90's
The end of the Tech bear in 2003
The Great Financial Crisis of 2008-2009
The New Tax Laws Scare of 2011.
Brexit and the Greek Debt Crisis of '15 / '16
China Tariff War of 2019
The COVID Shutdown of 2020
They all had two things in common:
a) They absolutely sucked going through the event, with the fears and angst buildup, all while the squeeze was spring-loading the future returns - and
b) They were all - and I mean - ALL, important lows in time for long-term investors.
They all required patience, as they also made you question the future.
Most of all, they all presented buying opportunities in the larger view of time and patience. This is setting the stage as yet another repeat.
Look out above!
I’m interested in your thoughts, comments and observations. Feel welcome to call, email or stop by the office and say Hi.
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. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. Investing involves risk including loss of principal. No strategy assures success or protects against loss.
Bonds are subject to credit, market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.