The Weekly Update 5/2/2025™
“This is What I Meant!”
Do you remember all those times you read in these Weekly Updates and in The Seven Signs of a Changing Economy™, these words,
“Pray for a Correction”
Well, this is it and I have the American Association of Individual Investors (AAII) chart from last Wednesday (4/23/2025) to prove it.
This is not just any old data point! This is “The Mother”!
Focus on “The Gold” box at the bottom. Read it out loud to yourself. Now look at my blue arrow and make a special note to yourself that investor FEAR is right now only about 2% from the Great Recession low of 2008-2009.
Let’s take a quick trip down memory lane and remember what happened right before this measure of investor fear hit 19.7%. (Special Note: In my Best Selling Book, Surviving The Storm, McGraw Hill, released worldwide, September 2007, I predicted much of these in chapter 10 and appendix “B”. If you would like a copy, just email your request to me.)
• Millions of homes were in foreclosure.
• The mortgage market collapsed.
• Two of the largest insurance companies on planet Earth went bankrupt.
• 4 of the top 15 banks in the USA failed.
• 4 of the top 10 Wall Street firms in the country failed.
• Merrill Lynch failed but was “allowed” to be rescued by Bank of America with our taxpayer money.
All of this and much more that I won’t bore you with happened BEFORE we hit the fear levels noted above.
If you honestly believe we are even in the same hemisphere, now versus then, you must not recall how close we came to financial systemic collapse.
Also recall that back in 2008-2009, the Dow Jones Industrial Average (DJIA) was valued at close to 6,700!
As of this writing on 4/30/2025 the same DJIA rests above 40,000 even after the recent speed bump correction of about 10%.
• I prayed for a correction in the value of Corporate America.
• My prayers are here and answered.
• The spring-loaded effect of a ball being held deep under water is going to be released and my independent, source cited, fact-based data suggests sooner rather than later.
• This is a blessing for long-term investors who have the patience and discipline to lean into the storm.
• Our client family accounts will see additions to their investment positions, as needed, to be positioned for what I believe will be a healthy rebound.
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 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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