The Weekly Update 10/6/2023

Knock, Knock!

As we close out September 2023 Corporate America, as measured by the S&P 500, made a lower low for 9 days straight!

So, fear in the air once again.  Here is a snapshot of the Fear & Greed Index as of 9/27/2023:

When you see “Extreme Fear”, as measured by this index, you usually have the American Association of Individual Investors (AAII) survey reflect a negative (Bearish) outlook.

Per the AAII Investor Sentiment survey of 9/27/2023, 72.2% of survey participants were not positive (Bullish).  Here it is:

Back to that opening paragraph, the S&P 500 has only been down 9 days in a row four times in 30 years.

What happened next on those occasions could happen again!  Over the next year of the draw down in 2003 the values rallied +36.8%, in 2011 +18.33%, and in 2018 after a 9-day draw down +33.66%.

When fear is extreme and investors are scared, like now, what happens next could be rewarding.

Here at The Wealth Strategies Group, we will not be asleep at the wheel, and we will be thoughtfully and intentionally adding some of the cash we raised in 2022 to tiptoe back into our lower risk, lower volatility and above average performing investment positions.

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  

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.