It really is hard to believe that just two days ago the market was bumping up against an all time high. In just two days the S&P 500 (SPX) is down almost 4% on the back of fear of recession, potential impeachment of President Trump, hard Brexit risk, an Elizabeth Warren Presidency, and continued trade war with china. All the potentially negative factors today literally just seem to roll off our tongue.
Although the market is down just 4% from an all-time high two of our most sensitive tactical indicators have reached into oversold territory as we mentioned in our post yesterday. With all the issues in the background, it would be silly to suggest there won’t be periods of high volatility like we have recently seen, but as long as credit remains available we believe the weakness provides an opportunity rather than something to fear.
Past performance is not a guarantee of future results. Index returns are unmanaged and do not reflect the deduction of any fees or expenses.
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