Category: Newsletters

Investors have come to expect the Federal Reserve to step in and save them if things get turn bad. They have been “trained” to buy the dip (BTD).

August and September are the two worst contiguous months of the year on average over the long-term.
From 1950 to 2023, the two contiguous months August and September have produced an average 0.7% loss.

The equal weight S&P 500 peaked in late March. Yes, late March. The S&P 500 (capital weight) just reached an All Time High (ATH).

In the “Sell in May” period, or what I call the Six Month Unfavorable period, the risk-reward profile of the market is weak and is characterized by poor performance, small gains (when they occur), lower frequency of positive performance and large losses.