Market Update - A Brutal September is OVER!

Market Update through September 30, 2022

📉🐻The first three quarters of 2022 saw all four major stock market indexes reach bear market levels.

Market in September fell 8.8% to 10.5%

The S&P 500 and Nasdaq have given back all their gains for nearly two years

The DJIA and Wilshire 2000 small cap index have done much worse, surrendering gains back to before the pandemic began in March 2000! 

Due to my profit taking, positions in cash (FZDXX) and iBonds plus some dip buying then profit taking in the August rally, my "Explore Portfolio" is ahead of the S&P 500 this year by 5.4%. But, I'm still down which never feels good.  Of course I have a huge advantage over the "buy and hold forever" crowd that didn't raise any cash during the record highs to use now to buy stocks back at much lower prices.  

The good news is with TIAA (There is an Alternative) now in that short term money funds pay a decent return but they are still getting crushed by inflation, which is where my iBonds are helping.  See Current Rates for New & Older I Bonds

From Bloomberg: BofA Strategists See Wall Street Rout Forcing Asset Sales

...accumulated losses could be forcing funds to sell more assets to raise cash, accelerating the selloff, according to Bank of America. 

... Stocks are falling again Friday, with the S&P 500 heading toward its third straight quarter of losses for the first time since 2009 and the Nasdaq 100 Stock Index for the first time in 20 years. 

...BofA strategists said to “bite” into the S&P 500 at the 3,300 level -- about a 9% decline from the latest close, “nibble” at 3,600 and “gorge” at 3,000. Hartnett and his team added that a drop of 20% below 200-day moving average has been a good entry point back into stocks in the past 100 years.

If BofA is correct about a looming liquidation event that will drive the market even lower for a massive buying opportunity, then some of the buy limit orders published on page 5 of my newsletter will probably be reached!

But if not and the bottom is in, we've already started buying back shares at these much lower prices than were I took profits. 

This graphic suggests the odds are favorable for a good October.

Make sure you take my poll on Facebook: 

• Poll: What will the S&P 500 Do in October 2022?

Whatever happens, I hope you are ready and have a plan!

Kirk Lindstrom's Investment Letter

To see my plan, what stocks and ETFs are on my buy list and what are my price targets:

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