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Bear Market Rally
The mini stock market rally that started October 13th is up roughly 8% as measured by the US index most use as a proxy, the S&P500. This still leaves the index down over 20% since year to date and has hardly been as a result of much in the way of positive news that has excited the markets to any great degree or draw any conclusions that a bottom has been put in and we are in for another rip snorting bull market.
While the US GDP reported this morning was positive news it has hardly warmed the hearts of market participants as the market struggles to determine any direction. One might suspect that this will continue until US mid-term elections on November 8th. There is a lot riding on this election, and it would be naive to ignore the stock market and the economy isn’t a political hot potato.
There are dozens of stories and news events every day that contradict one another that can drive you mad if you try to figure it out. As an investor it is important to have a money management process that takes out the emotional element and ignores the day-to-day rhetoric that can cause human error in making investment recommendations. My process since the crash of 2008 does that and at this point, we are nowhere near the point of investing anything into the stock market and are shy of the bond markets as well due to rising interest rates and runaway inflation. Our process driven data has us sitting on the sidelines for now and will be alerted when it is safe to return to the markets.
Where Are We Now In The Cycle
I have mentioned the Mike Maloney 10-part video series called the Hidden Secrets of Money in previous blogs and how he started this series after the Great Financial Crisis of 2008-09 because of what he saw happen and where we as a society are headed. The detail that he goes through to discuss long wealth cycles is worth watching the entire 10 videos, each about 30 minutes long with episode 8 being about crypto currencies. I have been telling people for months that we are experiencing episode 7 but I think it is safe to say that we have passed that point. I suggest everyone watch series 9 and 10 of which I have attached the links below as time is moving faster and we are in the final stages.
In the final stages of a wealth cycle, things happen fast and for those that did not prepare it could be costly. Maloney echoes the sentiments of many that we are going to witness the greatest transfer of wealth in history. Many will prosper but many more will lose. My wish and motivation are that everyone is prepared and after watching these two episodes (I encourage you to watch all the episodes but because time is money you can skip to episodes 9 and 10) if you wish please reach out for a no obligation consultation on what myself and my clients are doing to not only survive but thrive from what is ahead.
CDIC Update
A few days ago, I write a blog regarding the safety of your money in the banks. I should have attached the Canadian Deposit Insurance Corporation brochure that outlines what the Federal government agency promises if your bank happens to fail. Here it is. CDIC Protecting your deposits
You can read all my past blogs and even learn more about me at www.darylcooper.ca
Yours in Faith, Family and Finance,
Daryl
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