Buy The Dip OR Are Stocks Making New Lows | News or Noise

The S&P500 just pulled back about 200 points or -4.5% in 7 trading days. Quickly, many strategists on TV are out with calls for “retesting the bottom” or “the markets will make new lows.” The dire forecasts have come out of the woodwork. Nevermind, they didn’t correctly forecast the quick 2 month move from 3650 to 4325 in the S&P500 from mid-June to August expiration week.

I’m Chris Perras, Chief Investment Officer with Oak Harvest Financial Group. And This is our investment team’s mid-week release when we examine a news item, headline, or story making the rounds from publicly available sources and ask, “Is it News or Noise?” for your money. This week we take on the tactically trading calls from many on the TV financial news calling for stocks to make new lows, and we ask? Is it news or noise for your investments?

Viewers, Listeners, we do it too. Yes, I am guilty as charged for making these calls on occasion. Back in early July, our investment team’s indicators and tools that signal us to slightly accelerate our investment allocations for new clients were saying move a little faster. We published a video back then titled “Opportunity knocks early.” You can find a link to that video in the description below.

Then after a 2-month, 17% move up in the S&P500, of about 700+ points, on Monday, August 15th, with the S&P500 over 4300 and nearing the 200-day moving average, we published our weekend update for clients titled “2-month rally to stall speed.”

Subsequently, the markets have dropped about -4.5% back to where they began in August, and the bears have resurfaced in mass. Is this a “dip to buy”? Or the beginning of another meaningful move down that will take the markets to new lows in 2022? That’s the trillion-dollar question to some. To hedge funds and those trading short-term on margin, it’s the question they must answer. For our team, we have an opinion, a strong one, given the data we follow.

However, even so, we remind you that for most investors, not traders, it’s noise. Why? Because the data says that for investment time frames measured in years, not days, weeks, or months, it’s your initial asset allocation to equities and other assets and time in the market, allowing the economy and companies to expand their businesses that compound your money, not the shorter term tactical timing that is talked about nearly non-stop on TV.

At Oak harvest, we think our clients are best served by us helping them plan for their future needs, instead of focusing on the past. The future is always uncertain and that’s why our advisors and retirement planning teams, plan for your retirement needs first, and your greed’s second.

Give us a call to speak to an advisor and let us help you craft a financial plan that helps you meet your retirement goals. Call us here at (877) 896-0040, and schedule an advisor consultation. We are here to help you on your financial journey into and through your retirement years.
I’m Chris Perras and from everyone here at Oak Harvest Have a blessed week.