Explaining how to avoid market downturns with Wealth E&P’s indicators
July 6, 2021
Welcome to Wealth Enhancement & Preservation’s Market Minute, where we get to update you on everything that happened in the financial markets this past week. For this week, we are reporting on Tuesday after the Fourth of July long weekend.
Today I'm going to talk to you about why it's so important to keep updated with us for when the market does eventually have a downturn.
First, as we've been talking about recently, the market has been on a high. This week was another great week; the market was up over 1%.
I want to take a quick look at the year to date: S&P is up almost 16%, the NASDAQ is up 13%, the DOW is up 14%, and our managed growth strategy is up almost 17%. You can see the lines are fairly different though, with the NASDAQ showing a lot more volatility and the S&P being a little bit more stable.
So, why is it so important to keep updated with us at Wealth E&P?
I've been giving you updates over and over again, and our signals are optimistic that the market is going up. So, I wanted to show you what happens when the market is going down.
What I really want to point out here is you can see one of our signals in January of 2008, right when the market started to crash, showed red; we got out of the market and sat on the sideline while the market dropped over 40%, until May of 2009 when we got back in.
With another one of our artificial intelligence signals in 2008, you can see the market was dropping 37% at that time. We got out of the way and stayed out of the way until the market had an opportunity to get back in. Then, we rode it back up.
This is one of about 80 different indicators that we get with different signals that we use to make decisions. I just wanted to let you know that we're not always optimistic and not always saying the market is going to go up. I want you to pay attention, because one day I'm going to come on here and say that it is time to get out of the way.
If you have any questions for us, if you want a risk profile, or if you would like a retirement projection, please feel free to reach out or visit www.wealthep.com. Otherwise, stay tuned for our next Market Minute next week!
At Wealth Enhancement & Preservation, we are here to serve as your financial advisor and source of support in the Alpharetta, GA, Cartersville, GA, and Charleston, SC areas. Our advisors are dedicated to simplifying the complexities of the financial world and as your advocate, we strive to learn about your most valued goals and dreams. From individual investors to entrepreneurs, our services are designed for your success.