S&P 500 Weekly Update: Earnings Matter, The Bull Market Pushes Higher

Summary

  • Sector rotation is a key now as it keeps the overall market healthy.
  • Avoid the noise, earnings matter, and so far they are not disappointing.
  • Investors should avoid trying to outguess the market. The best strategy to date has been to take what the market gives you and stay the course.
  • It is a mistake to let politics enter into the investment picture, despite the urge to do just that.
  • This idea was first discussed with members of my private investing community, The Savvy Investor. To get an exclusive 'first look' at my best ideas, start your free trial today >>

"Planning is about bringing the future into the present, so you can do something about it now." - Alan Lakein

Mistakes, for those that have plenty of experience in the markets, it’s no great revelation that we have made mistakes, lots of them. Miscues are part of the game and they have to be accepted. Investors also need to realize the fact that in this game you will find yourself making the same mistake over and over. That is the human emotion machine at work and it takes a long time to break that cycle.

Benjamin Graham is the father of value investing, Warren Buffett’s mentor, and the author of the greatest and/or most read financial book ever, ”The Intelligent Investor”. A little know fact is that Mr. Graham made some huge mistakes. And not only did he get destroyed, he did so through the use of leverage;

“In 1930, thinking the worst was over, Graham went all in and then some. He used margin to leverage what he thought would be terrific returns. But the worst was not over, and when the Dow collapsed, Graham had his worst year ever, losing 50%. He personally was wiped out in the crash. Having ducked the 1929 cataclysm, he was enticed back into the market before the final bottom. In the four years from 1929 to the bottom in 1932, Graham lost 70%.”

Before any investor embarks on a strategy they have to know themselves, understand and play to their personality strengths. Above all, don’t blame the market or someone else for a mistake. Be brutally honest with yourself.

Then there are the situations where no matter how much we may have prepared for a certain outcome, an event could come along an turn that plan upside down. It happens. Investing isn't easy.

There is a reason for those excellent reviews, Solid results, equals satisfied subscribers. The Savvy Investor Marketplace service offers the keys to investment success. The stock market will fool most of the people most of the time. It is time to get in on the right side of the trade. Please consider joining one of the most successful new ventures here on Seeking Alpha.

This article was written by

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INDEPENDENT Financial Adviser / Professional Investor- with over 35 years of navigating the Stock market's "fear and greed" cycles that challenge the average investor. Investment strategies that combine Theory, Practice, and Experience to produce Portfolios focused on achieving positive returns. Last year I launched my Marketplace Service, "The SAVVY Investor", and it's been well received with positive reviews. I've been part of the SA family since 2013 and correctly called the bull market for over 8+ years now. 

MORE IMPORTANTLY, I recognized the change to the BEAR MARKET trend in February '22. 

Since then investors that followed my NEW ERA investment strategy have been able to survive and profit in this BEAR market. Winning advice that is well documented, helping investors to avoid the pitfalls and traps that wreak havoc on a portfolio with a focus on Income and Capital Preservation.

I manage the capital of only a handful of families and I see it as my number one job to protect their financial security. They don’t pay me to sell them investment products, beat an index, abandon true investing for mindless diversification or follow the Wall Street lemmings down the primrose path. I manage their money exactly as I manage my own so I don’t take any risk at all unless I strongly believe it is worth taking. I invite you to join the family of satisfied members and join the "SAVVY Investor".

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This article contains my views of the equity market and what strategy and positioning is comfortable for me. Of course, it is not suited for everyone, there are far too many variables. Hopefully it sparks ideas, adds some common sense to the intricate investing process, and makes investors feel more calm, putting them in control.

The opinions rendered here, are just that – opinions – and along with positions can change at any time.
As always I encourage readers to use common sense when it comes to managing any ideas that I decide to share with the community. Nowhere is it implied that any stock should be bought and put away until you die. Periodic reviews are mandatory to adjust to changes in the macro backdrop that will take place over time.

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