Emergency Newsletter - Regime Change
Investors,
Emergency market conditions call for an emergency response — hence this report.
Bitcoin plummeted from $109k to $78k in 1 month.
The S&P 500 has gained ±1% for 5 straight days.
The VIX jumped +33% in a 5-day span.
Credit spreads are making higher highs.
Speculative growth stocks are getting whacked.
Risk-on vs. risk-off ratios are making lower lows.
All of these dynamics are emblematic of heightened uncertainty & risk.
Long-term uptrends haven’t been violated, as I shared this past weekend, but we’ve seen how quickly market conditions can change given that the S&P 500 made new all-time highs 2 weeks ago.
I’ve tried my best to read the tea leaves, reviewing both bullish and bearish data.
While part of me is still bullish, another part of me has considerable doubts and I feel apprehensive due to the intermarket signals & datapoints that I recently highlighted.
As a result, I’m increasingly concerned that the market has entered a new regime and that it’s time to implement a new investment strategy.
Let me explain…