Opportunity Is Knocking

Investors,

Market corrections during pullbacks, with zero change in the underlying fundamentals, are buying opportunities for most long-term investors.

Plain and simple.

Even if you disagree that they aren’t buying opportunities (and that’s fine), then at the very least, you must recognize that they aren’t valid reasons to justify selling assets that we’ve worked so hard to accumulate.

At the beginning of the year, I published a report titled “The Risk Of Not Investing”.

The conclusion of the report was simple:

Investors face a significant risk by not investing.

When the curve inverted 26 months ago, “analysts” and talking heads warned investors to be careful because a recession was on the horizon due to the inversion signal.

What has this advice produced in terms of investment results?

At the time that I wrote the report, the S&P 500 had gained +27.7% since the yield curve inverted in October 2022—a signal often linked to recessions... today, the index is now up a grand total of +55.8% (not including dividends).

The index would need to fall more than -35% to take out those lows (equivalent to the magnitude of the COVID crash and significantly worse than the peak to trough drawdown of 2022).

I’m not saying that those declines can’t happen again… they certainly will at some point in the future.

But what will the S&P 500 continue to do in the meantime?

The significant likelihood is that it will do what it tends to do historically…