A Little Break In The Markets Before The Final Crash

Consumer confidence at 40-year lows

Source: Pexels

There seems to be a totally aligned sentiment that we are going into recession. I see many people resigned to the fact that this is going to happen, and it is impossible to avoid it. In fact, we have been getting emails about this for a few months now:

• How much could the markets pull back?
• Don’t you consider reducing exposure in position X and then buy cheaper?
• Etc.

As if that were not enough, the major newspapers and economic magazines worldwide have been continuously announcing this catastrophe. The latest to join in has been Goldman Sachs, which has said that the markets are about to retreat an additional 20%.

However, what we have seen during the month of July is the best month for the S&P500 since 1938, and surely all those who send us the above questions have not taken advantage of it. Since July, we have grown our portfolio in that period by 3.24%.

This increase is below what the markets have done. However, our YTD is -2.54% versus -20.75% for the Nasdaq.