The Weekly Insight
The Weekly Insight
We've Been Here Before
Use Left/Right to seek, Home/End to jump to start or end. Hold shift to jump forward or backward.
Five Trump announcements about the Iran war. Five market rallies. Every single one fully reversed within a week.
By Friday, the market didn't even bother with a rally.
That's the story of the last month. The market’s been trading the rhetoric, not the facts on the ground. But Friday, the market has stopped buying it.
But here's what matters more: we've seen this movie before.
Almost exactly six years ago, we were holding an energy MLP fund that was down more than 70% while the S&P was down 34%. Everyone told us we were wrong. We held. We bought more. Our clients stayed the course.
From that COVID low through today, that position has outperformed the S&P 500 by more than 85%.
The Iran war is not COVID. But the behavioral finance lesson is identical. Fear is loudest exactly when patience pays the most.
Read more here: https://insightwealthgroup.com/the-weekly-insight-weve-been-here-before/
