It's official, inflation is at a 40 year high and we're in a recession.
But this week's 6.47% decline in the S&P 500 is a gut punch to passive investors.
Here's the thing about bear markets...
They like to trick you into thinking they have come to an end.
Bear markets are known for moving fast and fooling investors. It's important to be aware of the potential traps and focus on signals that can help us make the best decisions and thrive.
One trap to avoid is getting caught up in the emotion of the market.
It can be easy to make decisions based on fear or greed, but this is often when mistakes are made. It's important to stay calm and focused so you can make decisions based on logic and reason.
Another trap is listening to too many voices. When the market is volatile, there will be a lot of noise and it can be tough to decipher the signal from the noise. It's important to stay focused on your own goals and objectives, and not get swayed by the opinions of others.
Finally, don't forget that bear markets end. It might take some time, but the market will recover. This doesn't mean you should try to time the market, but it's important to keep this in mind so you don't get too discouraged during tough times.
If you can avoid these traps, you'll be in a better position to navigate the bear market and come out ahead. Stay focused and stay disciplined, and you'll be on your way to success.
That's why we'll continue to follow the Hot Money, be strategic and come out ahead.
Let’s talk about the CBOE Volatility Index (VIX) which closed at 27.
That’s an increase of 3 percent from last week's reading and indicates we will continue to see 100 point swings in S&P 500.
Now let’s talk shop.
Here’s a recap of what we did this week.
Buy-to-open SLB July 15, 2022, $50/55 call spread
Right now, we’re holding:
- FB June 17, 2022, $240/$255 call spread
- MRO July 15, 2022, $33/$37 call spread
- SLB July 15, 2022, $50/55 call spread
Have a great weekend and enjoy a fresh spicy margarita - TGIF!
To your wealth, freedom, and options!
Joshua M. Belanger