Time and again we are talking about “these crazy times.” Now the market is looking very shaky again. So, are the last few days a brief hiccup, the start of a small correction, or a dive into an abyss ala’ March-ish?

Certainly, we have an opinion and can back it up with data, but there are a lot of “professionals” spouting their opinions these days and any of these can be “proof-texted.”

This week I want you to understand when we took our first step conservative and why.

In the chart below is the S&P 500 (US stocks) in blue, the Barclays US bond aggregate (AGG) in red, and a gold star around February 28th.

Source: Tradingview

You can see the movement of the S&P 500, the deep sell-off, the big rebound, and the current downturn. You also see how the Barclays aggregate held up; sold off in March, recovered in April, then a flat but stable May and June. On February 28th, we moved our clients’ accounts risk-off, meaning that we took a step conservative; moving from predominately stocks to predominately bonds. For clarity, neither the S&P 500 nor the Barclays Agg is an exact representation of our investment portfolios, but this picture can help us understand our risk-off move.

Our goal is for you to stay invested over the long term, to minimize large losses, and to invest in the best times of the market cycle. We believe our rules-based investment framework helps us do that.

For more information on our credit spread signal feel free to read this white paper from our friends at WealthShield. CAN YOU TIME ALTERNATIVE INVESTMENTS?

This is the beginning of our framework explanation. This signal falls into the Market Sentiment section of that framework, THE TREND IS YOUR FRIEND gives a good education on that topic. Feel free to read all you want if you want to go deeper. Also, please check out of the FAITH-BASED INVESTING INDEX that we will talk more about in the future, please give me your opinion and ask questions. I would like your feedback.


Investment Advisory Services offered through Sound Financial Strategies Group, LLC (SFSG), a Registered Investment Adviser. Certain representatives of SFSG are also Registered Representatives offering securities through APW Capital, Inc., Member FINRA/SIPC, 100 Enterprise Drive, Suite 504, Rockaway, NJ 07866 (800)637-3211. SFSG and APW Capital are separate and unrelated companies.
The opinions expressed are those of Sound Financial Strategies Group, LLC (“Sound”). The opinions referenced are as of the date of publication and are subject to change without notice. This information is not a recommendation to buy or sell a particular security or to invest in any particular sector. The visuals shown above are for illustrative purposes only and do not guarantee success or a certain level of performance. Forward-looking statements are not guaranteed. Sound reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs, and there is no guarantee that its assessment of investments will be accurate. This information is not intended to be investment advice and does not take into account specific client investment objectives. Before investing, an investor should consider his or her investment goals and risk comfort levels and consult with his or her investment adviser and tax professional.
Sound is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Sound’s investment advisory services can be found in its Form ADV Part 2, which is available upon request. SFS-20-88
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