31 Reasons to Sell Stocks… (or maybe not)

Dear Mr. Market:

Have we started off the year with enough things to worry about? The 2020s have seen more than any horror script one would ever want to draw up. We’ve had an unprecedented global pandemic, a massive stock market crash, and now a war….and we’re just two years in! We’ve constantly reminded people that the stock market always has a boogey man hiding in the darkness. Even in the proverbial “good times” people have a natural tendency to feel as though the party will end at some point. To that point…they’re partly right; the party doesn’t necessarily end but it certainly takes a break before resuming.

Today’s article will be rather short, even though there is much behind it (and of course more to come as this story develops). We often talk about people having short memories but don’t think that the Ukraine and Russia conflict just started last week. Click here if you need to catch up on a conflict that’s been in flux since February of 2014. The point of our “letter to Mr. Market” today, however, is on what to do with your investments.

Much like Baskin-Robbins ice cream and their 31 flavors, we found a chart that you need to take a look at; it may not be as soothing as an ice cream cone but it can do wonders for how to put things into context. Below we’re sharing a chart that really want you to take some time to zoom in and reflect on each incident. How did you feel during each one? Were there any that you completely blew off or thought they were overhyped? Conversely, which one scared you the most into actually selling?

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Sorry Ram Fans….Go Bengals?

Dear Mr. Market:

The investment world has not given us much of a break lately. Everything is down….everything…..except gold and emerging markets, but you saw that coming, right?!? Before we dive in, let’s just post some quick year to date numbers and then get to the football banter. Large Caps are down -5.4%, Mid Caps -4.2%, Small caps -5.9%, International -8.1%, and Bonds (which are supposed to shelter us from some of this near-term pain) are down -3.2%. Again, the only thing that is up YTD is Gold at +0.10% and Emerging Markets at +2.5%. Switching gears, allow us to lighten the mood and focus on something mildly entertaining (yet related to the stock market). Why should you be rooting for the Cincinnati Bengals this Sunday during Super Bowl XVI?

All kidding aside, and at the risk of upsetting any Los Angeles Rams fans, the AFC teams winning lately have been good for the bulls. What we’re talking about here is the Super Bowl Indicator. At a minimum this is a helpful article for you if you don’t have a “dog in the hunt” and your team lost weeks ago, never made the playoffs, or you could care less about football yet might be around people who do on Sunday.

In 1978, Leonard Koppett, a sportswriter for the New York Times, came up with the Super Bowl Indicator and for many years it was never wrong! Up until that point the results pointed towards NFC teams winning being the one that seemed to help the stock market the most.

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