We understand a less experienced investor might be struggling with motion sickness in this market... we recommend Dramamine. It's common for the market to hesitate before crossing certain thresholds as it declines. This morning's rally is a prime example of the market's hesitation to enter what we call bear market territory. The market has historically found "support" at certain levels, measured from a previous high. We've now experienced two market bounces off the 20% "support" level.
On one hand we could see the market hold this 20% support level, find its legs and begin making its recovery. There are several good companies we think are worth owning with much more attractive valuations today than three weeks ago. On the other hand, if the market takes out that 20% support level, we could potentially be on the doorstep of our first bear market in ten years.
Let us remind you, we are watching high yield credit spreads and the price of oil closely. We'll keep you informed.
The Sphere Wealth Management Team
Sphere, LLC is a Registered Investment Adviser. Advisory Services are only offered to clients or prospective clients where Sphere, LLC and its representatives are properly licensed or exempt from licensure. Investing involves risk and possible loss of principal capital. No advice may be rendered by Sphere, LLC unless a client service agreement is in place. Additional information about Sphere, LLC also is available on the SEC's website www.adviserinfo.sec.gov