October 9th, 2022

Hello everyone,

I hope your weekend was full of joy and adventure – even if that joy/adventure involved propping yourself up on the sofa and watching your favourite movie.

Volatility will still be with us for a while.  It has really been a roller-coaster, hasn’t it?

This week the September Consumer Price Index is out on Thursday.  Big bank earnings are out on Friday.  So, expect a bit of turbulence this week.

If you are getting advice to sell your stocks, sell your house, etc, John says to ignore it.  The so-called “gurus” are giving you advice that is only a year late.  And of course, they have 20/20 hindsight.  John reminds us that if we jump ship now, we will likely give up on making 100% gains in the years to come.  If he’s wrong, you could lose 10%, but make a double if he’s right.   Life is full of risk and that is a risk I’m willing to take.

How does John pick market bottoms so well?

Answer:  The lower the market is, the less aggressive the Fed is going to be.   Data points on the Consumer Price Index are heading down, particularly rents and housing costs, which means we can expect a big decline on October 13, when the next report is published.

The Fed is being assisted by some outsiders.  Look at the British economy - it’s not in good health and the U.S.$ is rapidly deflating the foreign revenues of the U.S.’s multinationals, such as big tech.

The final capitulation in stocks is near. 

Remember, good news on the job front is bad news for the Fed. 

Where do you plan to retire? Will it be in the U.S? 

The seven least affordable states to retire in 2022 are as follows according to Bankrate.

1/     Hawaii
2/     California
3/     Connecticut
4/     Massachusetts
5/     New Jersey
6/     Vermont
7/     Rhode Island

Have a fabulous week.

All the very best.

Cheers,
Jacque

The only true wisdom is in knowing you know nothing.

  -- Socrates