From the desk of Willie Delwiche.
Key Takeaways:
- Market experiencing most persistent weakness since Financial Crisis.
- Path forward is about finding new opportunities rather than repairing past paradigms.
- Energy & Latin America benefitting from Commodity strength.
We are in the midst of the longest stretch of consecutive days of more new lows (NYSE+NASDAQ) than new highs since the financial crisis. While there have been more intense peak-to-trough drawdowns in the popular averages over the past decade and a half (late-2018 and early-2020 come to mind), it is the persistence of the weakness in the current experience that is noteworthy. Whether looked at from a market perspective or a macro perspective, the longer the disruption, the harder it is to just bounce back. Repair and recovery require time. While sitting tight paid dividends in the past, the best course for investors now may be to lean into strength where it can be found.
