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Re: The Time To Buy

August 14, 2022

This summer is the most ideal time to be buying stocks, according to the 4-year cycle.

Q3 of the Mid-term Election years. That's the sweet spot.

Do we see new all-time highs for the S&P500 before the end of the year?

The seasonal tailwinds certainly support that:

What we do is combine the Annual Seasonal Cycle with the 4-year Presidential Cycle and the Decennial 10-year Cycle to create our Composite Index.

On the left of the chart, representing last year, you've got every year since 1950, all the post-election years and every year ending in 1. As you can you see, last year's S&P500 performance matched up almost exactly with the seasonal trends.

For this year, we take every year since 1950, all the mid-term election years, and every year ending in 2. As you can see see, Summer of the mid-term year is when we want to be buying.

Now, just because the seasonals line up favorably doesn't mean we're just going to blindly buy stocks.

But when you combine these seasonal tailwinds, with historic extremes in bearish sentiment, and now overwhelming breadth improvement, it's hard to ignore.

We've been buying. And it's working.

We haven't been buying just because the cycle says to buy. But it's certainly helped with our conviction.

Are you fighting these trends?

Tell me why.

We're not. We're embracing the strength.

And if you haven't already gained access, our New App is the best way to find the most profitable opportunities. We built it specifically to do that.

And there's no better time than the present to take advantage of this new tool.

You can sign up for that here.

Give us a call at 323-421-7991 and our team will help you with any questions you have.

Or shoot us an email, and we'll get right back to you with all the details.

Happy Sunday!

- JC