MESSAGE FROM JON                                                  

   Relax & Breath

We have been speaking about the market's volatility and the potential for a retest of the March lows in our opinion since, well, March.  We do not know if today is the beginning of or a continuation of a corrective move down, no-one does.

These are some of the markers we have been looking for since the bottom:

• The volume on the S&P 500 has essentially doubled since March.
• Equities out performing gold these past nearly 2 months.
• Spreads on bonds have begun to close in these past nearly 2 months.
• The VIX had come down below 25 for a week or so before reversing back up this week.

The above mentioned improvements to the market data clearly showed in our opinion, that we have shifted from the acceptance phase to the recovery phase even though we had not seen a retest of the market lows like we had figured we would have.

What we saw as legitimate possibilities in our opinion:

• The markets could & can still "retest" their lows of March.
• The coronavirus new case count would likely rise with the lifting of the quarantine
• We would see further progress on the vaccine or immune therapy front than we have seen thus far

What our thoughts are at this point:

• We are still of the opinion that the worst part is behind us, i.e. the panic phase.
• We are still of the opinion that while the markets COULD still retest their lows, we are still looking to realign accounts and continue with the buying of the stock strategy as previously indicated because our focus is NOT on the short-term, it is on the long-term and in 3-5 years, we will be in a much different place than we are today.
• We are hopeful that this market condition retreats and becomes more aligned with reality than these past several weeks have shown
• ALL of our models and conversations internally have continued to factor in the sudden retesting possibility that may or may not currently be unfolding so, this scenario and situation is not a surprise to us

Nothing else to do here but stay healthy and be kind to one another.  Lord knows we all could do with a little reprieve from the tensions and unrest as of late.

Thanks

Jon

About Summit Financial Group of Indiana                            

Jon McCardle is the owner of Summit Financial Group of Indiana based out of Lafayette, IN.  Jon and his team specialize in keeping clients retired once they get there and helping everyone else get there quickly!