Jean & I drove to Memphis this last weekend to spend time with our family and attend a very special event for our twin granddaughters. When we drive over, we know that when we get to Nashville, the trip is past the halfway point and when we drive back, we know we still have more than halfway to go until we get east of Nashville. (Either way, it’s a long trip.) For much of February and March, the equity markets have drifted downward, sometimes rather sharply. Classic definitions of a market correction are -10% and a bear market is -20%. Whether or not the S&P 500 climbs out of correction territory, (2840) anytime soon remains to be seen. Currently, it’s at 2642. In the meantime, the trading strategy used for portfolios continues to be as it has been, that being, fully invested. Using the economically covered option strategy, while it’s not guaranteed, still includes the protection against a sudden and dramatic stock market drop. Hopefully, the attached article about the correction will help.
Much of the US domestic spending is for funding Social Security, Medicare and Medicaid. It is estimated that by 2035, the elderly will outnumber children, a first in American history. Unless our elected officials in Washington do something, that is going to put a serious strain on the social safety net now in place. Normally, Washington does nothing until the very last minute, but we can hope for the best.
Now, if you’re still reading and maybe have a headache, here are 6 ways to keep your brain healthy.
Finally, we are working on some new ways to communicate with you, our clients and friends. News on that will be rolling out soon. Until that time, I will keep doing my weekly digest. So, hang in there and go out and make this a great week.