The More Things Change

As French writer Jean-Baptiste Alphonse Karr famously said in 1848, "plus ?a change, plus c'est la même chose" or as you've most likely heard it "the more things change, the more they stay the same". It is unlikely?Alphonse?Karr was referring to the stock market as there was a revolution going on at the time. Who knows though, the markets do have a funny way of capturing far more mindshare than they deserve.

Anyway, moving on from this week's history lesson and back to the good stuff.?

The market moved around a lot but ended off just a little from where it started the week prior.

There’s still room for a small move up here as the previous oversold level has the market trying to move back toward neutral in terms of the supply and demand imbalance. However, this still appears to be a way station as the market should move lower given inflation creeping up and quite a bit of Fed tightening still to come.

An eventual reset of the S&P 500 to the 3800 level, with the final bottom somewhere around 3400, is still the most likely path forward. It’s still possible that the market ends the year right around where we are, somewhere in the 4000 range, but we will have some pain to go through before year end.

We know it can be difficult to justify leaving your money invested or even adding more when the expectation is for the market to go down. However, stocks have the best chance of beating inflation over time, so stay the course. It may seem counterintuitive, but buying as the market is going down, and significantly off the highs, is great for investors,?especially those?who have a long time horizon.

As you continue to invest, Pave will make sure your portfolio is well positioned for the market conditions at hand. Our goal is to minimize the lows and make sure you're ready to take advantage when it's time for the highs.

Best,

Pave Team