V2 Model September 17, 2022 CHANGE

Recap

The stock market started the week on an upbeat note. Market participants had a rosy outlook for the future having latched onto the peak inflation, peak hawkishness, and soft-landing narratives. 

Upside momentum quickly fell to the wayside after the August CPI report gave market participants a reality check. It renewed concerns about persistently high inflation, an aggressive Fed rate-hike path, and a potential hard landing that would undercut current earnings estimates. 

The reaction from both the stock market and the bond market was brutal. This marks the fourth losing week out of the last five weeks for stocks and Tuesday's sell-off was the fifth-largest point loss for the S&P 500 in history. By the end of the week, the S&P 500 fell below the psychologically important 3,900 level.

The V2 Model Portfolio was up this week and continues to outpace our benchmark of the SP500 by a wide margin. 

With a number of thresholds crossed this week we will make a change during Monday's session.

Performance This Week / YTD

V2 +1.34% / +.64%

SPY -4.78% / -17.88%

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