Spock And The Logic Based Approach To Volatility

Summary

• The market rallied above the 20-DMA this past week as investors found some silver linings to the ongoing tariff dispute.
• There will be a point where taking on excessive speculative risk in leveraged ETFs and options leads to poor outcomes.
• The current conundrum is whether the extremely low technical readings preceding this week’s rally were a technical bounce or a market bottom.
• If your current reaction to recent market volatility is to expect it to continue indefinitely, you will likely be disappointed.
• During volatile markets, as we have currently, it is crucial to step back and focus on the broad performance of the portfolio relative to your goals.