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How to Avoid Stock Market Carnage - October Foundational Profits Issue

Nick Hodge here, inviting you to check out the October issue of Foundational Profits, where I write about what I'm doing with my long-term safe capital — how I'm managing it, how I'm stewarding it, how I'm protecting it, how I'm growing it, and where I'm allocating it to in the market.

The market's been interesting this year.

You've got interest rates now that are the highest they've been since 2006. That's wreaking havoc on the bond market, with 10 and 20 year bond prices having one of their worst years ever.

And that's laid waste, for lack of a better term, to the traditional 60/40 retirement portfolio. We haven't owned bonds all year. We completely sidestepped the carnage in the bond market and have been able to make gains in other areas of the market.

Really, only seven stocks, the so-called Magnificent Seven stocks in the S&P, have propelled the gains for the S&P 500 so far. It's up about 13% for the year, for 2023. Here we are in October. If you back out those seven stocks, which include Meta and Amazon for example, the stock market would be flat for the year.

And so, unless you own those seven stocks specifically, and certainly if you own bonds, you've been having a rough year.

We've been in other areas of the market.

We've been in defense stocks, which have been going up. We've been in gold, which has certainly been going up on the back of renewed conflict in the Middle East. And we've been in oil, which has been going up too, as the economy reinflates.

Last year, in 2022, we were at 40-year high inflation, around 9% on the CPI. And that came all the way down to the low threes in 2023. But that's now been re-accelerating.

So you have lots of questions about what that means for the Fed.

What is the Fed going to do? What does that mean for bond yields and interest rates?

And at the same time, you've got a consumer that's been really struggling to make ends meet. You've got credit card interest rates that are at 20% or better, rising delinquencies in credit card payments. You've got a mortgage rate that's at 8%.

I read a recent report saying that a family had to make $115,000 right now to be able to afford the payment on a median-priced home in America. I'll tell you something, the average household income in America is closer to $60,000, half what it costs to buy a house.

There's trouble in the financial markets and we've done well to navigate it and sidestep some of the carnage.

I'd love for you to take a look at how we’re doing that.

The Foundational Profits issue for October is over 4,000 words long. It covers all the things I just talked about much more in depth, from Fed policy to broad indices, to individual commodities like gold, uranium, and oil, along with advice on how I'm allocating or not allocating to all of those individual sectors.

You'll get access to the portfolio, which shows everything we've sold this year and everything we're currently buying, and under what price.

And you'll get access to all the special reports.

It’s certainly worth checking out Foundational Profits for this October issue, especially because all of the risk is on me.

It's $199. If you don't like anything you see, or even if you do and just want your money back, you're welcome to subscribe, read all the reports, look at the portfolio, read the issue, and then call our wonderful customer service team to get your money back.

All the risk is on me.

If you're having trouble navigating the stock market, if you haven't been able to figure it out, or if you want to just duplicate what a successful investor has been doing, then I encourage you to check out what I'm doing over at Foundational Profits by filling out this form.

I hope to welcome you soon as the newest member.

Nick Hodge
Publisher, Daily Profit Cycle