Cut Your Risk While Staying Invested

If you're confused about the market right now... good. That means you're paying attention. After all, the world is full of mixed signals... [Chaikin PowerFeed]( Cut Your Risk While Staying Invested By Marc Gerstein, director of research, Chaikin Analytics If you're confused about the market right now... good. That means you're paying attention. After all, the world is full of mixed signals... Has inflation peaked or do we still need to fight hard against it? Is the economy improving or is the Federal Reserve driving us into a deep recession? Is Western Europe heading for an energy crisis or will it figure things out? If you look around, you'll find headlines to support all these views – and more. So as an investor, it can be hard to figure out what to do... Of course, our goal is to reduce risk during uncertain times like today. But at the same time, we don't want to put too much of our money on the sidelines in case the market rallies. The Power Gauge can help us rotate from one sector or investing style to another. But the market's wheels are turning faster these days... So that might require a more active approach than you want. Fortunately, conservative investors can do one thing to navigate these rough waters. Let me explain... Recommended Links: [How to Instantly Make $3,230, No Matter What Happens in the Market This Week]( This simple, 94% accurate, and recession-proof income strategy has nailed 132 WINNERS in a row and could soon deposit thousands MORE into your account - EVERY single month - starting today. [Click here to learn more](. [A Gold Storm Is Coming]( Some of the richest men in the world are jumping in right now... because evidence suggests we could see MUCH HIGHER gold prices before the end of this year. But if you're not taking advantage of a little-known way to invest for less than $10, you're missing out. [Click here for full details](. In short, you could consider the Invesco S&P 500 Equal Weight Fund (RSP). This exchange-traded fund ("ETF") holds the same large, generally high-quality companies as the better-known SPDR S&P 500 Trust (SPY). It includes all the S&P 500 components. But importantly, RSP's positions aren't weighted by market cap like SPY... For example, the biggest S&P 500 component is Apple (AAPL). Its market cap is around $2.5 trillion. And with a market cap of about $3.7 billion, clothing maker PVH (PVH) is the smallest. Apple accounts for roughly 7.1% of SPY. And PVH is only about 0.01%. (Yes, seriously!) It's a different story with RSP... Every holding makes up roughly 0.2% of the ETF. That allocation can sometimes get out of whack as daily trading occurs. But the ETF rebalances every quarter to about 0.2%. [And as I've discussed before]( these weighting protocols are a big deal... Market-cap weighting, like SPY, has been around for ages. But lately, investors have fallen deeper in love with the biggest, most glamorous boom-and-bust stocks. Now, "boom and bust" doesn't refer to the companies themselves. They're all stable giants. Rather, it's about their stocks – which gyrate heavily as valuation expands and shrinks. So with more investors taking this type of approach in recent years, glamorous stocks like Apple, Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), and Tesla (TSLA) are hogging up more of SPY's portfolio. Today, their combined weighting is roughly 22%. In other words... nearly a quarter of an ETF with 500-plus holdings is tied up in five stocks. That's a big deal when it comes to performance... For much of the past decade, the S&P 500 soared. And the glamorous stocks led the charge. As a result, the market-cap-weighted SPY outperformed the equal-weighted RSP. But during challenging times, the story plays out differently. Take a look... [Chaikin PowerFeed] As you can see, RSP is down roughly 13% so far in 2022. However, that's better than SPY's more than 17% loss over the same period. Nobody ever wants to lose money. But if you stick with SPY and the market's slide continues, you'll likely be much worse off than if you put your money in RSP. In turbulent times like today, risk management is key. And RSP helps us do that. We're not aggressively biased to the boom-and-bust stocks. But at the same time, we're not putting all of our money on the sidelines. That way, we'll still benefit if the market rallies from here. It's the perfect way to stay invested with less risk. Good investing, Marc Gerstein Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 +0.11% 0 24 6 S&P 500 +0.34% 71 313 115 Nasdaq +0.79% 10 66 24 Small Caps +0.41% 340 1045 465 Bonds +0.34% Energy +2.84% 8 11 2 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are somewhat Bearish. Major indexes are mixed. * * * * Top Movers Gainers [rating] CTRA +7.22% [rating] APA +6.72% [rating] MRNA +6.17% [rating] SBUX +5.53% [rating] RCL +5.38% Losers [rating] NUE -11.31% [rating] CNC -6.79% [rating] DISH -6.27% [rating] CRL -5.22% [rating] ORCL -5.16% * * * * Earnings Report Reporting Today Rating Before Open After Close PGR SITE ADBE No earnings reporting today. Earnings Surprises No significant Earnings Surprises in the Russell 3000. * * * * Sector Tracker Sector movement over the last 5 days Energy +5.08% Discretionary +0.07% Health Care -0.04% Utilities -0.61% Financial -0.63% Information Technology -1.19% Materials -1.46% Industrials -1.83% Staples -2.30% Communication -2.42% Real Estate -2.99% * * * * Industry Focus Aerospace & Defense Services 4 19 11 Over the past 6 months, the Aerospace & Defense subsector (XAR) has underperformed the S&P 500 by -6.56%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #13 of 21 subsectors and has moved up 5 slots over the past week. Indicative Stocks [rating] SPR Spirit AeroSystems H [rating] SPCE Virgin Galactic Hold [rating] TGI Triumph Group, Inc. * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. For questions about your account or to speak with customer service, call [+1 (877) 697-6783 (U.S.)](tel:18776976783), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2022 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. 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