Don’t let FOMO lead to investing mistakes

There’s a more sophisticated way to look at the markets You are receiving this email because you signed up to receive emails from True Market Insiders. [Unsubscribe here]( Keep the emails you value from falling into your spam folder. [Whitelist True Market Insiders](. Forgot your login information? Click [here](. EDITOR’S NOTE: I’m sharing some market analysis from the team over at Avalon today. From time to time, I like to give you a behind-the-scenes look at what clients at money management firms come to expect from their investing teams. One of the hardest emotions for many investors to overcome is FOMO. The “Fear of Missing Out” forces many investors to take trades that they shouldn't. This is why at Avalon, we prefer to use rules-based, systematic approaches to investing, as it helps to minimize making emotional decisions that often lead to mistakes. Despite last Friday’s rally, the market ended lower for the week on comments from Fed Chair Jerome Powell that a pivot to cutting rates may not come as quickly as many had hoped. Then Friday’s stronger-than-expected payroll numbers sent Treasuries tumbling and rates higher. Technically, the 129 level is an important level to watch on the long treasury futures as a breach of that level will probably bring with it an acceleration in declining price (and a rise in interest rates). Unease around the budget debt ceiling is also adding to sentiment after Janet Yellen notified congressional leaders that the Treasury may not be able to meet its obligations as early as June 1. Tech stocks have managed to keep the stock market rally in play, but that may be getting increasingly difficult. The fact is, the current market leaders are facing an increasingly challenging environment as the global economy slows. Take for example Apple. Despite the positive reaction to Apple’s better-than-expected earnings, the facts remain that Apple’s revenue fell by 3% and free cash flow fell by 20%. Another sign of trouble was the increase in inventories which grew by 37%. Apple currently accounts for 7.3% of the S&P 500, the largest weight for a single stock in the index since 1980. Elsewhere within the technology sector, it’s important to note that the semiconductors, often viewed as a bellwether for tech in general, have recently fallen from #1 in Relative Strength to a recent low of #43. Samsung reported that profits fell by 95% as the chip division reported a $3.4 billion loss. And Intel reported its largest loss ever. Sector supply and demand are also providing some warning. Just a couple of weeks ago, there were 31 sectors controlled by demand. On Monday that number fell to only 13. So despite a stock market that remains trading near its YTD high, the underpinnings appear to be slipping. Finally, at the time of this writing, Monday's volume in the S&P 500 was the lowest of the year, so investors' convictions to chase prices much higher may also be diminishing. Now more than ever, it is important to have a disciplined approach to investing as the coming weeks will likely usher in increasing volatility. And we’ve got the perfect way to help you keep an eye on what is coming next… The team at Avalon is dedicated to seeing people succeed, so we send ADAPT every week with market insights from a responsible money management perspective – not just one-off stock ideas. If you’d like to hear more from the team and get a behind-the-scenes look at how Avalon is investing their clients’ money, [go here and sign up now](. It’s your only way to get intel on major shifts in the stock market and asset categories right to your inbox to help you make more informed investment decisions. Not to brag, but we sold our stocks and bonds back in April of 2022 and went into cash for a horrific couple of months – saving our clients incredible losses. The same goes for the shift to International Equities being on top in December… If you were subscribed to ADAPT, you would have been privy to those shifts too, and able to make moves for yourself to help you hedge against inflation and loss. [Click to subscribe and join us now]( – we look forward to talking to you more soon. DISCLAIMER: True Market Insiders sent this to you on behalf of a third party, Avalon, a registered investment advisor. Avalon and True Market Insiders are separate entities. Neither company owns the other. Both companies are owned by Chris Rowe. This article is an advertisement to sign up for a free e-letter called ADAPT, which is published by Avalon. True Market Insiders is NOT a registered investment advisor and is not licensed to give advice. 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