Founded in 1992, Jackson Wealth Management is an independent, fee-only investment advisor. Founder George P. Jackson has been the CEO/CIO of the firm since its inception with the goal of delivering value to his clients and his associates. 

Securities Offered through Triad Advisors, LLC. Member FINRA/SIPC
Advisory services offered through Jackson Wealth Management, LLC. 
Jackson Wealth Management, LLC is an affiliate of Jackson Retirement Planning, Inc.
Jackson Wealth Management, LLC is not affiliated with Triad Advisors, LLC.

755 Primera Boulevard, Suite 1001

Lake Mary, Florida 32746

Fear and Panic

October 25, 2018

10/25/2018 11:55 AM

 

Dear Friends,

 

Fear

Below is a daily 2-year chart of the S&P 500 index in the top window, the VIX index is in the bottom window.

 

The CBOE Volatility Index, known by its ticker symbol VIX, is a popular measure of the stock market's expectation of volatility implied by S&P 500 index options, calculated and published by the Chicago Board Options Exchange (CBOE). It is colloquially referred to as the fear index or the fear gauge. (source: Wikipedia)

 

The good news:

  • Panic selling has occurred in the past few days, notice the spike in the VIX to the 25 level (blue line in the bottom window)

  • We saw that spike to 25 or greater in the VIX at the bottom of February and March corrections

  • From this gauge, perhaps the selling is nearly over

  • At the time I write this, the S&P500 index is up +41 at 2697.76 – that’s good news -- as we are currently holding above the 2692 support (yellow horizontal line below)

 

The bad news:

  • Yesterday the S&P 500 index closed below major support of 2692

  • That’s a bearish sign, if we fail to hold 2692, the next closing level of support is 2581, the closing low of February 8, 2018, about 4% lower from the current prices

 

What should you do?

  • Nothing – that’s a decision to stay the course

  • Dial down on your equity %

  • Dial up on your equity % -- or invest idle cash (that’s what I have been doing with my own money)

Call us with any questions – 800-578-3181x0

 

 

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