The retest of the June lows has been messy, but was probably to be expected as 11 years of artificial markets are seeing their sunset. During the bottoming process, which started on May 11th, market players have not been looking forward and building out plans for real growth.
As you know my belief is that Climate Change will be a major driver going forward. In the early stage of the bottoming period we saw stocks being acquired by investors looking out to the horizon. Starting on September 19 we saw the FED make an extreme effort to counter its mistakes and through its followers initiate an attempt at a major crash. That effort concentrated on inflicting pain and took investors eyes off building a real growth portfolio. Below is a table that shows how the various sectors of the market acted during this period.
Both tables are sorted based on total performance over selected periods. The first period shows the performance over the broader period of the inflation high point of June 6, 2022 and the close last Friday as the bottom test ended. The four sectors highlighted in gold are the four that are part of the (EPCC) eureka-perspetives climate change model portfolio. We see that EPCC, did reasonably well for the whole bottom period. On the other hand the performance during the FED CRASH period of the last 25 days saw the model portfolio under extreme pressure.
There is a lot more to talk about in coming weeks as the market rolls out after the turning point. You will note that in the discussion above I have not talked about inflation or interest rates. That is because they are a result of the artificial period built by the FED and as time goes forward they will be less important. It is good that free money has ended and the current overkill of rates at 4.5 % will become history.