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Analyzing August’s Stock-Market Trends: Will the Stumble Transform into a Rout?

/ August 19, 2023

The drop in the American stock-market rally in August 2023 was anticipated. In a note on Friday morning, Tom Lee from Fundstrat stated that the S&P 500’s recent decrease of 5.6% over a 15-day period is a usual situation for August. Despite this, Lee, who is well-known for his positive outlook on the stock market, expects this decline to be temporary and connected to the month of August. In August, there are usually difficulties in the financial market, with high levels of unpredictability seen in the VIX reaching its highest point. Moreover, trading conditions tend to have low activity, particularly towards the end of the month, as the holiday season ends. The speaker states that stocks are being sold off due to several reasonable factors. These factors consist of a 50 basis point rise in the 10-year Treasury yield, causing it to reach its highest level in 15 years, the strengthening of the US dollar, and a long-awaited increase in the Cboe Volatility Index. Both the S&P 500 index and Nasdaq Composite suffered losses for the third week in a row on Friday. Additionally, the Dow Jones Industrial Average experienced a decline of 2.2% for the week. According to Lee’s definition, what conditions must be met in order for the slide to be classified as a significant decline, which is a 10% decrease leading to the S&P 500 reaching the level of 4,150? In order for the increase in yields to have a notable effect, Lee states that it would either have to present a risk of causing significant harm or require some other external disruption. Lee stated that he is not claiming that this is an impossible scenario. He gave an example to support his point, stating that if there is a sudden 10% rise in oil prices along with indications of increasing wages, it could potentially result in a larger decline in market value. The reason for this is that such factors might raise doubts among investors about the consistency of inflation reduction. Lee states that at present, inflation is not the primary worry for investors as their attention is primarily directed towards the rising bond yields, which have a detrimental impact on price-to-earnings ratios. They are also apprehensive about the prospect of a stronger U.S. economy, which could lead to the Federal Reserve implementing further interest rate hikes. Furthermore, Lee highlights the slight concerns among U.S. investors regarding weak economic data and property matters in China. Lee mentioned that there are signs in the market suggesting that stability may soon return. Firstly, he stated that the acceleration in the rate at which the 10-year yield is increasing is having a negative effect on stocks. However, it is not unusual for such abrupt increments to occur towards the end of a period when equities are being sold. He highlighted that the recent 50 basis point rise in the Treasury 10-year yield, which happened in just 21 days, is comparable to the increases in yield that were observed on September 23rd and March 2nd in the previous year. It is important to note that during those occasions, stocks reached their lowest point between 8 and 16 days later. Furthermore, the McClellan Oscillator reveals that there is currently an excess number of stocks, with a value of -50. This particular situation has only happened on 39 occasions since 1990. Lee’s analysis suggests that in 51% of these occurrences, stocks reached their lowest level within five days, while in 72% of cases, stocks reached their lowest level within 15 days. Lee proposed some dates that could hold importance for the future of the market. One of these dates is August 24th, which comes after Nvidia, a company that manufactures chips, discloses its financial performance for the second quarter. The outstanding outcomes that Nvidia achieved earlier in the year were understood to have sparked enthusiasm around artificial intelligence, ultimately causing a rise in the stocks of major technology companies. On Friday, August 25th, investors will be paying attention to Federal Reserve Chair Jerome Powell, who is scheduled to deliver a speech at the annual symposium of the Kansas City Fed in Jackson Hole, Wyoming. Lee remembered that Powell’s speech in Jackson Hole last year indicated the conclusion of a recovery for the S&P 500, resulting in a subsequent drop of 19% in stock prices over the ensuing eight weeks. He was unsure if stocks would see a 20% increase after this year’s Jackson Hole conference, but he admitted that unforeseen events could still happen. John PaulJohn Paul is the founder of DayTradeToWin, a trading education and software company established in 2008, supporting traders worldwide. His expertise focuses on price action-based futures trading strategies and structured market analysis. DayTradeToWin delivers trading education, indicators, and software tools designed to help traders apply disciplined, rule-based decision-making across global futures markets. He is the creator of multiple trading methodologies, including the Sonic System, Atlas Line, and Trade Scalper, which help traders identify structured opportunities in markets such as the E-mini S&P 500 (ES), Nasdaq (NQ), crude oil (CL), and gold (GC). Official website: https://daytradetowin.com daytradetowin.com

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New Day, New Hope: U.S. Stock Futures Rise, Focus on Walmart

/ August 17, 2023

On Thursday morning, the futures for U.S. stock indexes experienced a slight rise after previously reaching a six-week low, which was caused by the surge in bond yields. How are stock-index futures trading On Wednesday, there were declines in the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite. Specifically, the DJIA saw a drop of 181 points, the S&P 500 decreased by 34 points, and the Nasdaq Composite fell by 156 points. What is propelling the markets forward? The increase in bond yields has had an impact on the stock market, leading to uncertainty in the futures market. After the Federal Reserve released meeting minutes suggesting a possible increase in borrowing costs to manage inflation, government bond yields reached their highest level in 15 years. This caused the S&P 500 index to close at its lowest point in six weeks. As a result, investors are now reconsidering the timing of inflation concerns and whether higher interest rates will last longer than anticipated. Technology stocks, particularly the Nasdaq and S&P 500, have been heavily affected by the wave of selling due to their sensitivity to higher interest rates. Nonetheless, the overall market performance remains positive, with the Nasdaq up 29%, the S&P 500 up 15%, and the Dow Jones Industrial Average up 5% for the year. Cisco Systems, a manufacturer of network equipment, is anticipated to have a positive impact on the technology industry on Thursday as its stocks are predicted to rise by over 2% in the premarket. This follows the announcement of impressive quarterly earnings by the company, which were made public after the market closed on Wednesday. In the United States, there will be various economic updates on Thursday. These updates consist of two important events: the weekly report on initial jobless benefit claims as well as the August Philadelphia Fed manufacturing survey, both set to occur at 8:30 a.m. Eastern time. Furthermore, the leading economic indicators report is expected to be released at 10 a.m. on the same day. Mark Newton, Fundstrat’s head of technical strategy, advises keeping a close watch on Treasury yields, comparing it to the vigilant observation of a prey by a “Hawk-eye”. According to him, the recent rapid decline in stock prices coincided with both TNX and TYX surpassing the 4.00% mark. The TNX XX:TNX and TYX XX:TYX are the CBOE indices that indicate the yields of 10-year and 30-year Treasury bonds. Newton mentioned that the previously mentioned support level for SPX, ranging from 4350 to 4400, will be tested sooner than anticipated. Despite this decline, Newton remains confident that it is only a temporary setback and expects a resurgence in the market afterwards. However, it is possible that this rally will be postponed until after the Jackson Hole summit. The Jackson Hole Economic Symposium, which is expected to feature a speech from Federal Reserve Chair Jay Powell, has been planned for the dates of August 24th to 26th. Companies in focus John PaulJohn Paul is the founder of DayTradeToWin, a trading education and software company established in 2008, supporting traders worldwide. His expertise focuses on price action-based futures trading strategies and structured market analysis. DayTradeToWin delivers trading education, indicators, and software tools designed to help traders apply disciplined, rule-based decision-making across global futures markets. He is the creator of multiple trading methodologies, including the Sonic System, Atlas Line, and Trade Scalper, which help traders identify structured opportunities in markets such as the E-mini S&P 500 (ES), Nasdaq (NQ), crude oil (CL), and gold (GC). Official website: https://daytradetowin.com daytradetowin.com

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Trading Alert: S&P 500’s 50-Day Moving Average Break Could Spell Trouble

/ August 16, 2023

The index finished below the average for the first time in almost three years, ending its longest period of not dropping below since March. Based on the analysis of technical experts, it was observed that the S&P 500 ended below its 50-day moving average on Tuesday for the first time in a few months. This event suggests that there could be additional drops in the index, signaling that the ongoing decline in the stock market might persist over the summer. The SPX index reached its lowest point since July 11 on Tuesday, according to data from FactSet. It dropped by 51.86 points or 1.2% during the session, steadily decreasing throughout the day. As per Dow Jones Market Data, this occurrence holds significance as it marks the first time since March 28 that the index has fallen below its 50-day moving average. The 50-day moving average is closely observed as an indicator of momentum. Prior to this event, the index had maintained a streak of 96 consecutive closes above the 50-day, which was the longest period since a 102-session streak ended on September 17, 2020. As per technical analysts, the S&P 500 ended Tuesday below its 50-day moving average, a situation not seen since March. This suggests that the index may experience more losses, implying that the ongoing decline in the stock market may not have concluded yet. Based on information from FactSet, the SPX index finished Tuesday at 4,437.86, which was a decrease of 51.86 points or 1.2%. This closing level was the lowest it had been since July 11, as it continuously dropped throughout the session. Based on information from Dow Jones Market Data, the index recently fell below its 50-day moving average for the first time since March 28. This metric is important for measuring momentum. Prior to this, the index had maintained a streak of consistently closing above the 50-day average for 96 days, which was the longest streak since September 17, 2020, when a 102-session streak came to an end. Meanwhile, the Nasdaq 100 NDX, which has been the best-performing major stock index in the United States this year, faced a drop for the second straight week. This marks the first instance since December that the technology-focused Nasdaq 100 has encountered consecutive weekly losses. Experts have indicated that the recent fall below the 50-day threshold is a another indication that stocks are expected to face more downward movement in the near future. Katie Stockton, a market strategist and the creator of Fairlead Strategies, points out that several momentum indicators have deteriorated over the past few weeks as stock prices have fallen. Stockton, during a phone interview with MarketWatch on Tuesday, stated that he believes the ongoing corrective phase could extend for a considerable duration, potentially lasting a few weeks instead of multiple months. Additionally, there are individuals who agree with the aforementioned perspective. Market analysts express particular concern over historical seasonal trends that they anticipate will persist in exerting downward pressure on stocks until September concludes. Based on Dow Jones data, the S&P 500 historically performs poorly in September, making it the least favorable month for the index since 1928. This data is derived from analyzing returns before the index was established in 1957. On average, stocks tend to decline by over 1.1% during September. However, August is seen as an average month for the index, with a moderate gain of 0.67%. This positions August as the fifth-worst performing month. Momentum indicators like the 50-day and 200-day moving averages have consistently shown the market’s performance trend since the beginning of 2022. In the past year, whenever the S&P 500 reached or exceeded its 200-day moving average, it consistently faced a decline shortly afterward. Financial experts have strongly emphasized that there is still plenty of room for the S&P 500 to decrease substantially before they start worrying about the current upward trend being replaced by new record low levels. During a phone interview with MarketWatch, John Kosar, the chief market strategist at Asbury Research, expressed that there is significant possibility for a market downturn. Nonetheless, he also noted that the overall long-term trajectory remains steady. Ari Wald, the head of technical analysis at Oppenheimer & Co., and Kosar stated that the S&P 500 has a notable point of support at 4,325. This level is similar to the previous peaks seen in August 2022. In English, the paragraph can be paraphrased as follows: As stocks progress, it is anticipated that they will receive assistance when they reach 4,200. If the price continues to decrease, reaching 4,100 would be the ultimate threshold that may hinder any further decline. Yet, should the price fall below 4,100, analysts will need to reconsider the long-term pattern that initiated on October 12. On this date, FactSet reported that the S&P 500 hit its lowest closing point in a year, at 3,577.03. Experts opine that the recent fall in stock prices should not be seen as a setback, but rather as an opportunity for investors to acquire stocks at more favorable prices down the line. Kosar stated that the market had become too stretched, but he is optimistic about a decrease in excessive excitement in the market. He believes this will provide a good opportunity to buy during the fourth quarter. Undoubtedly, the rise in Treasury yields is making people in the financial hub of Wall Street anxious. If this continuing trend of higher long-term yields persists, it could result in situations that bring about a more substantial and intense drop in stock prices. The interest rate for the 10-year Treasury rose on Tuesday by 3.9 basis points, reaching 4.220%. This is the highest level it has been in around 10 months. Kosar mentioned that if the 10-year yield goes beyond 4.333%, the next level above it would be around 5%. This increase is unpredictable and creates uncertainty. The 4.333% mark is similar to the highest point the 10-year yield has reached in more than 15 years, which happened in October. John PaulJohn

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Timing Your Exit: Should You Pull Money Out of the Stock Market?

/ August 15, 2023

Investing can cause stress as we aim to make the best decisions for our future financial situation. However, it can be challenging to navigate through unpredictable market conditions. More specifically, individual investors frequently contemplate how they should respond during a market decline or when experts predict an approaching economic downturn. In times of uncertainty, you might consider transferring your investments from stocks and stock funds to cash. Nevertheless, whether or not you should make this decision depends on which part of your investment portfolio you are specifically referring to. When it comes to the portion of your investment portfolio that you utilize to pay for expenses, such as your child’s upcoming tuition bill, it might be prudent to convert those assets into cash. This is because if you are required to make a payment of $25,000 at the start of the following month, it would not be practical to have a balance of only $20,000. The word “cash” can encompass tangible money, such as funds in a bank account or a money market fund, as well as short-term bonds or bond funds that have stable values resembling cash. On the other hand, what about the money you have set aside for your future? What about the bank accounts you are utilizing to save for your retirement, which could still be many years or even decades in the future? Completely committing to holding cash is not a suitable strategy for this long-term portion of your investment portfolio. Should you consider selling your stocks when prices are decreasing? Why is it not advisable to withdraw money from the long-term portion of your investment portfolio? Instead, why not consider selling stocks and stock funds as a way to mitigate or avoid additional financial losses? Experienced investors, who may have grown used to changes in the market, still feel upset when the value of their investment portfolios goes down. However, it is crucial to distinguish between a decrease in value and actually losing money. The losses are only considered genuine and concrete when the investments are sold. Some investors think they can handle difficult market situations by selling their investments when prices are low and buying back when the market improves. However, accurately predicting the best time to enter or leave the market is very difficult, and even experienced experts often fail. This is especially true for investment funds. Sell High, Buy Low? Investors, especially those relying on funds like regular savers with retirement accounts, often make the error of selling their assets at low prices when trying to determine the optimal time to invest in the stock market. This not only results in incurring losses but also causes them to miss out on potential profits by not actively participating in the market during a rally. This is due to the fact that rallies typically commence without warning, causing individual investors to hesitate in getting back into the market. They worry that these fresh rallies are merely short-lived and have long been ridiculed as “dead-cat bounces” by investors. According to the Dalbar Quantitative Analysis of Investor Behavior report, the average stock investor had a 17.29% growth in 2020, indicating the reliability of the data. While this increase is not considered bad, it is slightly lower than the overall market growth of 18.40%. In 2021, the gap became wider as the average worth of stock investments among individual investors went up by 15.25% in the first six months. Nonetheless, this increase was lower than the overall market’s progress of 17.36%. Why the gap? According to Corey Clark, the Chief Marketing Officer at Dalbar, individual investors commonly make unwise choices when attempting to predict the market. They frequently sell stocks when their prices are at a low point and purchase them when prices are high. Furthermore, their decision-making is typically flawed, resulting in significantly greater losses compared to their gains. This implies that their main problem stems from making more incorrect predictions than accurate ones. Learning to Live With Volatility After any market decline, no matter how severe, the market always recovers its value. The same goes for properly diversified investment portfolios, as they also bounce back. Therefore, it is not beneficial to repeatedly enter and exit the market as it has a negative impact on your portfolio’s performance. Experts advise that individuals must acknowledge and embrace the fact that market volatility is a regular event in the stock market. They emphasize the importance of either enduring or reducing its impact to a manageable level. In the beginning of the 21st century, the S&P 500 Index experienced a substantial decrease in value of nearly 50% due to the bursting of the dot.com bubble. This was followed by the Great Recession, which occurred from 2007 to 2009 and led to an even larger drop of approximately 60% in the index’s value. In more recent times, the outbreak of the Covid-19 pandemic resulted in a swift decline of the S&P 500, with a decrease of 34% occurring within a single month in March 2020. Nevertheless, following each of those decreases and subsequent periods of declining stock prices, there was a subsequent rise. The S&P 500 not only rebounded but also surpassed previous high points. On average, since 1929, periods of declining markets have experienced decreases of 37.3%. Conversely, the subsequent periods of rising markets since 1921 have experienced average gains of 164%, as stated by Sam Stovall, the chief investment strategist at CRFA Research. The obvious conclusion is that individuals who maintain their investments for an extended period of time are given benefits by the market. Remain focused and maintain self-control, even in situations that are not easily foreseeable. It is clear that there are benefits to maintaining self-control and sticking to your plan when the market is unpredictable. However, many people struggle to bridge the gap between understanding what is correct and actually implementing the necessary steps. Research suggests that the pain resulting from monetary loss outweighs the pleasure derived from financial gains. Both emotions and

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Walking the Tightrope: How Tech Stocks’ Downturn Could Shake 2023’s Stock-Market Rally

/ August 13, 2023

The Nasdaq-100, being the leading performer among key U.S. stock indices this year, has just encountered its toughest two-week period since December, according to data from Dow Jones Market. On Friday, the tech-focused index ended a fortnight slide of 4.6%, dropping 100.77 points or 0.7%, to close at 15,028. This signifies the most significant loss since December 23 when the index witnessed a 5% retreat, according to Dow Jones Market Data. The latest information indicates a dip in the usually robust market momentum of surging technology stocks. According to a report from Wednesday, the widely tracked Invesco QQQ Trust Series 1 QQQ exchange-traded fund on the Nasdaq-100 index, for the first time since March 10, concluded below its 50-day moving average, as shown by FactSet data. The index has consistently finished below its moving average for three consecutive sessions. Technical analysts interpret this as a possible sign of the index’s gains in 2023 continuing to dwindle. Approximately 40% of the Nasdaq-100’s worth is composed of a handful of highly valuable large tech stocks. The diminishing strength of a number of these important stocks, which played a major role in the U.S. market’s rebound in 2023, is amplifying fears that the market may be edging towards a more substantial and possibly widespread sell-off. The shares of four prominent firms, referred to as the “Magnificent Seven” – Apple Inc., Nvidia Corp., Microsoft Corp., and Tesla Inc., all concluded the week below their 50-day moving averages. Experts infer that signs of a growing technology rundown may be subtly concealed within the market’s structure. BTIG’s chief technical analyst, Jonathan Krinsky, issued a research note to clients and the media on Thursday. In this note, he suggested that QQQ, along with several other tech-based ETFs, is coming close to a “volume pocket.” This implies these ETFs may face a swift decline in their value. A review of the volume-at-price data over the last three years indicates that a sustained decrease below $368 for QQQ might lead to its quicker liquidation. This prediction relies on previous volume-at-price analysis, a tool used by stock market specialists to find possible areas of support and resistance for a certain security. Krinsky conducted an examination of the trade volume of a particular security at diverse price levels within a set time period, utilizing the volume-at-price assessment. His investigation encompassed data from the last three years. In a phone interview with MarketWatch, Krinsky revealed that support and resistance mechanisms are dependent on the historical values of prices. He went on to explain that due to the participants’ incomplete memory of price ranges within these confines, there can be a faster rate of price fluctuations, Krinsky further discussed. Krinsky highlighted that QQQ experienced a roughly 16% increase over a period of six weeks from the end of April to mid-June. This substantial growth implies the risk of a potentially faster decline. As of the market close on Friday, QQQ has observed a 37.5% growth since the beginning of the year, a fact supported by FactSet data. Analysts have credited various factors for the retreat, including over-focused investment, overvalued high-performing stocks, rising treasury yields, and corporate earnings that failed to meet the lofty expectations of investors. Rising Treasury yields have heightened the stress on stocks, especially on high-performing tech stocks which are significantly vulnerable to fluctuations in interest rates. The main worry currently is whether the ongoing deterioration of Big Tech will pull the broader market down with it, or if other market segments will step up to offset this deficit. Here’s the thing: The significant recalibration that happened on Monday led to four major changes in the Nasdaq 100. James St. Aubin, the main investment director at Sierra Investment Management, indicated that it seems investors are content to divert their attention to other areas of the market that are not as significantly valued as the large tech companies. St. Aubin informed MarketWatch during a phone discussion that the leading participants are seeing a reduction in their lead, but the ones lagging behind are starting to close the gap. He added that it would be more concerning if funds were consistently being withdrawn and being reinvested in cash and bonds. U.S. stocks saw a minor uptick on Thursday, but couldn’t hold onto the majority of their early gains. The market got a lift initially when the July inflation data came out, matching economists’ forecasts. However, the President of the San Francisco Fed, Mary Daly, asserted that considerable efforts are still needed from the Fed to manage inflation. This resulted in higher Treasury yields, which caused a swift turnaround in the stock market. The S&P 500 SPX ended the day with a fall on Friday, marking a reduction of 4.78 points or 0.1%, finishing at 4,464.05. This signals the second week in a row of decreasing performance. The Nasdaq Composite COMP, which includes a broader selection of stocks than the Nasdaq-100, also experienced a descent of 93.14 points or 0.7%, concluding the day at 13,644.85. The Dow Jones Industrial Average (DJIA) experienced a positive growth, rising by 105.25 points, an increase of 0.3%, to reach 35,281.40. The 10-year Treasury yield BX:TMUBMUSD10Y experienced a significant increase last Friday, rising to 4.156%, its peak for the week, as shown by data from Dow Jones Market. John PaulJohn Paul is the founder of DayTradeToWin, a trading education and software company established in 2008, supporting traders worldwide. His expertise focuses on price action-based futures trading strategies and structured market analysis. DayTradeToWin delivers trading education, indicators, and software tools designed to help traders apply disciplined, rule-based decision-making across global futures markets. He is the creator of multiple trading methodologies, including the Sonic System, Atlas Line, and Trade Scalper, which help traders identify structured opportunities in markets such as the E-mini S&P 500 (ES), Nasdaq (NQ), crude oil (CL), and gold (GC). Official website: https://daytradetowin.com daytradetowin.com

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Baby Boomers and Stock-Market Risk: Striking the Perfect Portfolio Balance

/ August 11, 2023

As the baby boomer generation approaches retirement, a note of caution arises concerning their stock holdings. Presently, a significant 37% of baby boomers maintain a higher level of equity holdings than advised by Fidelity Investments for their life stage. This insight comes from Mike Shamrell, Fidelity’s Vice President of Thought Leadership. Baby boomers, born between 1946 and 1964, are either nearing or have already entered the retirement phase. The average proportion of equity in baby boomers’ Fidelity retirement accounts currently sits at 65.8% as of the second quarter, comfortably falling within Fidelity’s recommended equity range of 47% to 67%. However, a careful warning is extended to the 37% of baby boomers who carry a more significant exposure to equities. After recent market gains, these individuals should consider rebalancing, as recommended by Shamrell. The S&P 500 has recorded an increase of approximately 17% this year. Derek Pszenny, Co-Founder of Carolina Wealth Management, emphasizes the importance of retirees thoroughly assessing potential risks, including the risk of outliving their funds, inflation, and establishing a sustainable withdrawal rate from their retirement accounts. “Investing is dependent on time, not just age,” notes Pszenny. “The more you withdraw, the greater equity exposure is needed.” Fidelity’s recommended equity holdings offer a range within 10% of the Fidelity Equity Glide Path calculation. A tool is available to estimate the time until retirement and determine the suitable portfolio distribution for individuals nearing retirement. For example, if retirement is anticipated within a decade, the tool suggests that Fidelity Freedom 2035 currently holds 79% equity. This indicates that a portfolio with equity ranging from 69% to 89% would be considered appropriately aligned with the stock market based on the time until retirement. “These are suggested levels, tailored to individual uniqueness and distinct goals. These are recommendations,” clarifies Shamrell. “Take the time to assess and find the level that brings you peace of mind.” It’s important to note that many baby boomers may still possess pensions alongside their 401(k) plans and other investments such as real estate. Due to their entry into the workforce before the emergence of 401(k) accounts, auto-enrollment, and target-date funds, this demographic might find themselves less aligned with younger investors, as explained by Shamrell. Fidelity’s target-date funds extend an investor’s retirement plan throughout their lifetime, surpassing the actual retirement date. “Investors may experience 15, 20, or even more years of retirement. Preventing the depletion of savings prematurely is critical,” emphasizes Shamrell. A fundamental tenet within the realm of investments suggests that as investors approach their retirement goal, a gradual reduction in equity exposure is advisable. For baby boomers nearing retirement, this translates to a shift from stocks to bonds or cash, as outlined by the Vanguard Group, another investment advisory firm. “While age might impact the mix of asset allocation, it’s essential not to be swayed solely by averages and trends. There’s no universal formula for investors. To determine the optimal asset allocation mix, investors – irrespective of age – should factor in their goals, time horizon, and risk tolerance,” explains Nilay Gandhi, a Senior Wealth Adviser at Vanguard. “For investors deliberating when and how to pivot, consulting a financial adviser can be beneficial. Timing retirement can be intricate,” recommends Gandhi. For the typical retiree, Pszenny suggests an equities exposure ranging from 50% to 75%, accompanied by an annual withdrawal rate of 4% to 5%. “I’m quite confident that they can meet their retirement goal without depleting their savings,” Pszenny asserts. Pszenny raises concerns about target-date funds due to the common misconception surrounding the fund’s time frame – whether it guides individuals to their retirement date or spans their entire lifetime. “The most crucial investment decision revolves around asset allocation. Each individual should determine the quantity of equities they hold and how it’s allocated,” Pszenny concludes. John PaulJohn Paul is the founder of DayTradeToWin, a trading education and software company established in 2008, supporting traders worldwide. His expertise focuses on price action-based futures trading strategies and structured market analysis. DayTradeToWin delivers trading education, indicators, and software tools designed to help traders apply disciplined, rule-based decision-making across global futures markets. He is the creator of multiple trading methodologies, including the Sonic System, Atlas Line, and Trade Scalper, which help traders identify structured opportunities in markets such as the E-mini S&P 500 (ES), Nasdaq (NQ), crude oil (CL), and gold (GC). Official website: https://daytradetowin.com daytradetowin.com

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