The Whole Tenor Of The Market Just Changed | New Harbor Financial
After weeks of relentless selling, sentiment is now damaged
After four weeks of relentless selling, the charter of the stock market has changed.
While a short-term bounce is likely here, sentiment is now damaged.
It will be harder for the market to race back to new highs, as investors start to price in a greater acceptance of the current risk factors.
The lead advisors at New Harbor Financial explain why, and reveal what they are doing in their client portfolios as a result.
For all the detail, click here or on the video below:
I’m so grateful to everyone who has kindly supported me by becoming a premium subscriber to this Substack. It’s making an important difference in helping me fund the substantial operating costs of running Thoughtful Money.
Premium supporters receive my “Adam’s Notes” summaries to the interviews I do, the wildly-popular MacroPass™ rotation of reports from esteemed experts, VIP discounts, plus periodic advance-viewing/exclusive content. My Adam’s Notes for this discussion with New Harbor are available to them below.
If you, too, would like to become a premium subscriber to this Substack (it’s only $0.52/day), then sign up now below:
Adam’s Notes: New Harbor Financial (recorded 3.13.25)
EXECUTIVE SUMMARY:
The S&P 500 officially entered correction territory this week, declining by approximately 10.3% from its recent high of 6,147.4. This drop has erased year-to-date gains, placing the index down around 5-7% for the year. Meanwhile, the Nasdaq 100 has fallen even more steeply, registering a decline between 12-14%. Momentum stocks have been hit particularly hard, with the IBD 50 ETF plummeting nearly 30% in a straight line, a rare occurrence that signals significant market stress.
Technical indicators suggest an unrelenting downward trend in the markets, with the S&P 500 experiencing four consecutive weeks of declines, an event that has occurred infrequently in the past decade. Historically, extended consecutive down weeks tend to increase the probability of further losses, with data showing that markets that remain weak for five or more weeks tend to underperform in the subsequent three to six months. The Nasdaq has shown similar weakness, breaking through key technical levels such as the 50-day and 200-day moving averages without any meaningful rebounds.
New Harbor Financial has implemented a disciplined risk management strategy, utilizing
