At the end of the 3rd quarter, just this past week, the S&P500 in the U.S. closed at the lowest levels of the 2022 calendar. The portfolio statements of the majority of investors aren’t looking very good and panic is setting in among many.

In my mind, the market leadership since 2008, has come from technology giants like Apple. Past market leaders fell hard this week, as its General took a direct shot with Apple being downgraded by a major US brokerage house and the stock fell almost 5% on Thursday alone.

When one bull market ends and another begins, it’s unusual that the leaders of the last bull market be the leaders of the next. Babe Ruth used to say “Yesterday’s home runs don’t win today’s ball games”

As the market continues to unravel, we’ll be looking to invest in new leaders poised to outperform in the next bull market. Perhaps our allocation to commodities and value stocks is showing signs of that leadership as we posted solid gains this past week, even in the face of weak equity markets. Keep calm and carry on.