Markets Have Second Consecutive Week of Losses; Investing Lessons from The Yom Kippur War

Key Takeaways

- S&P 500 closed at 4,432.99 down from 4,458.58 last week. The VIX again spiked just above 11% to settle under $21, just like last Frida

- There was a spike in bearish sentiment in the AAII survey and a lot of analysts have been turning negative on equities.

- Oil continued to show strength and settled well above $70 on Friday

- The data picture continued to be muddled on inflation. Consumer inflation expectations rose to a post-crisis record while the Consumer Price Index showed a slowdown in August
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Firstly, we’d like to wish a belated Happy Yom Kippur to all who celebrated it. This week we will be reflecting on how the IDF snatched victory from the jaws of defeat decades ago and how this epic struggle teaches lessons about investing. There’s a lot more wisdom here that can be applied to investing then you might think. As Mike Tyson once famously said, Everyone Has A Plan Until You’re Punched in The Face.

One group who is definitely dealing with a punched in the face moment is Chinese authorities with the Evergrande fiasco. For a party who controls the country on a trade-off of freedom for prosperity, a financial crisis can be a very serious wrench in the gears. Keep an eye out on how this situation pans out to...

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