American Consequences - October 2019

On the flip side, if the bear market is coming, then you want to avoid financials, tech stocks, and the consumer-discretionary sector. It’s clear that holding safe sectors can pay off. In addition, gold is often referred to as a safe haven during bear markets. It makes sense... Gold is a physical asset and has been a store of value for thousands of years. Gold coins were minted for commerce beginning around 550 BC. No matter what happens to the economy, even if the banks collapse and our economic

structure goes down in spirals, gold will always have value. Investors like the safety of gold. The real knock against owning gold is that it’s not a productive asset. It doesn’t pay any yield. Your money just sits there, and that turns many folks away from it. But when the economy and the market start to become hazardous, owning gold helps investors sleep better at night. And since there’s only a finite supply of gold, a steady

Sector Performance During Bear Markets 7/16/1990 - 10/11/1990 7/17/1998 - 8/31/1998 3/24/2000 - 9/21/2001 1/4/2002 - 10/9/2002 10/9/2007 - 3/9/2009 4/29/2011 - 10/3/2011

Consumer Staples (22.8%) Health Care (10.3%)

Consumer Staples (-4.3%)

Consumer Staples (-31.2%) Health Care (-39.9%)

Utilities (-3%)

Utilities (-2.5%)

Utilities (-0.8%)

Consumer Staples (-6.9%) Telecom. (-10.7%)

Energy (-5.1%)

Telecom. (-10.3%)

Energy (-19.3%)

Telecom. (-8.6%)

Energy (-15.4%)

Utilities (6.4%)

Health Care (-21.7%)

Utilities (-45.9%)

Health Care (-13.3%) Consumer Staples (-14.1% )

Health Care (-16.3%) Consumer Staples (-1 6.8%)

Energy (-8.6%)

Materials (-25.9%)

Energy (-46.8%)

Health Care (-12.6%)

Financials (-11.6%)

S&P 500 (-27. 9%)

Telecom. (-50.7%)

Info. Tech. (-14.0%)

S&P 500 (-20.3%)

Materials (-1 8.8%)

Materials (-19.8%)

Financials (-30.7%) Consumer Disc. (-31. 4%) Industrials (-37.1%)

S&P 500 (-51. 8%)

S&P 500 (-15.8%) Consumer Disc. (-1 6.5%) Industrials (-26.8%)

Materials (-23.5%)

S&P 500 (-19.0%)

S&P 500 (-24.1% )

Info. Tech. (-53.0%) Consumer Disc. (-58.0%)

Industrials (-28.1%)

Industrials (-19.7%)

Industrials (-24.8%) Consumer Disc. (-34.9%) Telecom. (-44.4%)

Info. Tech. (-30.8%) Consumer Disc. (-31.6%) Financials (-33.4%)

Info. Tech. (-20.1%) Consumer Disc. (-20.7%) Financials (-28.6%)

Utilities (-47.0%)

Materials (-59.5%)

Energy (-28.4%)

Telecom. (-52.4%)

Industrials (-65.2%)

Materials (-29.4%)

Info. Tech. (-74.2%)

Info. Tech. (-55.0%)

Financials (-82.6%)

Financials (-31.1%)

Utilities Consumer Staples

Energy

Telecom Health Care

Materials

Financials

S&P 500 Info. Tech.

Consumer Disc.

Industrial

American Consequences

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