Here are the charts we are looking at this weekend.

The chart above is of the year 2004 for the SP500 (SPY). In 2004 the FED increased interest rates 5 times starting in June. You can see for the first 10 months of the year the market experienced a slow downtrend with whip-saw up and down action. This is not a forecast for 2022. We do not forecast. It is just a historic example of what might happen. This type of market is difficult for all traders and investors and something we need to be aware of.

The chart below is for $TNX. The 10 year Treasury Yield. You can see that interest rates are still in an uptrend and stayed above a key area of support this week (blue lines). For us, that means investments in sectors correlated to higher interest rates could outperform the SP500 going forward.

Also of importance, but not picture here the $VIX remained below 20 to close the week. Normally markets perform better when the VIX is below 20

Our V2 Model Newsletter was up this week.

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Distance=Victory

Chris

The V2 Model has gained an impressive 1,454%% from 2016 through 2021.

6X the performance of SP500 (2016-2021)

+83.27% 3-Year Annualized Returns (2019-2021)

+69.22% 5-Year Annualized Returns (2017-2021)

V2 Newsletter performance rank compared to all ETFs:

Top 10% 2021 (#243 out of 2867)

Top 1% 3-Year (#9 out of 1896)

Top 1% 5-Year (#4 out of 1896)

Market Data From Morningstar and Etrade.

We do not anticipate what is going to happen. We allocate based on where things are. We do not forecast, we follow the math and work to get on the right side of the next extended trend.

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V2 is a proprietary investment Model the results of which we make available in our newsletter. We give our holdings, changes before they occur, our allocations, and performance on an ongoing basis. You can discover more about the Model, our performance, and how it works by checking out our website.

We have researched and developed a pool of common and popular ETFs. We will select which ETFs to invest in based on market conditions and our short-term, medium-term, and long-term trends. We will also model asset class ratio behavior for our decision-making process. Leverage will be used when appropriate and we will short the market in a downturn. If no investments meet our rules, we will go to cash. We will change holdings at any time during the month.

The investment picks may be in large-cap growth, treasuries, leverage, derivatives. We may short the market or go to cash. Holdings may include SPXU, SDS, SH, SPY, SSO, UPRO, TLT, AGG, TQQQ, SQQQ, or CASH at any time.

Chris Vig is president of The Vig Company and is an investor, artist, author, business consultant and former CEO living in Monona, WI. This article is for entertainment purposes only. We may own, buy, or sell any security listed here at any time. Do your own diligence when investing your hard-earned cash. Follow The Vig Company on Facebook.

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Interest Rates and 2004.