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Enduring After the Pullback

Enduring After the Pullback

August 21, 2023

Welcome to The Gate Market Update, powered by The Cornerstone Financial Group Inc. Last week, we witnessed a significant downturn in both stocks and bonds, leading to heightened fear among many investors. In the current week, it's crucial to keep in mind that hasty decisions typically yield unfavorable outcomes. It's imperative to base your choices on facts and data, rather than succumbing to feelings and emotions. Today we will discuss a few significant data points that The Cornerstone Financial Group Inc is using to anchor them in these turbulent times.

In the bond market, we observe treasury yields resuming their upward trend this week, contributing to losses in bond funds. The 10-year treasury yield surged to 4.33% today, marking its highest point in over a decade. This development could present challenges for both individual consumers, who might face elevated mortgage rates and loan interests, and large corporations, which might struggle to issue bonds at low costs for financing purposes. These challenges could pose a threat for those who are heavily invested in securities unless something changes in the macroeconomic landscape

Furthermore, let's delve into the technical landscape of the markets. The S&P 500 has retraced below its 50-day moving average (50MA) and is now within its 61% Fibonacci retracement zone. For those unacquainted with these technical indicators, remember that the 50MA should ideally bolster upward momentum in this index, in conjunction with the 61% Fibonacci zone. Moreover, the small and mid-cap indices have descended to their 200-day moving averages (200MAs), representing one of the last support levels to watch before a more bearish outlook could materialize.

All these factors coalesce to indicate that our economy is poised at a critical juncture, warranting vigilant monitoring for potential buying opportunities, or alternatively, a selling opportunity should the data fail to improve in the near future.

Feel free to share your thoughts and questions in the comments below or email us at For more updates, Like and follow our page on Facebook or LinkedIn, The Cornerstone Financial Group Inc.

OneAscent Financial Services, LLC (“OAFS”), d/b/a The Cornerstone Financial Group, is a registered investment adviser with the United States Securities and Exchange Commission. OAFS does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by OAFS or any unaffiliated third party. OAFS is neither an attorney nor accountant, and no portion of the presented content should be interpreted as legal, accounting, or tax advice. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.