Shelter in Place Stock Market Update 3.12.2021 – Do I get nervous managing money?

Tom Vaughan is a Certified Portfolio Manager and CEO of Retirement Capital Strategies. Retirement Capital Strategies is a registered investment advisor located in San Jose, California.

The opinions voiced in these presentations are for general information only and are not intended to provide specific advice or recommendations for any individual(s). The information provided herein is obtained from sources believed to be reliable, but no reservation or warranty is made as to its accuracy or completeness. Statements and opinions are subject to change without notice. Asset allocation and portfolio diversification cannot assure or guarantee better performance and cannot eliminate the risk of investment losses. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. Accordingly, you should not rely solely on the information contained in these materials in making any investment decision as the material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned in this presentation. Before acting on information discussed in this presentation, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment advisor. Prospectuses, investment objectives, risks, charges and expenses of any investment product should be reviewed carefully before investing. This platform is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Retirement Capital Strategies and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Tom Vaughan or Retirement Capital Strategies unless a client service agreement is in place. “Likes” are not intended to be endorsements of our firm, our advisors or our services. Please be aware that while we monitor comments and “likes” left on this page, we do not endorse or necessarily share the same opinions expressed by site users. While we appreciate your comments and feedback please be aware that any form of testimony from current or past clients about their experience with our firm is strictly forbidden under current securities laws. Please honor our request to limit your posts to industry-related educational information, comments and questions. Third-party rankings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation. Investment positions mentioned in these videos may be held in some of our existing portfolios. Tom Vaughan and Retirement Capital Strategies are unaffiliated and separate from those companies whose investment positions are mentioned and is not liable for their products or services.

By participating in any of these live streams, you agree that any questions submitted by you might be used by us in the future on this YouTube channel. We will not share your personal information.

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Transcript

Hello, everybody, welcome to Friday, the S&P 500 was up .1%, which isn’t a lot, but it did hit an all time high today, which is kind of exciting. And the Dow hit an all time high today, and the Dow goes back to 1883. So that’s kind of a big deal to get to a high, the NASDAQ was down today, that’s more of our growth type stocks. As I mentioned yesterday, when you see the yields on bonds going up, which they went up today, you’ll probably see growth stocks go down and value stocks go up. That’s exactly what happened today, actually. And so I think, you know, going forward, we’re going to continue to see this hot potential economy coming at us between the stimulus and the pent up demand. And that’s going to make, you know, interest rates go up, which probably will make some trouble for the growth side, and then that leaves the value stocks. And so boy, we’ve seen a huge rotation, I mean, a big move over to that area. And, you know, some of those stocks are up nicely 10, 20%, you know, from their bottoms, but a lot of them are still you know, 10 to 15% off their highs from where they were prior to the pandemic. So there’s still some room to run there.

And again, I kind of like this arena, just because it’s I like the fact that these things are lower price compared to earnings, which I think is great. I’d like to address a question that came to me this week, that I thought was really interesting. And it’s just, you know, do you get nervous, you know, you’re managing the money for all of these clients? Do you get nervous about that? And it was, you know, had to think about it.

But no, the answer’s no, until you know why? Well, a couple of things. Number one, you know, I’ve been doing this for a long time. And so I’ve created a process that I have a lot of confidence in, you know, the whole, you know, predictive versus reactive and theme and trend, and, you know, all the different signal portfolios and all the things that I’ve done, and it’s still working for me, I still am getting where I want to go, we just rotated, you know, drastically from one side of the market all the way over the other. And, you know, in that in between times, we didn’t do that great in my opinion. But we’re doing better now, you know, compared to the market, and we off, we did awesome, you know, last year all together, too.

So I look at this, there’s 256 households, and I look at the you know, assets that I manage hundreds of millions of dollars, which in most cases is everything for each one of those households. And I look at that as a responsibility. It says a little bit different than nervousness. And I have a visual, when I look at and think about interesting enough is, every every one of the households I manage is kind of like a little fort. And then there’s a fence around that for to protect it. And that fence is the net worth. And our mission statement is to help our clients build and maintain their net worth. So what I’m trying to do is push that fence farther and farther away and build it taller and taller. In essence, building net worth and really four things that we try there.

Number one is Investor Education. So I think that’s super important, why I talk about this stuff all the time.

Number two is you know, financial planning and having a plan and knowing where you’re going to go. And then tax planning, huge part of net worth can disappear if we don’t handle our taxes the correct way.

And then of course, the last thing, which I work on a lot, also, of course is the investment management, all of those.

So I don’t feel nervous about that and trying to build this fence higher and farther away. I feel motivated. It’s what I look at is what I’m constantly read. So when I’m reading about Roth IRA conversions, or whatever it is, I’m thinking about, okay, how does this impact building that fence higher and farther away? And so it really nervousness does come in, you know, the markets fall, and I look at opportunity, I can see all kinds of things in those downturns. I learned a tremendous amount more usually in downturns than in upturns, and I can make some repositions and what have you.

So yeah, it’s it was it’s a really good question. But it hasn’t happened, you know, for me in that regard, for a long time, as far as that goes, but really, really fascinating market that we’re in here, never seen anything like it makes it interesting. But you know, I think we’re on the right path. I think we’ve made some good moves here. You know, we still have some growth stocks. They actually did fairly well this week, which is great. So we’ll see how that plays out. But let’s see what happens next week. I mean, this this trend that we’re going on here, and this little journey, I think is quite interesting. I find this situation to be fascinating. So I look forward to talking to you on Monday. Thank you very much.

Tom Vaughan is a Certified Portfolio Manager and CEO of Retirement Capital Strategies. Retirement Capital Strategies is a registered investment advisor located in San Jose, California.

The opinions voiced in these presentations are for general information only and are not intended to provide specific advice or recommendations for any individual(s). The information provided herein is obtained from sources believed to be reliable, but no reservation or warranty is made as to its accuracy or completeness. Statements and opinions are subject to change without notice. Asset allocation and portfolio diversification cannot assure or guarantee better performance and cannot eliminate the risk of investment losses. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. Accordingly, you should not rely solely on the information contained in these materials in making any investment decision as the material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned in this presentation. Before acting on information discussed in this presentation, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment advisor. Prospectuses, investment objectives, risks, charges and expenses of any investment product should be reviewed carefully before investing. This platform is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Retirement Capital Strategies and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Tom Vaughan or Retirement Capital Strategies unless a client service agreement is in place. “Likes” are not intended to be endorsements of our firm, our advisors or our services. Please be aware that while we monitor comments and “likes” left on this page, we do not endorse or necessarily share the same opinions expressed by site users. While we appreciate your comments and feedback please be aware that any form of testimony from current or past clients about their experience with our firm is strictly forbidden under current securities laws. Please honor our request to limit your posts to industry-related educational information, comments and questions. Third-party rankings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation. Investment positions mentioned in these videos may be held in some of our existing portfolios. Tom Vaughan and Retirement Capital Strategies are unaffiliated and separate from those companies whose investment positions are mentioned and is not liable for their products or services.

By participating in any of these live streams, you agree that any questions submitted by you might be used by us in the future on this YouTube channel. We will not share your personal information.

If you have questions, please write to us at: asktom@talkmoneywithtom.com.

  • MoneyGuidePro®
  • Advent Software/Black Diamond Reporting
  • Riskalyze, Inc.
  • thinkpipes®
  • Right Capital
  • YCharts, Inc.