Shelter-in-Place Stock Market Update 3.3.2021- The critical parts of portfolio design in this environment.

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 Wednesday, the S&P 500 was down 1.3% today, and it was a really interesting battle that was happening, we have three components in our portfolio model right now that are in the value category one was up, the other two are down just a little bit a lot better than the S&P 500. So that kind of shows you in a similar situation yesterday, shows you you know, what’s happening as far as you know, the growth versus value battle, Friday and last Friday, and this Monday, growth did fantastic, like just like it used to. And so we had a couple pieces that did well with that. But we’ve greatly reduced the growth components, just because there seems to be value, if you look at it kind of week by week, is really doing better than the growth. And I think things are turning over on the growth side, at least for the moment, a lot of profit taking going on and those types of things. We saw the bond market, you know, fall somewhere today, which of course brings the yields up. And again, those yields are competitive to the stock market. And that really kind of created some problems for the market as a whole. And yet, again, we’re seeing this rotation into the value side. Now we do have this inverse position in the portfolio, which was up about 1.3% today, and we have an energy position also, which is also a value position, actually, because energy was way, way down during the pandemic. And that was up almost one and a half percent today.

So I think the portfolio that we have was kind of these two growth pieces, which did poorly today. But they did great on Friday and Monday, we got this balance, I mean, it’s market is going you know, sideways and very volatile. And as I mentioned, it’s almost like different currents hitting each other and, and I love what we’ve got right now in our overall model. Now, we still have a lot more growth positions in the taxable accounts than we do in the you know, IRAs and Roth IRAs and those types of things. Just because we still have giant gains, a lot of those gains are short term gains, which is very expensive tax-wise, I do not recommend selling those positions, even though they suffered today and what have you, let’s wait and see what’s going to happen, you know, we won’t hold on to them forever if they continue to have trouble.

But you know, clean energy innovative technology, genomics, these aren’t going away. I think they’re just going to underperform for a while here. As people take some profits. Eventually, they’ll get down to a level potentially where people will buy them back. But if they’re really starting to fall apart, we’ll go ahead and take the gain. So but a lot of these we have 40, 50, 80% gains, on average, I don’t want to take those, you know, unless I really have to, you know, Apple, everything is in that category, actually. So, still holding on to those really fascinating timeframe. This isn’t really unusual portfolio design that I have right now, that I think is working great. And I’m just waiting for other things to kind of come along and signal what we should do. You know, if the growth keeps falling apart, that’ll trigger my stop losses. And we’ll move more into the valley or even into the inverses. And so, you know, I’ve got I build portfolios every single day for different directions every day. And I’ve got one that I’m looking at, I got a new pie chart, I got a new pie chart tomorrow. And so I’m constantly building these just in preparation for changes that are happening with the markets. And so it’s really, really different than it was you know, last year, for example, where there was so much consistency into these one areas, technology and health care and those types of things.

So look forward to seeing what’s gonna happen tomorrow. I find these situations very fascinating. I think we’re in a good spot. We’ve got some good, you know, pieces in place here. So hopefully we can keep you know kind of writing through this. So I will see you next tomorrow. 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.