Market Update: October 13, 2021 Trying To Fix The Supply Chain

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.

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Transcript:

Tom Vaughan:

Hello, everybody, welcome to Wednesday. The S&P 500 was up .3%, today. A lot of green on the board today, actually. The NASDAQ was up. There was a lot of good things happening. Earnings that came out today, that started from some of the bigger companies, were at least decent altogether, and I do think that helped to kind of put a little floor in the market, you know, at the beginning of the day.


And then there was a White House press conference talking about trying to solve the supply chain issues, so we basically have big container ships sitting out in the ocean, and then they have to be offloaded, onto trucks, and sometimes on to rail or into warehouses, and the “last mile” type delivery places like UPS and those types of things. So, all of these are issues within the supply chain delivery system that we’re having trouble with, and apparently there are a lot of boats off the coast here in Southern California. Los Angeles and Long Beach are the two big ports there. Apparently about 40% of the volume of product that comes into the US comes through those two ports. And so what they were talking about today was essentially establishing the Amazon model.


So, Amazon got slammed at the beginning of the pandemic, because everybody started shopping online because, they couldn’t go to the store. And they couldn’t keep up. And I remember deliveries being pretty delayed for quite a while there. And they moved to a 24/7 model, where they just are working around the clock, they have different shifts, and seven days a week, and I’ve seen deliveries come on Sunday, and so that’s why that’s happening. And they want to start doing that with the ports, and apparently Long Beach has already started that. They’re trying to get Los Angeles into a spot where they can get to a 24/7 delivery. And UPS, Federal Express, Walmart, etc, have all agreed to go to a 24 seven process also. So they’re just trying to speed up this delivery of these products, especially as we head here into the Christmas season.


But here’s the most important thing, if you really think about it, and you look at what’s happening, one of the biggest reasons this is happening is because there’s this ginormous amount of demand. People are coming in and buying and buying. And we saw the same types of product shortages and inflationary pressures, after World War II and World War I. And again it’s the same thing: production had been removed and moved to something else, in that case World Wars. In our case, the pandemic in this time. And then as everybody comes back, and there’s this pent up demand to buy, and there’s a lot of money on the sidelines, it takes a while for the whole process to catch up, so that’s where that 24/7 would come into play to kind of allow that to happen.


And the market started to move on that too. And I think that’s a really big deal. It still doesn’t answer the labor issue. You know, it’s one thing to say, “Hey, we want to open up 24/7”, but then you got to get drivers, you got to get dock workers, or whatever it is that you’re trying to fill. And that’s not been easy, actually to get to get everybody in there. So you know, we’ll see how that plays out on the labor side, which may be the harder side to deal with.


But I think it’s really a great movement in the right direction as far as that goes. So very fascinating to see what’s gonna happen. We also saw today, Social Security was increased for the Cost of Living increase was announced today at 5.9%, which is of record going back 40 years. It’s a huge gain, actually. So that’ll start next year so kind of exciting. So anyway, I look forward to talking to you tomorrow and see what happens. 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.