Transcript:
So one common questions that come up in client means is my calendars down since game November, you know, should I be doing anything about this? Should I be preparing or doing something cutting back?
Yeah, exactly. So, you know, we hit a peak early November, it’s been a, you know, not a big drop, but it’s been a drop. And, and so people see that they get nervous about it, and what should I do those types of things. So number one is to make sure that that client, or you have the situation in place where you have the right amount of stock versus bond, you’re in the right risk realm. So if you look at that, and you get nervous about how much it moves down, then maybe you’re not in the right spot. So maybe once things settle down here, we’ve kind of settle into more bond and a little bit less stock. So that’s one of the first pieces.
Generally speaking, these little downturns that we have, these are normal, I mean, it’s the five to 15% downturns are happening pretty much constantly. And so I’m not too worried about it at that point in time, you know, I look at kind of that overall trend and how things are going, and things are still good. It’s sometimes it’s hard to convince ourselves that we’re still in an uptrend, when things are falling, you know, even for a couple of weeks. And there’s, of course, all the bad news out there just makes us really scared, which is why I do these positive Fridays, like I did today. Because at least it gives us some balance in the thought process, I think, you know, get your thoughts in a balanced position, where you understand the positives, to go with the negatives, including the negative of looking at your account and seeing that it fell, right.
Just understand that there’s, you know, whatever it is that that works for you, you know, for me watching insiders buy right now, wow, that’s pretty interesting stat. I mean, that, that, that means something to me, it helps me when I watch my accounts fall. And so you know, those types of things that are out there, in terms of cutting back what you’re taking out in those types of things. This is too small of a downturn to really make any adjustments at this point in time. Again, you know, talk to me at some point later, and we’ll see what happens. But right now, I would be, you know, kind of holding the course. And, you know, I will make adjustments to the portfolio’s as I see things that need to be done in terms of you know, what’s going on. But right now, things seem to be okay. As far as I’m concerned, I see enough positives to outset to, to kind of at least balance out some of the negatives, I do think it’s going to go down more from here, I just do just, you know, it gets a little momentum one way or another. This is what I call it counter cyclical trend.
So the major trend, you know, is up, but the counter cyclical trend right now is down, that could change. But I’d be really surprised. I mean, rates are still at zero, we’re still have stimulus coming in from the Federal Reserve. There’s just just so many positives, I think people are going to come in here and start snapping these things up, especially once they move that debt ceiling. And that is one issue that will continue to hold the market at you know, from from flying upward. Is that right? That worries the the major managers of money who manage risk first return Second, our got to be looking at that debt ceiling thinking okay, we need to see that thing move up and out, you know, as before, we’re really going to start running back into the area. And then again, I think earnings coming would help right because earnings are so fantastic and third quarter. I think so far everything we’ve seen says to me that things could be quite decent overall, individual companies can have trouble right. There’s no doubt but the overall market which is basically what we invest in for the most part is the overall market through these Exchange Traded Funds could do quite well. So anyway, that that would be my Outlook.