Transcript:
Tom Vaughan:
everybody welcome to Monday, the S&P 500 was up point six 4%. Today, another all time record close, we had 69. all time record closes last year. So nice to start off the first day of this year. With another record close, we made some adjustments to the portfolios today. Lots of research that I did over the last couple of weeks of the year, we did a full rebalance added to the broad market indexes, S&P 500, the Vanguard Total Stock Market Index, etc. And then we bought some real estate, some semiconductors, index and some Apple. On the taxable accounts, I went through those one at a time and took, you know, some gains and what have you that I could, as far as that goes, made some adjustments to the portfolio’s just to kind of get those balance a little bit different kind of have to go through those by hand, one at a time. And we do that on a regular basis, and kind of work it towards the current models as far as that goes. And so anyway, things are going very well, very happy with what’s going on with the market right now. It is interesting how many all time highs we keep hitting, even though there’s so many things going on that are concerned to the market with the virus. With the different things happening with inflation, the Federal Reserve cutting back on stimulus at the market continues to go. As far as that goes. I want to ask one answer.
One quick question here. Actually, that came up I thought was interesting. You know, why should I have bonds in the portfolio if they’re doing so poorly, which is true, in fact, they did pretty poorly today also, the one reason is because, you know, for the most part, we make most of our money as regular people like we are from stocks and real estate. And so one of the ways to kind of protect the stock market portions of our portfolio is to have some bonds. When the stock market comes down, oftentimes bonds go up, especially certain types of bonds. So your government treasury type bonds, 58% of my overall portfolio that’s in bonds is in Treasury type bonds. And 70% is in triple A rated type bonds, you’ll see a flight to quality if the stock market comes down. I call it a parachute. So you know, if the markets coming down, you’ve got a parachute that’s deployed. And even though it’s not doing well, it’s still important to have that parachute in line ready to go just in case something does happen. So I think the bond market portion of the portfolio is super important. I spent a lot of time on it. I want to make sure as much as possible that we can make some money and we actually did fairly well last year comparison to a poor bond market and but more importantly, just that we have that parachute in place. So there was some rebalancing in the bond portions also so good. I look forward to seeing you tomorrow and that we’ll see what’s happening then. Thank you.