Market Update: April 18, 2022 Choppy Day As Market Waits For Earnings

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:

Everybody, welcome to Monday, the S&P 500 was down a grand total of point zero 2% today, so basically flat for the day. But it was a very choppy day, lots of up and down between, you know, positive and negative today, the markets waiting for earnings. In my opinion, we got a pretty busy week with a lot of earnings coming out. Only 7% of the S&P 500 has released earnings. So far. Having said that, of those 77% of those companies have exceeded their expectations so far. So that’s fantastic. So we’ll see how this plays out. We are taking a look at all kinds of different things in these earnings right now, you know, what are the margins are they being compressed by inflation, what’s the forward guidance, a lot of things that they can talk about their negative here with gas prices and inflation, wage, inflation and those types of things, supply chain issues out of China. So we’ll see how they talk about what’s going on in a forward motion. As far as that goes. We did see last quarter, the reports coming out the market was kind of choppy, nothing too spectacular until we got to kind of the tech earnings, they did a great job of delivering the earnings market made a little run in there, which was kind of nice. So we’ll see what happens this time, I suspect we will see some compression of you know, earnings over year over year compared to last year, just because we saw some decent earnings in the first quarter of last year. And so things probably won’t be flying up or down as much as they were. But still, you know, exceeding expectations, I think is somewhat important.

Remember the market is looking forward, you know, 6 to 18 months for the most part. So a lot of the expectations for where the earnings are right now have already been kind of priced into the market. And maybe about 75% of that gets priced in the other 25% is dealing with the reality of what actually gets reported or what actually happens and whatever that scenario might be. So, you know, oftentimes when you do exceed expectations and the expectations are priced in, you’ll get some run on that. Unless the forward guidance is just really negative. As far as that goes. We did see semiconductors run really hard today. Even though the market was kind of vacillating. They were up all day. Some very positive reports came out talking about the demand issues, things that I’ve been talking about for quite a while. But semiconductors have been struggling so far this year, we’ve been dollar cost averaging into them all the way through with these rebalancing pieces we do so hopefully that turns around and starts going and gets things moving courses, they report earnings that can help also because they do think they’re doing quite well. So nonetheless, interesting day, of course, this week is going to be more about what happens with the earnings most likely. So we’ll continue to talk about some of that but look forward to seeing what’s going to happen 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.