Transcript:
Tom Vaughan:
Hello, everybody, welcome to Tuesday. The S&P 500 was down .7%, today. We had some retail sales numbers that came out, softer than expected; the market kind of fell from that information. Having said that, we need to have a little downturn here, in my opinion. It’s been a little while since we had the last one: A part of a healthy upward moving market, is to have these little counter cyclical trends, where the market comes down.
In the last 12 months, the primary trend is up tremendously. We’ve done really, really well, but we still had seven little downturns: Between 3% and 7%; in that same timeframe. So these are pretty normal, and it’s part of a healthy market. And one of the things I’m trying to get people to understand is just these downturns, there’s a whole bunch of things that happen. Number one, there’s an awful lot of information that comes from a downturn. For me, there’s way more information in these down days, than there is in these up days. So for example, I can tell what was holding up really well today: What did the market really like? Well, there was couple of main things that came up: Healthcare did very well today, and utilities also held up fairly well today, also.
Those are a couple of basics that I think are interesting; there’s some pieces that are pushing that. The Delta Variant probably helping pushing the healthcare and the infrastructure program, there’s gonna be a lot of money that go to electric utility; so that would be a reason that those are doing well. So it becomes much more clear… what’s going to work and what have you. But it’s also very important to have these little downturns, just to kind of let the steam off. Because if the market just gets carried away too far, then you end up with a much bigger downturn; before it finally is able to reestablish that trend.
And so I do like these little periods of time: I wouldn’t be surprised or worried, if this came down a bit more right now. A matter of fact, I think that would be healthy for what’s going on right now. It’ll set us up for a really nice run in the fall, or at the end of the year, however, that might work out. So anyway, look forward to seeing what’s going to happen tomorrow, and I will talk to you then. Thank you very much.