Market Update: February 1, 2022 Three Good Recovery Days In A Row

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 Tuesday, the S&P 500 was up point 7%. Today, which is really good day, actually, we had those two huge days Friday and Monday, having another carry through day on the positive side is really, really good. Google just reported earnings after the market closed, jumped 4%, you know, after hours, because they beat their expectations seems to be the theme this quarter. As far as that goes, That’s what seems to be driving this market. A couple of studies that I’ll share with you I find kind of interesting. So Oxford Economics, you know, they went back to 1965, looking at the S&P 500. And the average downturn, when you don’t have a recession is 15.4%. When you do have a recession, it’s negative 36%. That’s been one of my key points during this whole timeframe is that you do get these downturns that happen. But you really need to watch the economy at the same time. Because when you get the combination of stock market’s going down and economy going down, you can get these bigger downturns that you might want to do something else about. But we’re not seeing that right now.

We’re seeing earnings go up very handsomely, this quarter. Obviously, that leading indicators were up, you know, in December, we’ve seen a few things slow down, travel and restaurants manufacturing member came out today, it was slower in January, it’s being blamed on the Omicron, you know, variant, keeping people home, that type of thing. So, you know, we have to watch for those things. But at the moment, we’re not seeing really any inflation, recessionary pressure, just a matter of what the Federal Reserve does, and how that plays out. Obviously, there’s some concern there, but we haven’t seen anything yet to show us that these things are translating into recession. Another study that came out from David costume with Goldman Sachs, I thought was really interesting. Go back to 1950. You look at the S&P 500. If you bought the S&P 500, when it was down 10%. In any point in time, even if it went down further, the average rate of return 12 months later was positive 15%. So I think that’s kind of interesting.

You know, we did our big rebalance the last one that we did last Monday, when the market came down really hard. And the market at that time was down about 10 to 12%, depending on whether you look at you know, the close or the intraday high and low. And that worked out very well so far, obviously. And so I think that’s kind of interesting all together. I believe, personally, that part of the education, of learning how to be a good investor is really to kind of understand the history, some of the things that have happened in the past, and understand, you know, all of the ramifications of that history so that you can make some decisions. You know, things do happen differently over a period of time, but you know, really, I’ve seen history kind of repeat itself fairly frequently within the stock market for the most part. So, another great day, look forward to seeing what’s going to happen tomorrow. It will be really fantastic to see another carry through. We’ve got over 100 companies in the S&P 500 reporting earnings this week. So Google’s kicked off a really nice one. So maybe we get some roll from that. So we’ll see what happens. Talk to you then. 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.