Market Update: March 8, 2022 Surprising Market Jump On News Of US Banning Russian Oil

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:

Hello everybody, welcome to Tuesday. The S&P 500 was down .7%. Today was really kind of a wild ride, it opened up down in the morning, and was kind of continuing the path that it had yesterday just a little bit slower on the downside. And then they announced that they were going to discontinue buying Russian oil and gas here in the US. And the market went from down about a half percent to up almost 2% In total, just straight up after that announcement, which is fascinating, because theoretically, if we cut back on oil and gas here that we’re purchasing from Russia, we’re still going to need that oil and gas. And so we have to go out and get it someplace else, or actually, US is producing an excess, we’re shipping some of that over. And so that just means that theoretically, there’ll be less, you know, supply that we could get to, and that would create potentially higher price and the cost of oil jumped almost $130 Today, based on that news. So it was very surprising to see the stock market go up based on that news. Because again, as the price of oil comes up, the potential for higher inflation comes up the potential for the Federal Reserve having to do more, you know, aggressive rate increases, increases. And then you know, obviously, long term, if it goes up high enough, there’s some potential for recession that fits into that. So it was very surprising to see how many how many market participants were excited about this scenario.

I will say during that period of time, when I looked at the other things that were doing really well, they were the same types of things that did really well in 2020, innovative technology, Clean Energy genomics and these types of things. I call these kinds of the Robin Hood stocks. So I think there’s a group out there, especially of younger investors that were very excited about the fact that, you know, if we cut back on this Russian oil, it might, you know, help the situation in Ukraine by putting more pressure on Russia, etc. Unfortunately, it didn’t hold up. And ultimately, there was some selling that came in and the market ended up down for the day. I do think we’re probably going to, you know, test a new low here pretty shortly. I’m actually ready to go with another rebalance. If that how it happens. You know, that’s just part of the process of this kind of unwinding situation in the stock market. Things are getting cheaper, earnings are still going up and prices coming down. The stocks are getting cheaper really by the day, every time nice things come down. So very interesting day, fascinating timeframe as usual. I look forward to seeing what’s going to happen tomorrow and we’ll talk to you about it then. Thank you

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.