Transcript
Hello, everyone, Welcome to Tuesday. Well, we had a little bit of a down market today, the S&P 500 was down just a little bit over three quarters of 1%. And I learned something today that I think is valuable. And really, when you look at these markets, you know, on these down days, you know, what works and what doesn’t work. And what was interesting about today is all of those pieces that have been doing really well, the last couple weeks, that had been doing very poorly in the major portion of the downturn. Today, when there was a down market, they actually fell more than the market, just like they did back in late February, through mid March.
The stuff that held up, the stuff that we owned, for the most part stayed above the market. Some of it made money, and Apple was up almost 3.2%. Today, even the market was down. Some of it just lost less. And so sometimes that’s important, you know, just losing less, because then it allows you for recovery. So I do like that today was a little test. I don’t know if it’ll hold up if we have a big downturn, but that’s what I’m looking for trying to find those pieces that would hold up and still make some gains throughout the this volatile time that we’re in. One of the other things that is important to understand is that bonds went up today also. And although this is pretty standard, you know, the stock come down, bonds come up. That’s a normal relationship. That’s why we have bonds in the portfolio.
But we have had situations like in 2008, where they were both going down at a pretty fast rate. This particular downturn in this recovery has been much more traditional, and we’re seeing things that are happening. And so it is still important to focus on the bond portion of the portfolio. It really provides the parachute for when the stock market does come down. So I thought today was instructional and we learned some things today. And I want to thank you very much for watching. I look forward to talking to you tomorrow. Thank you.