Shelter-in-Place Stock Market Update 11.18.2020 – Why the market went down today.

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

Everybody, welcome to Wednesday, I want to thank everybody who has come to the lunch with Tom, we did eight of them, we just finished the last one today for this year, kind of start them up again next year. Really fun, really enjoyed it. And I think everybody that did come to that, and look for notices of possibilities of joining us again next year. And so the S&P 500 was down today about 1.2%. It was sort of an interesting day, because it was hanging in there doing quite well up a little bit down a little bit, a lot like yesterday, actually kind of going sideways. And then it sold off right at the end of the day. And apparently it was a the same timeframe that they announced that the school districts in New York City were going to close.

Well, of course, Wall Street is, you know, the center of this universe in terms of the stock market. So they responded to that. It is the first time I’ve seen the market respond to the virus news, that’s obviously been picking up here. I’m not sure what that means, you know, honestly, because of the school district closing. So we’ll have to wait and see you know, what’s going on here as far as that goes. But the good thing for us, is that if you look at all of our broad indexes, and all of our target indexes that are in every one of our portfolios all together, wherever the risk is, whatever the strategy is, we have 35 of them. 31 of them did better than the S&P 500. Today, they didn’t all make money, but they did better than the S&P 500 today, which is really good. I love that.

Pretty much the same thing that happened yesterday, actually, too. And so as long as we just keep kind of overperforming, you know, we’ll be okay. If we take a look at kind of what happened today, you know, market wise, it’s kind of interesting. Here’s, you know, again, the S&P 500, as represented by Vanguard’s version of it, and we see, you know, we’ve kind of fallen back into this little range right here. I mentioned yesterday, it was quite important to hold this range, and we have broken through that. But one of the real problems is there’s just no volume up here, you know, the market hasn’t spent that much time here. And so there aren’t a lot of people that are willing to come back in and buy, the next level of any volume is right here, wouldn’t be surprised to see it kind of nibble around there, you can see that’s where this top was at some point in time. And so we’re watching for those support and resistance levels. And you know, at the moment, that’s not too bad, I’m okay with that. I really don’t see any real big issues happening here. You know, we’ve got zero interest rates.

And we’ve got an election that although it’s still not settled, is getting closer, I think a lot of the worst case scenarios there have kind of played out, there’s still some things to decide as far as that goes. But I think we’re okay, we’ve got, you know, good mixture between the technology or the future technology and the value orientation and the clean energy, very happy with that as the three legs of our stool, so to speak. And so I think things will, you know, kind of play their way out here. Expect some volatility, so we still have an election that’s, you know, still kind of playing his way out, we still have stimulus or no stimulus, you know, that’s gonna play its way out. We should have some rockiness here. But I wouldn’t expect to see any really, really big downturns or anything, you know, we’re ready if something does happen. But I would be surprised, and I would not be surprised to see it actually do quite well here. Continue to move up.

As far as that goes, you know, because the pieces are in place for that to happen on a historical basis. Anyway, we have had a phenomenal run in November. And so again, we’re kind of stretching that rubber band pretty far out. And you know, it’s bound to bounce back a little bit, hopefully, that stimulate some buying here at some point in time where people are coming in and get excited again. So let’s see what happens tomorrow. This is kind of an important week to see how much continuation we can get from this rally that we’ve had. So I will talk to you then. Thank you for listening.

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.