Transcript
Hello, everybody, welcome to Tuesday, the S&P 500 was up a little bit more than 1.1% today, which is a really good day all together. And lots of things were green today, there was some pretty good breadth. The Value pieces that we have today did well, so we’re very happy with that. But there was also some other pieces that were really interesting today. And let me share this with you.
So this is a chart we’ve seen a few times. Now, this is from the Vanguard’s version of the S&P 500. So last year, and you can see we dropped and it came back up and what have you. But if I zoom in, we can kind of see what happened today. So today, you know, if you look here, we broke into a new category, we broke out of this range that we were in, and we hit an all-time high today, on something I was talking about last week, I think once we kind of break out and start running here that this could run. Because you know, again, low interest rates, and all these other things that are happening. And here’s here’s one of the things I’ve been thinking about. And let me back out again, which wrong way, I’m sorry, we look at the full year here. And we started, this is the 23rd. We started on the 22nd with this video series, and purposely I was focusing on the positive mainly because I have clients that you know, we’re dealing with the financial fear of the market coming down. And then of course, you know, the physical fear of catching the virus. And one of the things that happened here is that those people that did focus on the on the positive they won.
The correct path was the positive path. It’s a little bit what I’m trying to talk about for next year. My gut feel is that the correct path for next year will also be the positive path. And it could be a really positive path, depending on what happens. Now, one of the things you have to be careful of as an investor is not to go too hard on one side or the other. You don’t want to just focus on the negative, I read about some big money managers that had really poor rates of return this year, I think that’s because they had too much focus on the negative and not enough balance. You don’t want to only focus on the positive. And I know that seems like that’s what I’m always focusing on. But I’m just trying to kind of offset all this negative stuff that’s out there.
Personally, I try to stay very balanced, I try to have portfolios that will deal with the downside. Portfolios that deal with the upside. If things explode on the upside next year, you know, I want to have some plans for that if things fall apart, I want to have plans for that. But my point is to become a better investor, which is part of what we deal with here in this series, you need to focus on gathering positive data to go with your negative data that’s out there. It’s not that easy, it’s a lot harder to find the positive stuff that that you need to know in order to kind of create that balance that makes you a better investor. And so, you know, it’s kind of the basics of what we’re established here. As far as you know, this whole series goes. But I do think you know, that aspect is missing often times in people’s outlooks when they’re looking at their investing. And they’ll tend to be you know, underweight equities, or stocks, or, you know, out of the market and those types of things. So try to keep it balanced. Even in on the 22nd of March at that very bottom there, I was able to extract positive data and information that was there, it was really, really buried at that time.
There’s more positive information now, you know that the market is doing quite well. But that’s a big piece of becoming a good investor is that kind of positive part. So I’m going to work on you know, booking a trip I talked about that yesterday, I just had a great conversation with a client and asked me where I was going after my comments yesterday. And you know, I love Hawaii, and I think I’m going to try to book a trip in Hawaii. In her comments were really useful to me, because it’s not just the money, you know, they could get a discount or what have you. It’s just something to look forward to, which I’m really looking forward to at this point in time. So I hope everybody has a great evening, and let’s talk tomorrow and see where this market goes. Thank you.