Shelter-in-Place Stock Market Update 2.23.2021 How to navigate these rough stock market seas.

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

Hello, everybody, welcome to Tuesday, the S&P 500 was up .13%. Today, I had really rocky ride all together, actually it was down quite a bit at the open, bottomed out and eventually ended up for the day. Mostly, it seemed it was based on a run that happened right after the chairman of the Federal Reserve mentioned that they would continue to support the market by keeping rates low, they’d like to see unemployment be higher, they feel like the economy still needs help, and those types of things. So that was a good thing. As far as that goes, we still saw the kind of the growth type stocks, the clean energies and the artificial the artificial intelligence and innovative technology and those types of things had a down day for the day.

In my portfolio, right now, what we’ve done is we have these eight pieces for the stock portion. And so five of those eight pieces are currently in those growth areas online retail, innovative technology, you know, those types of things. And then the other three pieces are in these other areas, the broad stock market is one, the value piece of the large value piece I talked about yesterday, that was up again, today, broad market was basically zero today, which wasn’t too bad. And then the inverse piece, which was, you know, down a little bit because the S&P 500 was up.

But what’s happening right now, and I mentioned is just that we’re kind of in this rocky sea, you know, who’s gonna win, there’s like two different currents coming at each other, creating all of these problems. And so you’ve got this kind of value component, which, right at the moment looks pretty good. And then of course, you’ve got this old growth component. And it’s just fascinating to me, the news has been talking about how, you know, these technology, stocks are falling, because interest rates are going up. And there is an aspect to that, but a lot more of it has to do with the fact that a lot of these indexes are up 100 to 300% over the last 12 months. And, you know, as I mentioned before, you can only stretch their band so far, and it’s going to snap back. And it’s why we put in all these stop losses and kind of why we’ve had all these trades here. And I’m very happy with the rotation that we’ve done to kind of reset the portfolios, you know, we’ll have to wait and see what happens, who’s going to win.

And I like the inverse position in there right now because of the rocky sea that we’re at. And then we took the bond portion, of course, and, you know, we went into shorter term on the treasuries and, and high yields, and we still have our regular high yields. And the bonds did quite well, today, actually. So I was happy with that also, very fascinating timeframe to see who’s going to win here. If it continues, that the growth side, you know, continues to deteriorate or snap back even further, and I’ll make some adjustments, I’ll take one or two of those pieces out and, and move them over, you know, into either the inverse or more of the value side of the equation. Very simple to do, especially in the IRAs, we can do it very quickly and very easily.

I suspect that tomorrow, we might see an OK day, just because we had such a good run, at the end of the day, I felt like there was a bit of optimism built in there. And we saw some kind of snap back. Even in the growth area, there was a lot of buying that came in, it seems, at one point in time. So a little optimistic for tomorrow on that growth side, you know, we’ll see how that plays out. But, you know, I try to just have a plan for every day, you know, market goes up, this we’re gonna do market goes down. So we’re going to do, and, you know, I have an all my stop losses, and we’ll see what happens as far as that goes. But really fascinating timeframe. And I’m very interested in seeing what’s going to happen, you know, coming forward, we did make a few more adjustments to the taxable accounts today, again, because this morning, the market was down more, we were able to kind of sell off a few pieces that that we no longer have in our model, in order to, you know, take some write offs, which I like to do, and we put that towards pieces that are in the model.

So we’re always looking for that on the taxable side, on the, you know, the IRA and 401k. And, you know, Roth IRA side, we’re able to make those adjustments, you know, whenever we need to, because we don’t have to worry about the tax, but so really interesting timeframe, I’ve been waiting for this for a long time, I’ve been preparing for this for a long time. And I said before, you know, have a plan, execute that plan. I’m not trying to get too carried away, I’m not moving everything to value, you know, just because it’s moving. I’m not moving everything to growth, because it’s down, I want to try to buy more at some lower points. You know, I don’t do that. That’s, that’s we try to keep some balance here. And but I but I am saying that we need to react to what’s happening, which is this kind of rockiness put in that inverse to kind of stabilize things a little bit for a little bit, and we’ll see what happens.

I think a trend will emerge out of this a fairly rapidly, you know, in the next two to four weeks, I think we’ll really know where things are going. And we’ll be able to kind of get on that trend and not have so much in the way of transaction. So thank you very much for listening. I look forward to talking to you tomorrow.

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.