Shelter-in-Place Stock Market Update 2.9.2021 – When to cut your losses.

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 broke its six day winning streak was down 1.1%. Today, a six day winning streak is actually fairly unusual. So it was a really nice run. But luckily for us, we actually are on our seventh day winning streak with our accounts overall, over there were up about a half a percent, you know, across all accounts, again, every account is gonna be a little bit different, but very happy with that, you know, although the S&P 500 was down and the Dow was down, really the stocks and the holdings and the categories that we have, are still, you know, in favor, especially the 3D printing today, which did very well as of 2.6%, the Clean Energy areas, the innovative technology, all up over, you know, one and a half percent, good day all together. And so I’m very pleased with that.

Right now, again, it seems like things have gotten back to normal, the whole concept of this GameStop, and the shorting in the hedge funds, you know, is in the rearview mirror, I don’t know, that will, you know, be away from that forever, maybe it happens again. But a lot of that seems to be behind us, between the hedge funds, you know, moving away from some of the shorts on the smaller stocks, and the regulatory agencies coming in and trying to see, you know, what’s happening there also, it really, I think that is probably under control as far as that goes. And we always have to watch for, you know, what could be causing the next downturn, you know, for the most part, you won’t see it coming, if it’s a big downturn, that’s kind of how they work.

I’ve always used this analogy that, you know, if you’re walking down the street, and you know, somebody jumps behind a bush, and it’s dark, it scares you, versus, you know, if you know, that person’s behind the bush, it doesn’t scare you as much, which is why I said like, during the election, we might not see as much downturn, as everybody expects, because everybody was talking about it. So those things that are known, and now the hedge fund thing that’s known, etc, you know, could be something else that we’re not expecting. That’s why I think it’s pretty important to have the Stop Losses here. But the cash flow continues to go into these same categories. And I’m really excited about that, I have a process, you know, using these, you know, Signal Portfolios out of the spreadsheet, looking at that, you know, relative strength, motion, to find kind of what’s moving and where the money is going. Doesn’t work every time, I do have one philosophy, I don’t hold on to things that are doing poorly, for very long, sometimes, you know, week, four weeks, because usually, if I get in there, and it’s working like this 3D printing, we’re up, you know, nearly 10%, just in a very short period of time, we just started buying that on Friday. That’s working, right, that’s the right way to go. Whereas something that you know, falls right after I buy it, or what have you, I don’t really want to wait around and have it fall some more because there’s, it’s showing weakness that I really don’t want to have in the portfolio at that point in time. And again, it is a competition, you might have 5, 7, 10, 15 different pieces in your portfolio. And there’s 2300 different ETFs out there competing to get into your portfolio.

So if I have a piece that’s doing poorly, believe me, I have something else that I’m looking at that is doing quite well. And so I don’t really want to sit around and just wait for those things to fall, it creates a bit more transactions. Most of the times when I’m doing this, it’s inside of an IRA. So I don’t have to worry about you know, capital gains taxes. We don’t have commissions anymore on these transactions, either. So there doesn’t seem to be any real reason for me to kind of hang in there. I know. You know, sometimes it looks like there’s more transactions they need to be but it is working on the on the taxable accounts. You know, we’ve been making, you know, changes on those slowly but surely, we’re constantly working on those, those are custom. We have to go through them kind of one at a time and see what’s going to work see what the capital gain is, you know, what do we what are we moving into? Do we think it’s going to make more money. So a little bit of a different strategy for for taxable accounts and for tax deferred or tax free accounts like IRAs or Roth IRAs. So great day for us today, in my opinion, continuing the motion. Could be a good year. I hope so, so far has been and I look forward to talking to you tomorrow. Thank you very much.

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.