Shelter-in-Place Stock Market Update 3.1.2021 – Do not use stock market predictions. Use this instead.

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.

Transcript

Well, hello, everybody, welcome to Monday, really fantastic day, today. Green shirt day all the way 2.4%. For the S&P 500, actually the best one-day return for the S&P 500 in the last nine months. And what’s really incredible is that I spent a vast majority of this weekend reading through all of these different pieces, looking at the data and what have you. And the majority of the consensus that was out there was that the market was going to be going down further, that you should be selling some of your stock gathering some cash or some short term bonds or those types of things. And you know, they might still be right. But it is sort of the difference between this kind of predictive concept and this reactive concept. And I think this is one of the keys to kind of my success with this. And let me show you, you know, kind of what, I’m talking about here, just a little bit more detail, give me an example.

So this is a great holding that we’ve had off and on for a long time. This is iBuy, which is online retail, it was up 4.4% today, but I have my alert, you know, stop loss signal right here. And you can see it got very close to that a few days ago. And it’s been bouncing around here to where where it was on Friday, you know, so obviously, it could have triggered through here, or I could have looked at this and followed all those articles and sold it this morning, to go into a more defensive position. But my methodology is to wait for things to trigger. Now, we did have a lot of things trigger a couple weeks ago, a lot of the Clean Energy pieces, and we did make changes. And you know, those fell further than where we got out. So I was pretty happy with those. But this you know, keeping here and holding on to this obviously worked out now maybe it falls back down. But reactive methodology, okay, just has a few basics.

Number one, have to let it come down some. So that’s the difference. If I was a predictor and good at it, I’d be out here or out here. Okay, but I don’t have that model. So reaction means I need to let it fall a little bit to see what kind of trend and then I pick some intelligent places where I see you know, volume, and what have you to put in these stop losses. And then past that the only other time I really want to react as if this thing just continues to underperform maybe go sideways for quite a while. I have other you know, waves to surf here that we can get on that might be more powerful. But this one is doing quite well right now at this time. So I do think that’s what kind of helps in these really crazy markets, you know, put in your lines in the sand. And when you’re positioned to get past that do react, have a plan, you know, go into the pieces already knew where I was going to put that money if that did get triggered. And if it doesn’t, right, just ride it and let it go. And until it really just kind of underperforms. If that happens, that’d be another reason to react.

So either falling down or are underperforming the market as a whole or some of these others are two reasons to react. The constant prediction portion, and this is what the news is got so much of an even I have to fight this constantly. And I’ll do little things, okay, when I see certain things, you know, I want to make little adjustments based on my own feels and predictions. But for the most part, I wait for the big things to happen based on what happens in a reactionary standpoint. So I do think it’s, you know, worthwhile today, especially to kind of point that out, it’s what keeps me out of trouble keeps me from running off into the wrong directions. You know, just draw your lines in the sand and figure out where you want to go, you know, when things do happen. And so we’ll see now today was very, very powerful. That’s super important. There should be some momentum behind this. And it was powerful because the bond market stabilized which is great.

I think they’re overdoing the inflation threat, you know, especially long term. But secondly, manufacturing had a two year, hit a two year high the report that came out today. So there’s like real economic fundamental reasons that the market is doing well. And I’ve been talking about 2021 being you know, a good year. So far, you know, kind of iffy, we’ll see what happens, but we have a long ways to go. And I still think the basics are here for what could be a fantastic year altogether. And you can see the power today and see the money coming in. Very, very powerful. So I look forward to seeing what’s gonna happen 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.