Stock Market Highs, Risks, and Uncertainty: Navigating Market Volatility

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Welcome to Something More with Chris Boyd.

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Chris Boyd is a Certified Financial Planner Practitioner

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and Senior Vice President and Financial Advisor at

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Wealth Enhancement Group, one of the nation's largest

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registered investment advisors.

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We call it Something More because we'd like

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to talk not only about those important dollar

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and cents issues, but also the quality of

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life issues that make the money matters matter.

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Here he is, your fulfillment facilitator, your partner

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in prosperity, advising clients on Cape Cod and

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across the country.

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Here's your host, Jay Christopher Boyd.

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All right, welcome.

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Thanks for being with us.

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I'm Chris Boyd.

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I'm here with Jeff Ferry and Russ Paul.

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We are all of the AMR team.

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Glad to have you with us for another

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episode of Something More.

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And today we're talking about markets and market

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risk.

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You know, as we continually bump up to

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new highs, people get very excited about stocks.

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It's good to have exposure to the growth

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in wealth that comes with equities, but there

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often is volatility and can be a risk.

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And so people are worried about when's the

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other shoe going to drop?

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What's going to cause markets to have a

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problem?

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And so, yeah, I think it's important for

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us to keep perspective.

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So we'll talk about some of these risks,

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but let's remember, one, most people don't have

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only stock.

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They have other investments too.

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Hopefully you have some reserves, so it's not

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every day of your investments in your portfolio

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percent to have some liquidity.

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And, you know, recognize that volatility is part

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of the process.

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We get benefit from participation over time.

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And what drives markets ultimately is the combination

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of things when it comes back to profitability.

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Are companies, broadly speaking, going to be more

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profitable or less profitable as we look into

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the future?

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And if we expect they're going to have

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increased profitability, we might expect to see performance

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of stocks grow, the market to grow.

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If we think that things are going to

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be disrupted for a while over time, that

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may change the way we think about the

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performance of stocks.

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I'm sure there's more that we can dig

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into, but let's start off, Jeff, a little

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bit about what we want to hit on,

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the risks that might be out there today

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that people might be focused on.

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Well, unfortunately, I think people are too focused

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on the risks by watching too much television,

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because, you know, you can watch the financial

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channels or the cable news channels, and it

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seems to be this unending risk news, right?

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So we have the risk of the government

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shutdown.

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I guess we just alert, right?

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At the breaking news, right?

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The music sounds, you know, like, oh, what's

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happening, you know?

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Do you remember the day when breaking news

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was actually something everybody ran to actually happen?

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You ran to the living room to say,

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what's going on in the world?

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A major world event is happening.

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And now it's just kind of what we're

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talking about today.

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Breaking news is not always breaking news.

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No, it isn't.

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But something that it's not breaking, it's actually

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37 days old.

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One of the risks that people are starting

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to calculate or attempt to measure, is it

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a risk to the stock market and investments

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is the government shutdown.

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We're in day 37 here and counting.

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There doesn't seem to be, you know, light

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at the end of the tunnel, at least

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not at the moment.

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And, you know, at first glance for the

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short shutdown, I think if you're a government

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employee, this is a whole different conversation, right?

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If you're a federal employee, you got to

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have that caveat, you're right.

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If you're someone whose job is disrupted, your

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cash, your paychecks are not coming in.

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It's a very different story than kind of

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everybody else who's not a government employee.

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Yeah, I don't want to come across as

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not being sympathetic to our federal employees and

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contractors and all the people that are related

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to this.

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But just from a broader perspective about risks

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to your portfolio, risk to the market, risk

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to the economy.

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I think when it started, the government shutdown,

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people assumed a week or two, de minimis,

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you know, not a big deal.

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We know that a lot of money that

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people get paid on isn't in the economy.

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But one paycheck that'll catch up, they get

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retroactive.

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But now, I don't know, Chris and Russ,

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if you see this differently, this is starting

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to mean something to the broader economy and

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could even mean more the longer it goes

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on.

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Russ, do you want to comment?

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Yeah, I mean, it's definitely longer than we

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probably thought when this all started and longer

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than a lot of people thought.

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Usually these government shutdowns are a couple weeks

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and then it's wrapped up, there's some kind

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of agreement, and at least things are kicked

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down the road a little bit.

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Not so much this time.

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I know President Trump was making some comments

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the other day after some of the wins

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for the Democratic Party in the elections.

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Was that yesterday or the day before?

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I can't remember.

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A couple days ago, yeah.

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But he was referencing the fact that he

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thought the government shutdown did have a negative

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impact on the Republican turnout.

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And it was sort of like, all right,

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I wonder what's going to happen out of

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this.

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Is this going to be more digging your

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heels in or looking to go to the

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negotiating table?

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So it remains to be seen, but the

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longer this goes, the more the market's going

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to get jittery, I would imagine, and start

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wondering, something's got to give here.

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The uncertainty of it all, I mean, it's

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uncertain because we don't know the end, but

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it's also uncertain on things that we rely

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on to gauge how the economy's doing.

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The federal government is the primary source of

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data, unemployment data, CPI data, so forth, all

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these things that the Bureau of Labor Statistics

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and individual regulatory agencies of the federal government

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report out as a normal course of business

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kind of guide people who are looking at

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the market and gauging whether or not the

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economy's strong, are we in a recession, is

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the Federal Reserve more likely to lower interest

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rates because of unemployment issues, et cetera.

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And so it's been a month and we

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don't have any of that data, so that

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leads to uncertainty and the market doesn't prefer

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uncertainty.

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And I know Fed Chair Powell is talking

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about, right now it's like we're driving a

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car down a foggy street, and there's not

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a lot of information.

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And he's definitely urging caution in terms of

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what the next Fed move is going to

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be.

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But that's a good analogy as to where

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things stand right now.

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It's hard to know when you don't have

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the barometers that you're used to.

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And there are some real points, too.

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What happens when you have that foggy environment?

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Things start to slow, right?

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You get more costs, and that happens in

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business as well.

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Either that or you drive off the road.

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Right?

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And it has some, not just uncertainty, but

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it has some real practical negative impacts on

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the economy.

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You think about companies or organizations that have

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to go for regulatory approval to do something,

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whether it's to permit something or to whatever

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it is.

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So much of these processes go through the

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federal government at some point, and that's just

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not functioning either.

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And so there's a backup building there.

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It's going to lead to a slowdown in

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those projects, which leads to a slowdown in

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hiring, et cetera.

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So I think the initial thought rests, I

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agree with you, a couple weeks.

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Now we're into day 37 and counting.

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And the longer it goes, the greater the

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financial economic impact it has to people and

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the uncertainty for the employees.

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And there's greater demands for help and assistance

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from people, for people like, and that throws

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off paying and spending, and there's a slowing

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effect in everyone as well.

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Yeah.

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One of our clients is one of the

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managers of a food bank down here.

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And through the Catholic Church, the church has

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their own food bank, but it's a very

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robust one serving more than the church, more

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than the parishioners.

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And he, I saw him the other day

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and he's just like, they are out straight

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with having to limit what people take because

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they can't feed the whole community and the

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church is putting in extra money and it's

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just, it's impacting that part of the economy

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as well.

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So, you know, they just, yep.

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And the, you know, it's a larger political

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question, but the 40 million people on SNAP

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benefits did not receive their benefit.

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And that money filtered its way into the

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economy.

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I mean, they spend it on perishables and,

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you know, food items primarily, and those purchases

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are not being made.

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And so does that affect certain industries?

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Of course it does.

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So that's one of the, one of the,

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you know, kind of right now risks to

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the market.

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That's, that's a tangible, I think that example,

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when you read it in terms of how

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this has some ripple effect, where I think

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a lot of these are things that we

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kind of don't see so much, but it's

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still there having an effect where it's not

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as, it's not as in front of us

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in the news as much.

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Yeah.

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Another market risk that I've been thinking about

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a lot is not directly related to the

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government shutdown, but tangentially it's certainly related and

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longer it goes is we're starting to see

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some cracks in the credit and debt issues

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of consumers before the shutdown, where more and

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more student loans are being in default.

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There's some cracks in the car loan numbers.

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You know, people are getting behind on those.

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I think before the government shutdown, it was

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probably related to, you know, pressures on inflation,

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such job fears.

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But this is all just going to magnify

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those credit and debt issues, I think.

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I agree.

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I mean, there's going to be a lot

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of people who are trying to fund their

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circumstances and the government shutdown with no paycheck

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or disrupted income with credit, this will have

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a prolonged consequence.

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Or not, or not paying credit that you

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already have.

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Or not paying credit you already have.

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Yeah.

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They're going into default.

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No, your student loan is pretty far down

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the list when you're trying to sit down

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00:11:45,680 --> 00:11:47,240
the table and keep the lights on.

272
00:11:47,520 --> 00:11:47,900
Right.

273
00:11:48,360 --> 00:11:49,340
And stay in your home.

274
00:11:49,880 --> 00:11:50,000
Yep.

275
00:11:50,680 --> 00:11:54,260
So all these negative things and kind of

276
00:11:54,260 --> 00:11:56,720
local things and things that might be part

277
00:11:56,720 --> 00:11:58,780
of the government shutdown are risks to the

278
00:11:58,780 --> 00:11:59,040
market.

279
00:11:59,220 --> 00:12:01,360
The market is, I don't know, maybe this

280
00:12:01,360 --> 00:12:03,100
week paying a little bit more attention to

281
00:12:03,100 --> 00:12:05,020
it seems to be some increased volatility.

282
00:12:05,940 --> 00:12:06,040
Yeah.

283
00:12:06,440 --> 00:12:07,340
Not the straight line.

284
00:12:08,480 --> 00:12:10,320
Well, we still have those things that always

285
00:12:10,320 --> 00:12:11,560
are risks to the market.

286
00:12:11,760 --> 00:12:16,040
And certainly in our news, global tensions, global

287
00:12:16,040 --> 00:12:19,940
issues certainly drive the market volatility positively or

288
00:12:19,940 --> 00:12:20,500
negatively.

289
00:12:23,420 --> 00:12:24,520
So I don't know.

290
00:12:24,580 --> 00:12:26,380
You think we're having improvements in the global

291
00:12:26,380 --> 00:12:28,700
risk to the market?

292
00:12:28,820 --> 00:12:31,520
We had President Trump kind of make a

293
00:12:31,520 --> 00:12:33,300
deal with China or at least a positive

294
00:12:33,300 --> 00:12:35,460
meeting, he seemed to have a good meeting

295
00:12:35,460 --> 00:12:37,580
with South Korea and Japan.

296
00:12:37,780 --> 00:12:38,080
Yeah.

297
00:12:38,440 --> 00:12:41,700
Certainly other parts, other countries as well, whether

298
00:12:41,700 --> 00:12:44,640
or not we had material improvement with China

299
00:12:44,640 --> 00:12:46,980
remains to be determined.

300
00:12:47,700 --> 00:12:50,840
But at least tonally, I guess you'd say

301
00:12:50,840 --> 00:12:51,780
there's improvement.

302
00:12:55,480 --> 00:12:55,640
Yeah.

303
00:12:55,760 --> 00:13:00,260
With other countries, we did get some furtherance

304
00:13:00,260 --> 00:13:01,680
of trade negotiations.

305
00:13:04,780 --> 00:13:08,820
I always forget the rarer of metals deals.

306
00:13:09,280 --> 00:13:10,400
It seems to be a positive.

307
00:13:10,680 --> 00:13:10,780
Yeah.

308
00:13:10,980 --> 00:13:11,320
Sure.

309
00:13:12,800 --> 00:13:14,840
So, you know, fingers crossed.

310
00:13:14,840 --> 00:13:21,720
I think broadly though, when you talk about

311
00:13:21,720 --> 00:13:30,100
global issues, there's always the uncertainty of tensions

312
00:13:30,100 --> 00:13:33,840
with countries and what will bubble up.

313
00:13:34,440 --> 00:13:37,780
We see some improvements, I'd say, in the

314
00:13:37,780 --> 00:13:38,500
Middle East, right?

315
00:13:39,300 --> 00:13:43,700
What's happened recently with the Gulf and so

316
00:13:43,700 --> 00:13:47,180
forth, seems to be moving in a more

317
00:13:47,180 --> 00:13:51,560
favorable direction with Palestine.

318
00:13:53,140 --> 00:13:59,260
With regard to Ukraine though, that remains really

319
00:13:59,260 --> 00:14:03,740
not in any kind of a better trajectory

320
00:14:03,740 --> 00:14:05,060
as we look at that.

321
00:14:06,520 --> 00:14:08,780
And then there's always the unknown.

322
00:14:09,620 --> 00:14:13,240
Well, one of those might be the military

323
00:14:13,240 --> 00:14:15,220
presence off the coast of Venezuela.

324
00:14:15,460 --> 00:14:17,840
That's increasing over the last week or two.

325
00:14:18,020 --> 00:14:20,880
I think the world's largest aircraft carrier is

326
00:14:20,880 --> 00:14:21,920
on its way down there.

327
00:14:22,180 --> 00:14:23,180
Yeah, the Gerald Ford.

328
00:14:23,880 --> 00:14:24,200
Right.

329
00:14:24,700 --> 00:14:26,240
So, you know, who knows what's going to

330
00:14:26,240 --> 00:14:26,700
happen there.

331
00:14:26,820 --> 00:14:30,860
But when you see troops amassing, it's never

332
00:14:30,860 --> 00:14:34,340
a good sign for the geopoliticals.

333
00:14:34,340 --> 00:14:38,420
I mean, that's a whole show in itself

334
00:14:38,420 --> 00:14:45,820
with the military action against civilian...

335
00:14:46,330 --> 00:14:49,420
Jeff, we've talked about this before, civilian...

336
00:14:49,420 --> 00:14:50,700
Narco-terrorists.

337
00:14:50,940 --> 00:14:51,340
Yeah.

338
00:14:51,480 --> 00:14:53,900
That's a term that we've applied to this.

339
00:14:55,240 --> 00:14:57,080
Perhaps, we think, right?

340
00:14:57,760 --> 00:15:00,080
If, you know, unproven, right?

341
00:15:02,480 --> 00:15:03,350
But, presumably...

342
00:15:03,700 --> 00:15:05,660
You have to label it something if you're

343
00:15:05,660 --> 00:15:06,220
going to kill it.

344
00:15:07,480 --> 00:15:08,120
You know what I mean?

345
00:15:08,360 --> 00:15:10,980
So, like, but the whole, like, is this

346
00:15:10,980 --> 00:15:11,700
lawful?

347
00:15:12,420 --> 00:15:15,900
You know, that affects, and then this idea

348
00:15:15,900 --> 00:15:19,380
that we're going to amass military might in

349
00:15:19,380 --> 00:15:23,260
a region with a country we're not at

350
00:15:23,260 --> 00:15:24,000
war with.

351
00:15:24,500 --> 00:15:29,140
Are we proactively going to invade or strike?

352
00:15:31,080 --> 00:15:33,120
Like, how are we that we don't have

353
00:15:33,120 --> 00:15:37,540
any kind of military, any declaration of war?

354
00:15:38,140 --> 00:15:38,340
Yeah.

355
00:15:38,600 --> 00:15:40,520
Actions do speak louder than words.

356
00:15:40,680 --> 00:15:43,480
The words indicated by the administration is no.

357
00:15:44,340 --> 00:15:45,880
That's no, we're not.

358
00:15:46,760 --> 00:15:50,040
But we're certainly flexing our military muscle in

359
00:15:50,040 --> 00:15:50,440
the region.

360
00:15:51,100 --> 00:15:53,160
And, you know, that can be appropriate as

361
00:15:53,160 --> 00:15:55,940
a tactic sometimes.

362
00:15:56,160 --> 00:15:57,460
Yeah, some kind of tactic.

363
00:15:57,640 --> 00:15:58,360
It can be.

364
00:15:59,440 --> 00:16:00,820
However, you know...

365
00:16:00,820 --> 00:16:02,480
It can also be a target and also...

366
00:16:03,040 --> 00:16:04,060
Well, that's where I'm going.

367
00:16:04,180 --> 00:16:06,200
At certain times in our history, us flexing

368
00:16:06,200 --> 00:16:11,500
our muscles has resulted in a response that

369
00:16:11,500 --> 00:16:12,520
should be expected.

370
00:16:12,640 --> 00:16:14,240
I mean, if you're flexing your muscles, somebody

371
00:16:14,240 --> 00:16:15,380
might punch in the nose.

372
00:16:16,220 --> 00:16:18,520
And then the response leads to a response

373
00:16:18,520 --> 00:16:19,360
and...

374
00:16:20,400 --> 00:16:20,860
Escalation.

375
00:16:21,200 --> 00:16:21,660
That's right.

376
00:16:22,180 --> 00:16:22,320
Yeah.

377
00:16:23,100 --> 00:16:25,080
You know, history is full of those things.

378
00:16:25,080 --> 00:16:28,820
So to your point, Russ, and then there's

379
00:16:28,820 --> 00:16:29,660
Venezuela, right?

380
00:16:29,720 --> 00:16:32,740
I mean, so who knows what the next

381
00:16:32,740 --> 00:16:33,300
thing is?

382
00:16:33,760 --> 00:16:33,860
Right.

383
00:16:34,480 --> 00:16:35,460
So, yeah.

384
00:16:37,220 --> 00:16:39,860
Other areas of unknowns and uncertainty that I

385
00:16:39,860 --> 00:16:44,020
think that can drastically affect the news cycle

386
00:16:44,020 --> 00:16:46,700
and most likely the market is the Supreme

387
00:16:46,700 --> 00:16:50,220
Court case that was heard this week challenging

388
00:16:50,220 --> 00:16:56,140
the president's unilateral tariff moves, if you will.

389
00:16:56,200 --> 00:16:58,000
In other words, does the president have the

390
00:16:58,000 --> 00:17:03,420
authority to start a tariff, institute a tariff

391
00:17:03,420 --> 00:17:06,060
on a foreign nation without congressional approval?

392
00:17:07,579 --> 00:17:11,160
If you're a student of history, you know

393
00:17:11,160 --> 00:17:11,900
it's been done before.

394
00:17:12,500 --> 00:17:15,619
If you're a student of the Constitution, you

395
00:17:15,619 --> 00:17:19,579
don't see that power in the Constitution.

396
00:17:19,579 --> 00:17:22,960
It is actually delegated to Congress.

397
00:17:24,359 --> 00:17:26,099
And, you know, the question is, and the

398
00:17:26,099 --> 00:17:28,820
justices, if you're listening to their questions, which

399
00:17:28,820 --> 00:17:32,060
were broad-based, broad-based meaning from the

400
00:17:32,060 --> 00:17:35,880
liberals and the conservatives on the court, is

401
00:17:35,880 --> 00:17:37,260
the tariff a tax?

402
00:17:37,260 --> 00:17:40,940
If a tariff is a tax, then the

403
00:17:40,940 --> 00:17:42,480
president cannot do it, I think is what

404
00:17:42,480 --> 00:17:46,240
they're struggling with, because Congress is the entity

405
00:17:46,240 --> 00:17:49,300
that creates taxes and regulates taxes, not the

406
00:17:49,300 --> 00:17:49,640
president.

407
00:17:50,620 --> 00:17:52,320
And so the big what if, I think,

408
00:17:52,540 --> 00:17:54,760
the prognosticators are starting to go down this

409
00:17:54,760 --> 00:17:57,480
road is if the Supreme Court overturns these

410
00:17:57,480 --> 00:18:00,280
tariffs based upon the lack of president authority

411
00:18:00,280 --> 00:18:03,120
and the bills that he's, the legislation that

412
00:18:03,120 --> 00:18:05,200
he's using as an excuse to do it

413
00:18:05,200 --> 00:18:07,820
has never been done for this as well,

414
00:18:08,260 --> 00:18:11,440
if those taxes are revoked, those tariffs, I

415
00:18:11,440 --> 00:18:16,860
guess I showed my opinion, are revoked, what

416
00:18:16,860 --> 00:18:17,220
happens?

417
00:18:17,300 --> 00:18:18,340
Do we have to pay back the money?

418
00:18:19,120 --> 00:18:21,460
And what does that mean to our debt

419
00:18:21,460 --> 00:18:24,180
and budget and, you know, all the things

420
00:18:24,180 --> 00:18:26,320
that are related to it?

421
00:18:26,360 --> 00:18:27,800
So I think that news.

422
00:18:28,680 --> 00:18:30,620
And I think the White House has been

423
00:18:30,620 --> 00:18:33,200
saying that if this is struck down, we'll

424
00:18:33,200 --> 00:18:37,160
just deem it a different, under a different

425
00:18:37,160 --> 00:18:41,900
power provided to the executive branch by the

426
00:18:41,900 --> 00:18:43,460
Congress.

427
00:18:43,980 --> 00:18:44,580
Well.

428
00:18:44,680 --> 00:18:47,180
And they'll just label it a different kind

429
00:18:47,180 --> 00:18:47,500
of.

430
00:18:48,120 --> 00:18:50,020
And then we're back to square one, it

431
00:18:50,020 --> 00:18:51,060
goes, start over.

432
00:18:51,900 --> 00:18:56,560
Yeah, you know, you can label a chicken

433
00:18:56,560 --> 00:18:58,460
a duck.

434
00:18:58,460 --> 00:19:00,580
I don't disagree with you, Jeff.

435
00:19:00,680 --> 00:19:01,560
Don't get me wrong.

436
00:19:01,800 --> 00:19:04,140
But I think that's the positioning that I've

437
00:19:04,140 --> 00:19:06,320
heard come out of the White House.

438
00:19:06,840 --> 00:19:10,080
Well, if that that's not approved, we'll just

439
00:19:10,080 --> 00:19:11,660
we'll do it in a different form.

440
00:19:12,360 --> 00:19:14,400
Well, I said on a previous episode, this

441
00:19:14,400 --> 00:19:16,460
is months ago and probably when it first

442
00:19:16,460 --> 00:19:19,940
came out, this issue anyway, is why doesn't

443
00:19:19,940 --> 00:19:22,980
the Republican Congress just pass a law giving

444
00:19:22,980 --> 00:19:25,800
the president authority to tariff up to, you

445
00:19:25,800 --> 00:19:27,080
know, whatever they decide?

446
00:19:27,080 --> 00:19:28,780
That would have made it would have made

447
00:19:28,780 --> 00:19:31,760
this case moot if the president then had

448
00:19:31,760 --> 00:19:32,180
authority.

449
00:19:32,400 --> 00:19:35,060
They could have argued about between Liberation Day

450
00:19:35,060 --> 00:19:36,260
and the passage of the law.

451
00:19:36,420 --> 00:19:37,260
Oh, yes.

452
00:19:37,260 --> 00:19:40,340
But I'm surprised that the Republicans didn't do

453
00:19:40,340 --> 00:19:40,720
that.

454
00:19:41,500 --> 00:19:44,700
And they could or and they could do

455
00:19:44,700 --> 00:19:46,160
it now or soon.

456
00:19:48,060 --> 00:19:50,000
They probably wouldn't get to pass the Senate.

457
00:19:50,100 --> 00:19:50,720
Another issue.

458
00:19:51,540 --> 00:19:54,180
You know, they could they could give the

459
00:19:54,180 --> 00:19:55,020
president authority.

460
00:19:55,220 --> 00:19:57,240
But, you know, a conservative court.

461
00:19:58,160 --> 00:20:01,080
Which this court is should be most interested

462
00:20:01,080 --> 00:20:04,320
in the four corners of the Constitution and

463
00:20:04,320 --> 00:20:07,160
limiting presidential authority, not expanding it.

464
00:20:07,960 --> 00:20:09,940
So I think that's where the case is

465
00:20:09,940 --> 00:20:12,720
going and what happens to the tariffs is

466
00:20:12,720 --> 00:20:13,020
open.

467
00:20:13,280 --> 00:20:15,800
I mean, the court could say, you know,

468
00:20:16,640 --> 00:20:17,680
effective today.

469
00:20:17,680 --> 00:20:21,660
You don't know, we didn't it wasn't clear

470
00:20:21,660 --> 00:20:23,460
that you didn't have the authority, blah, blah,

471
00:20:23,560 --> 00:20:23,760
blah.

472
00:20:24,100 --> 00:20:26,640
Starting today, you do not have the authority.

473
00:20:26,640 --> 00:20:27,940
So no, no further.

474
00:20:28,420 --> 00:20:29,880
But that's still going to it's going to

475
00:20:29,880 --> 00:20:30,620
impact the market.

476
00:20:30,840 --> 00:20:33,080
Arguably, if that was the decision, it could

477
00:20:33,080 --> 00:20:34,440
affect the market positively.

478
00:20:34,580 --> 00:20:34,820
Yeah.

479
00:20:35,420 --> 00:20:35,820
Right.

480
00:20:36,060 --> 00:20:39,380
You know, so it's not exactly a black

481
00:20:39,380 --> 00:20:41,000
swan, but it is an unknown.

482
00:20:41,520 --> 00:20:44,080
I don't know if you listen to any

483
00:20:44,080 --> 00:20:47,120
of that, Jeff, yesterday, but I had it

484
00:20:47,120 --> 00:20:48,600
on in the background and a lot of

485
00:20:48,600 --> 00:20:50,800
it was over my head because they're really

486
00:20:50,800 --> 00:20:53,160
getting in the in the weeds of of

487
00:20:53,160 --> 00:20:57,240
the language of the rules and all that.

488
00:20:57,380 --> 00:20:59,880
So but it did sound like they were

489
00:20:59,880 --> 00:21:04,740
leaning against the president, at least from the

490
00:21:04,740 --> 00:21:05,920
questions that were being asked.

491
00:21:06,200 --> 00:21:07,000
So I don't know.

492
00:21:07,040 --> 00:21:08,280
They'll be interesting to see how that plays

493
00:21:08,280 --> 00:21:08,580
out.

494
00:21:08,580 --> 00:21:10,060
It it did.

495
00:21:10,160 --> 00:21:12,000
But if you listen to listen to these

496
00:21:12,000 --> 00:21:14,180
cases for a long time, being a.

497
00:21:15,260 --> 00:21:17,860
Former Karen, I'm interested in this and constitutional

498
00:21:17,860 --> 00:21:21,420
issues sometimes you ask a question to maybe

499
00:21:21,420 --> 00:21:24,920
give your your side an opportunity to directly

500
00:21:24,920 --> 00:21:26,580
answer it for the other members of the

501
00:21:26,580 --> 00:21:26,800
court.

502
00:21:28,480 --> 00:21:29,440
But they did.

503
00:21:29,660 --> 00:21:30,860
If you just took them on the face

504
00:21:30,860 --> 00:21:32,600
value of the questions, it does not sound

505
00:21:32,600 --> 00:21:33,880
positive for the administration.

506
00:21:33,880 --> 00:21:34,440
Right.

507
00:21:35,400 --> 00:21:35,500
Yeah.

508
00:21:36,820 --> 00:21:39,400
You know, talking about market risk, one of

509
00:21:39,400 --> 00:21:42,240
the biggest things, you know, that I look

510
00:21:42,240 --> 00:21:45,520
at that I think about is, is this

511
00:21:45,520 --> 00:21:46,440
market too high?

512
00:21:46,440 --> 00:21:49,340
Like it's not a general market risk, like

513
00:21:49,340 --> 00:21:51,980
for, you know, forever.

514
00:21:52,240 --> 00:21:53,820
But is this moment in time?

515
00:21:54,400 --> 00:21:56,860
Is this market are the value of the

516
00:21:56,860 --> 00:22:01,460
valuations of this stock market, maybe especially the

517
00:22:01,460 --> 00:22:02,340
side of it?

518
00:22:02,580 --> 00:22:03,800
Are we too frothy?

519
00:22:03,800 --> 00:22:09,530
Well, I think that is a recurring question

520
00:22:09,530 --> 00:22:13,670
that keeps coming up when we look at.

521
00:22:14,130 --> 00:22:16,450
Typically, we talk in terms of price to

522
00:22:16,450 --> 00:22:18,810
earnings ratios, they seem extended.

523
00:22:19,310 --> 00:22:21,550
And I think this is a challenge to

524
00:22:21,550 --> 00:22:22,310
address.

525
00:22:23,830 --> 00:22:27,550
Brian does endeavor to address that for our

526
00:22:27,550 --> 00:22:28,470
clientele.

527
00:22:29,570 --> 00:22:34,950
He's made the case that one, the profitability

528
00:22:34,950 --> 00:22:39,310
prospects are very high and continue to grow

529
00:22:39,310 --> 00:22:43,250
at a rapid rate and can help to

530
00:22:43,250 --> 00:22:45,030
justify some of these numbers.

531
00:22:45,030 --> 00:22:50,070
I think that's one of the arguments people

532
00:22:50,070 --> 00:22:51,110
make.

533
00:22:51,410 --> 00:22:55,370
I think another he makes is this idea

534
00:22:55,370 --> 00:22:57,910
of a lot of these companies that multiples

535
00:22:57,910 --> 00:22:59,180
have recurring revenue.

536
00:23:02,500 --> 00:23:07,800
Subscription based revenue design, and that can justify

537
00:23:07,800 --> 00:23:10,580
higher multiple.

538
00:23:11,240 --> 00:23:14,220
And the idea that the market as a

539
00:23:14,220 --> 00:23:18,000
whole, its composition is very different.

540
00:23:18,460 --> 00:23:23,740
The kinds of companies, ways in which revenues

541
00:23:23,740 --> 00:23:28,660
are drawn to profitability is different than it

542
00:23:28,660 --> 00:23:29,160
used to be.

543
00:23:29,180 --> 00:23:34,980
And it is more, maybe with greater predictability

544
00:23:34,980 --> 00:23:40,460
and greater worthy of a higher multiple in

545
00:23:40,460 --> 00:23:41,100
some respects.

546
00:23:41,580 --> 00:23:44,840
We didn't talk about interest rates, but Brian

547
00:23:44,840 --> 00:23:45,600
certainly would.

548
00:23:45,600 --> 00:23:49,940
Where interest rates are is a factor in

549
00:23:49,940 --> 00:23:50,940
all of this as well.

550
00:23:51,060 --> 00:23:54,260
What's the alternative that we're comparing things to

551
00:23:54,260 --> 00:23:57,240
is part of that equation as to what

552
00:23:57,240 --> 00:24:01,200
I might consider a willingness to pay for

553
00:24:01,200 --> 00:24:01,560
a stock.

554
00:24:01,560 --> 00:24:08,300
So, a variety of inputs there.

555
00:24:08,560 --> 00:24:12,940
I think it remains a valid reality concern.

556
00:24:13,380 --> 00:24:16,860
Not to say that it's maybe as big

557
00:24:16,860 --> 00:24:18,780
a concern as we might think just by

558
00:24:18,780 --> 00:24:23,220
looking at the PE, but I think inevitably,

559
00:24:23,820 --> 00:24:27,180
no, we're always paying attention to market valuations.

560
00:24:29,000 --> 00:24:32,280
Certainly, today, I don't think you'd argue the

561
00:24:32,280 --> 00:24:33,680
market is cheap.

562
00:24:34,860 --> 00:24:39,340
And as an investor, you think about where

563
00:24:39,340 --> 00:24:41,580
you start the point from where you start.

564
00:24:41,920 --> 00:24:44,800
If you're putting new money to work, it's

565
00:24:44,800 --> 00:24:47,580
different from, hey, I've been enjoying the ride.

566
00:24:48,470 --> 00:24:53,400
You might have more tolerance as someone who's

567
00:24:53,400 --> 00:24:56,560
put money in a long time ago and

568
00:24:56,560 --> 00:24:57,380
had a good run.

569
00:24:58,800 --> 00:25:01,960
And with that, you give up some of

570
00:25:01,960 --> 00:25:03,940
the gains when it comes back eventually.

571
00:25:04,520 --> 00:25:08,000
Whereas if you're putting new money to work

572
00:25:08,000 --> 00:25:11,400
and you're buying in and then there's disruptions,

573
00:25:11,480 --> 00:25:13,880
it's a little more of a painful process.

574
00:25:13,880 --> 00:25:17,000
It could be a longer wait to get

575
00:25:17,000 --> 00:25:17,920
to the other side.

576
00:25:18,560 --> 00:25:20,320
Volatility is inevitable.

577
00:25:21,280 --> 00:25:26,100
And I think as an investor, we have

578
00:25:26,100 --> 00:25:30,660
to have that mindset that that's why we

579
00:25:30,660 --> 00:25:35,300
get better returns, we get greater compensation, because

580
00:25:35,300 --> 00:25:41,140
we take more tolerance for enduring bumps in

581
00:25:41,140 --> 00:25:42,660
the road, the ups and downs.

582
00:25:43,880 --> 00:25:45,860
And in consideration for that, we get better

583
00:25:45,860 --> 00:25:46,340
return.

584
00:26:18,780 --> 00:26:21,260
I agree with everything you said.

585
00:26:21,400 --> 00:26:24,240
And I generally agree with Brian's comments on

586
00:26:24,240 --> 00:26:27,020
this during our recent webinar that we had,

587
00:26:27,840 --> 00:26:29,900
which people can check out on YouTube.

588
00:26:30,160 --> 00:26:32,200
We have a version for non-clients on

589
00:26:32,200 --> 00:26:33,720
our webinar if they'd like to check that

590
00:26:33,720 --> 00:26:33,940
out.

591
00:26:34,440 --> 00:26:35,880
I'll throw the link in the show notes

592
00:26:35,880 --> 00:26:38,500
if people want to review that.

593
00:26:38,500 --> 00:26:42,040
With that in mind, maybe for next week,

594
00:26:42,240 --> 00:26:43,900
what we'll do is we'll have Brian come

595
00:26:43,900 --> 00:26:46,080
on and talk a little bit about this

596
00:26:46,080 --> 00:26:51,500
issue and others to really elaborate on the

597
00:26:51,500 --> 00:26:54,040
notion of where are we in the market

598
00:26:54,040 --> 00:26:56,260
and how do we deal with it as

599
00:26:56,260 --> 00:27:00,540
a firm and our strategies and our team

600
00:27:00,540 --> 00:27:03,540
and our clients' portfolios that we manage with

601
00:27:03,540 --> 00:27:04,180
discretion.

602
00:27:05,600 --> 00:27:07,640
We pay attention to a lot of these

603
00:27:07,640 --> 00:27:10,760
risks, and it doesn't mean that we're not

604
00:27:10,760 --> 00:27:14,600
positioning with these in mind.

605
00:27:15,560 --> 00:27:18,580
It's a very difficult scenario right now.

606
00:27:18,700 --> 00:27:20,400
On the one hand, you've got good things

607
00:27:20,400 --> 00:27:20,820
happening.

608
00:27:20,940 --> 00:27:22,480
On the other hand, we talk about some

609
00:27:22,480 --> 00:27:27,540
of the challenges that are stressing the markets.

610
00:27:28,860 --> 00:27:31,020
So how do you position?

611
00:27:31,560 --> 00:27:35,200
And Brian's taken a lot of effort in

612
00:27:35,200 --> 00:27:38,540
trying to position us both for enjoying some

613
00:27:38,540 --> 00:27:41,680
of the benefit while mitigating risk and having

614
00:27:41,680 --> 00:27:45,080
to do that with the winners, this sort

615
00:27:45,080 --> 00:27:46,820
of bifurcated possibility.

616
00:27:47,630 --> 00:27:51,540
We're making really broad comments about general views.

617
00:27:51,820 --> 00:27:55,200
This is a super individual analysis that we

618
00:27:55,200 --> 00:27:56,080
do for our clients.

619
00:27:56,420 --> 00:27:58,940
This is a different conversation depending on your

620
00:27:58,940 --> 00:27:59,680
time horizon.

621
00:28:00,020 --> 00:28:03,280
If you're in retirement and you're using some

622
00:28:03,280 --> 00:28:05,740
of these invested funds in the near future,

623
00:28:05,840 --> 00:28:07,600
this could be an opportunity to take some

624
00:28:07,600 --> 00:28:11,660
risk off and build your liquidity bucket so

625
00:28:11,660 --> 00:28:14,480
you have the cash in the event of

626
00:28:14,480 --> 00:28:15,660
a market downturn.

627
00:28:15,660 --> 00:28:18,500
Rebalance to your intended allocation.

628
00:28:18,780 --> 00:28:20,660
Maybe that's changed over time.

629
00:28:20,800 --> 00:28:25,760
When markets are relatively high, it's a good

630
00:28:25,760 --> 00:28:28,240
time to think about, do I want to

631
00:28:28,240 --> 00:28:30,880
take some money for next year's spending?

632
00:28:31,380 --> 00:28:34,420
Do I want to refill my buckets?

633
00:28:34,600 --> 00:28:35,620
Do I want to reallocate?

634
00:28:36,120 --> 00:28:37,220
These kind of things.

635
00:28:37,220 --> 00:28:39,340
And if you're on the other end of

636
00:28:39,340 --> 00:28:41,720
the spectrum, if you're Russ over here, in

637
00:28:41,720 --> 00:28:46,460
your accumulation phase and you are investing in

638
00:28:46,460 --> 00:28:48,420
your 401k or maybe adding some money to

639
00:28:48,420 --> 00:28:53,300
a brokerage account, the old adage, John Bogles,

640
00:28:53,520 --> 00:28:55,760
is it's time in the market and not

641
00:28:55,760 --> 00:28:56,800
timing the market.

642
00:28:56,800 --> 00:28:59,280
You just want to keep dollar cost averaging.

643
00:28:59,460 --> 00:29:00,620
You just want to keep contributing.

644
00:29:01,160 --> 00:29:02,780
You don't want to jump in and out

645
00:29:02,780 --> 00:29:03,800
because you're not going to do it at

646
00:29:03,800 --> 00:29:04,480
the right time.

647
00:29:04,600 --> 00:29:06,700
Nobody does that successfully long term.

648
00:29:07,620 --> 00:29:10,660
Unless there's market disruptions, who cares at that

649
00:29:10,660 --> 00:29:12,640
stage because you're buying.

650
00:29:13,040 --> 00:29:14,600
I remember rooting for them.

651
00:29:15,020 --> 00:29:18,540
And you're getting good deals when that happens.

652
00:29:19,120 --> 00:29:23,400
So today's stocks at yesterday's prices, that kind

653
00:29:23,400 --> 00:29:23,760
of thing.

654
00:29:24,380 --> 00:29:30,700
So for the younger investor, just ignore it.

655
00:29:31,700 --> 00:29:32,440
Right.

656
00:29:33,100 --> 00:29:34,020
Right.

657
00:29:34,520 --> 00:29:35,300
Yep.

658
00:29:35,620 --> 00:29:36,440
Bye bye bye.

659
00:29:36,440 --> 00:29:39,320
So, you know, this is a good example

660
00:29:39,320 --> 00:29:42,440
where, you know, a financial advisor, a trusted

661
00:29:42,440 --> 00:29:44,220
financial advisor that you work with, if you

662
00:29:44,220 --> 00:29:46,500
have these concerns, you talk to him or

663
00:29:46,500 --> 00:29:50,180
her about it because the issues that you

664
00:29:50,180 --> 00:29:53,460
noted, Chris, about liquidity and maybe you want

665
00:29:53,460 --> 00:29:54,380
to reduce your risk.

666
00:29:54,720 --> 00:29:55,860
You know, you can talk that out without

667
00:29:55,860 --> 00:29:57,400
making an emotional decision.

668
00:29:57,940 --> 00:30:00,120
Most of the decisions that people make when

669
00:30:00,120 --> 00:30:03,760
the market's up or down, you know, to

670
00:30:03,760 --> 00:30:05,440
the extremes of the wrong decisions.

671
00:30:07,080 --> 00:30:10,740
I mean, it's just the data on this

672
00:30:10,740 --> 00:30:12,600
is so clear that when the market's up,

673
00:30:13,000 --> 00:30:14,980
so many people say, get me some of

674
00:30:14,980 --> 00:30:15,240
that.

675
00:30:15,380 --> 00:30:16,740
And when the market's down, they say, get

676
00:30:16,740 --> 00:30:17,160
me out.

677
00:30:17,340 --> 00:30:19,060
And that, you know, might feel like an

678
00:30:19,060 --> 00:30:21,460
emotional survival technique.

679
00:30:22,580 --> 00:30:24,860
But it's, you know, greed and fear shouldn't

680
00:30:24,860 --> 00:30:25,800
drive your decisions.

681
00:30:26,340 --> 00:30:29,240
And that's where an advisor can really, you

682
00:30:29,240 --> 00:30:30,820
know, earn their keep by helping you walk

683
00:30:30,820 --> 00:30:32,780
through those and going through and having a

684
00:30:32,780 --> 00:30:35,860
financial plan that's written that you review and

685
00:30:35,860 --> 00:30:39,640
that helps you make these larger decisions without

686
00:30:39,640 --> 00:30:42,040
making a greed or fear decision.

687
00:30:43,040 --> 00:30:44,260
Well said.

688
00:30:45,540 --> 00:30:49,880
I think when you look at where we're

689
00:30:49,880 --> 00:30:56,100
at with markets, again, S&P 500s are

690
00:30:56,100 --> 00:31:00,020
up around 15% year to date.

691
00:31:01,080 --> 00:31:04,640
And then, you know, when you look at

692
00:31:04,640 --> 00:31:09,260
longer term numbers, they're extended in the sense

693
00:31:09,260 --> 00:31:16,050
of we're at rates of return that are

694
00:31:16,050 --> 00:31:19,050
higher than we would expect long term.

695
00:31:19,050 --> 00:31:21,630
You know, if you say, oh, looking back,

696
00:31:21,770 --> 00:31:23,490
you know, three or five years or something,

697
00:31:24,010 --> 00:31:27,510
your performance from the market is looking more

698
00:31:27,510 --> 00:31:32,830
appealing than it probably will forever.

699
00:31:33,150 --> 00:31:33,610
You know what I mean?

700
00:31:33,650 --> 00:31:36,450
Though, the long term returns from markets tend

701
00:31:36,450 --> 00:31:39,050
to be a little lower than what we're

702
00:31:39,050 --> 00:31:43,150
currently at for these rates of return, annualized

703
00:31:43,150 --> 00:31:43,970
rates of return.

704
00:31:44,660 --> 00:31:47,750
So that doesn't mean that there's necessarily a

705
00:31:47,750 --> 00:31:50,950
return to be the mean or whatever they

706
00:31:50,950 --> 00:31:52,170
were reverting to the mean.

707
00:31:52,350 --> 00:31:56,770
But I do think it is probably realistic

708
00:31:56,770 --> 00:31:59,250
to think of as long term averages are

709
00:31:59,250 --> 00:32:03,710
somewhere around 10% from stocks, we're averaging

710
00:32:03,710 --> 00:32:06,110
around 15 or whatever it might be.

711
00:32:07,170 --> 00:32:09,610
You know, you might expect that there's going

712
00:32:09,610 --> 00:32:11,110
to be some point.

713
00:32:13,590 --> 00:32:14,550
That's rational.

714
00:32:14,950 --> 00:32:15,050
Yep.

715
00:32:15,450 --> 00:32:17,570
I think people are so used to over

716
00:32:17,570 --> 00:32:19,490
the last three years, I mean, us included,

717
00:32:19,630 --> 00:32:21,390
I guess, and seeing the market go up

718
00:32:21,390 --> 00:32:23,930
and there are these little blips where there's

719
00:32:23,930 --> 00:32:27,110
like the liberation day or, you know, even

720
00:32:27,110 --> 00:32:29,050
COVID could be a big picture seen as

721
00:32:29,050 --> 00:32:30,270
a bit of a blip.

722
00:32:30,270 --> 00:32:35,150
The way the market bounced back and it's

723
00:32:35,150 --> 00:32:37,410
pretty much been a straight line up when

724
00:32:37,410 --> 00:32:39,490
you look at the chart, other than these

725
00:32:39,490 --> 00:32:44,530
minor one or two month periods since, you

726
00:32:44,530 --> 00:32:46,450
know, I guess after 2022.

727
00:32:46,450 --> 00:32:49,190
So we're used to these double digit returns.

728
00:32:49,190 --> 00:32:50,510
And I remember at the beginning of the

729
00:32:50,510 --> 00:32:52,130
year, we were looking at valuations and we

730
00:32:52,130 --> 00:32:54,610
were like, you know, looks pretty expensive.

731
00:32:55,570 --> 00:32:57,970
But, you know, if you were invested, you

732
00:32:57,970 --> 00:32:59,630
would have missed out on these, again, double

733
00:32:59,630 --> 00:33:03,610
digit returns, which were unlikely for three years

734
00:33:03,610 --> 00:33:04,030
in a row.

735
00:33:04,030 --> 00:33:06,450
But here we are, you know, there's still

736
00:33:06,450 --> 00:33:08,450
some time left in the year, but it

737
00:33:08,450 --> 00:33:11,370
just goes to show that trying to time

738
00:33:11,370 --> 00:33:13,110
these things and trying to make these decisions,

739
00:33:13,470 --> 00:33:16,630
you know, thinking you have some foresight, it's

740
00:33:16,630 --> 00:33:19,170
not a winning game now.

741
00:33:22,010 --> 00:33:24,610
You can't help but make parallels to the

742
00:33:24,610 --> 00:33:28,530
late 90s, though, at times because of these

743
00:33:28,530 --> 00:33:36,250
big return years, you know, you start to

744
00:33:36,250 --> 00:33:38,410
recollect some of that experience.

745
00:33:38,990 --> 00:33:39,090
Yep.

746
00:33:39,550 --> 00:33:39,970
And we do.

747
00:33:40,110 --> 00:33:43,130
It was the late 90s, the last time

748
00:33:43,130 --> 00:33:45,490
there were three consecutive years of double digit

749
00:33:45,490 --> 00:33:45,990
returns.

750
00:33:46,350 --> 00:33:49,270
So that was the leap to the early

751
00:33:49,270 --> 00:33:49,850
2000s.

752
00:33:50,770 --> 00:33:54,530
Yeah, but even that, I mean, people in

753
00:33:54,530 --> 00:33:58,670
that period of time, there were long periods

754
00:33:58,670 --> 00:34:00,670
of really good returns.

755
00:34:01,330 --> 00:34:06,810
And yes, you had 1998 Asian contagion or

756
00:34:06,810 --> 00:34:08,230
whatever all the time.

757
00:34:08,469 --> 00:34:11,190
There were disruptions within it, but there was

758
00:34:11,190 --> 00:34:17,370
a long period of time with extended favorable

759
00:34:17,370 --> 00:34:17,889
returns.

760
00:34:17,889 --> 00:34:19,590
And we could be in a period like

761
00:34:19,590 --> 00:34:23,570
that, where we have prolonged, you know, with

762
00:34:23,570 --> 00:34:28,929
this AI impact, the benefit of potential enhancement

763
00:34:28,929 --> 00:34:36,630
in productivity and profitability, that it could be

764
00:34:36,630 --> 00:34:37,370
consequential.

765
00:34:37,370 --> 00:34:39,870
You just have to be careful it doesn't

766
00:34:39,870 --> 00:34:42,590
get away from you as an investor that

767
00:34:42,590 --> 00:34:46,489
you're not so enamored of the returns that

768
00:34:46,489 --> 00:34:48,870
you are not attuned to the risks and

769
00:34:48,870 --> 00:34:52,270
not positioning in a way that your portfolio

770
00:34:52,270 --> 00:34:55,230
is ignoring the risks.

771
00:34:56,410 --> 00:34:59,650
You know, you think in terms of that

772
00:34:59,650 --> 00:35:03,190
period when there were even the value funds

773
00:35:03,190 --> 00:35:07,210
being gone heavily toward growth, you know, there

774
00:35:07,210 --> 00:35:13,210
was this discipline in the way things were

775
00:35:13,210 --> 00:35:13,830
structured.

776
00:35:14,490 --> 00:35:17,930
And so I think it's a reminder to

777
00:35:17,930 --> 00:35:19,610
learn from those lessons.

778
00:35:19,610 --> 00:35:25,570
One, you know, be vigilant that you do

779
00:35:25,570 --> 00:35:28,190
have to be mindful of making some liquidity,

780
00:35:28,890 --> 00:35:33,290
not overstating your risk tolerance in an effort

781
00:35:33,290 --> 00:35:35,870
to capture favorable returns.

782
00:35:36,830 --> 00:35:39,810
And being disciplined in the way you position

783
00:35:39,810 --> 00:35:43,430
your portfolio without going too far in one

784
00:35:43,430 --> 00:35:47,770
direction or another to be seeing the opportunity

785
00:35:47,770 --> 00:35:49,850
while at the same time you could be

786
00:35:49,850 --> 00:35:51,130
overstating risk.

787
00:35:52,530 --> 00:35:55,670
It's a challenging thing to do.

788
00:35:57,410 --> 00:35:59,410
So, well, that'll be a good thing for

789
00:35:59,410 --> 00:36:00,950
us to talk about again more in the

790
00:36:00,950 --> 00:36:01,590
future week.

791
00:36:02,570 --> 00:36:05,790
Jeff, were there other aspects that you're thinking

792
00:36:05,790 --> 00:36:07,910
of with the market risk or do we

793
00:36:07,910 --> 00:36:10,590
cover a lot of today's market risks that

794
00:36:10,590 --> 00:36:11,750
people are mindful of?

795
00:36:11,750 --> 00:36:14,030
Well, I think we could do another hour

796
00:36:14,030 --> 00:36:17,110
on different market risks, you know, inflation, interest

797
00:36:17,110 --> 00:36:18,470
rates and so forth.

798
00:36:18,550 --> 00:36:22,110
The job market and politics as a whole

799
00:36:22,110 --> 00:36:22,810
separate one.

800
00:36:23,450 --> 00:36:25,350
But I think we covered the ones that

801
00:36:25,350 --> 00:36:27,410
are on our minds right now from the

802
00:36:27,410 --> 00:36:29,890
government shutdown to the impacts of that, you

803
00:36:29,890 --> 00:36:34,090
know, downstream a bit and world events and

804
00:36:34,090 --> 00:36:34,610
so forth.

805
00:36:34,710 --> 00:36:36,930
I think we've covered enough risks for today.

806
00:36:36,930 --> 00:36:40,610
So I guess my takeaway for our listeners

807
00:36:40,610 --> 00:36:46,370
is there's always risks to be monitored.

808
00:36:47,310 --> 00:36:50,190
They can be on this macro level, what's

809
00:36:50,190 --> 00:36:52,370
happening in the world, what's happening in the

810
00:36:52,370 --> 00:36:54,750
economy, what's happening in the markets broadly.

811
00:36:54,750 --> 00:36:57,830
It can be on an investment specific level,

812
00:36:57,930 --> 00:37:00,230
what's happening with a particular company I own.

813
00:37:01,070 --> 00:37:03,890
Sometimes risks relate to things outside of your

814
00:37:03,890 --> 00:37:06,370
portfolio that relate to your own life and

815
00:37:06,370 --> 00:37:08,050
your potential needs.

816
00:37:08,790 --> 00:37:11,410
All of these variables are things that you

817
00:37:11,410 --> 00:37:15,330
may benefit from help in considering how do

818
00:37:15,330 --> 00:37:19,330
I prepare, how do I structure my portfolio,

819
00:37:19,590 --> 00:37:21,490
it should always be done in the context

820
00:37:21,490 --> 00:37:22,970
of the financial plan.

821
00:37:22,970 --> 00:37:26,190
And that financial plan helps you to prepare

822
00:37:26,190 --> 00:37:31,030
for the unforeseen with stress and the like.

823
00:37:31,650 --> 00:37:34,610
And if you don't have that happening with

824
00:37:34,610 --> 00:37:36,950
your current advisor or doing it on your

825
00:37:36,950 --> 00:37:40,430
own, and you might benefit from a little

826
00:37:40,430 --> 00:37:44,370
bit of help, either simplifying your portfolio, paying

827
00:37:44,370 --> 00:37:47,910
attention to tax strategies, all of the variables

828
00:37:47,910 --> 00:37:49,010
that we tend to.

829
00:37:49,010 --> 00:37:52,370
We are this group here, we take for

830
00:37:52,370 --> 00:37:54,810
granted because it's things we talk about with

831
00:37:54,810 --> 00:37:56,510
people all the time.

832
00:37:56,550 --> 00:37:59,950
But if you're finding some of these concerns

833
00:37:59,950 --> 00:38:02,490
resonate, it might be a good time to

834
00:38:02,490 --> 00:38:04,850
have a conversation and see if a second

835
00:38:04,850 --> 00:38:06,710
set of models can be a resource for

836
00:38:06,710 --> 00:38:09,450
you, help you navigate how to deal with

837
00:38:09,450 --> 00:38:09,670
these.

838
00:38:09,670 --> 00:38:13,070
So with that, we leave that door open

839
00:38:13,070 --> 00:38:14,930
and offered to our listeners.

840
00:38:15,590 --> 00:38:17,070
Certainly reach out to us.

841
00:38:17,270 --> 00:38:19,010
We can be out to you until next

842
00:38:19,010 --> 00:38:19,670
time.

843
00:38:19,830 --> 00:38:20,990
Keep striving for something.

844
00:38:22,270 --> 00:38:24,410
Thank you for listening to something more with

845
00:38:24,410 --> 00:38:25,110
Chris Boyd.

846
00:38:25,430 --> 00:38:27,570
Call us for help, whether it's for financial

847
00:38:27,570 --> 00:38:31,490
planning or portfolio management, insurance concerns, or those

848
00:38:31,490 --> 00:38:33,550
quality of life issues that make the money

849
00:38:33,550 --> 00:38:34,650
matters matter.

850
00:38:34,950 --> 00:38:36,010
Whatever's on your mind.

851
00:38:36,010 --> 00:38:39,890
Visit us at somethingmorewithchrisboyd.com or call us

852
00:38:39,890 --> 00:38:45,150
toll free at 866-771-8901.

853
00:38:45,250 --> 00:38:49,010
Or send us your questions to amr-info

854
00:38:49,010 --> 00:38:50,970
at wealthenhancement.com.

855
00:38:51,030 --> 00:38:53,070
You're listening to something more with Chris Boyd

856
00:38:53,070 --> 00:38:53,930
Financial Talk Show.

857
00:38:54,070 --> 00:38:56,530
Wealth Enhancement Advisory Services and Jay Christopher Boyd

858
00:38:56,530 --> 00:38:58,850
provide investment advice on an individual basis to

859
00:38:58,850 --> 00:38:59,390
clients only.

860
00:38:59,610 --> 00:39:01,550
Proper advice depends on a complete analysis of

861
00:39:01,550 --> 00:39:02,730
all facts and circumstances.

862
00:39:02,730 --> 00:39:04,830
The information given on this program is general

863
00:39:04,830 --> 00:39:06,850
financial comments and cannot be relied upon as

864
00:39:06,850 --> 00:39:08,430
pertaining to your specific situation.

865
00:39:08,650 --> 00:39:10,610
Wealth Enhancement Group cannot guarantee that using the

866
00:39:10,610 --> 00:39:12,610
information from this show will generate profits or

867
00:39:12,610 --> 00:39:13,730
ensure freedom from loss.

868
00:39:13,930 --> 00:39:16,090
Listeners should consult their own financial advisors or

869
00:39:16,090 --> 00:39:18,190
conduct their own due diligence before making any

870
00:39:18,190 --> 00:39:18,950
financial decisions.