Duration: 2:53
Transcript:
Well, if you are looking at the headlines and getting a little bit worried, you are in good company.
There’s a lot of folks out there that are reading these headlines, whether it’s, the president of the United States speaking to Powell about lowering interest rates or if it is Powell speaking back to the president saying that it really needs to be an autonomous type atmosphere or tariffs, obviously, which we’ve already discussed or any other of numerous things, interest rates, stock markets, etcetera, you’re in good company if you’re a little concerned. I mean, the reality is is that everything seems to be continuing to get, hammered, for the lack of a better word, to where every day you come in and it’s almost desensitizing to see the market go down three hundred, four hundred, five hundred, in some cases, a thousand points.
The bond market, which we specialize in, we really continue to look at this as a history lesson. And as a history lesson, we look back and go, okay. What exactly happened in two thousand eight, two thousand and nine, or two thousand and ten when the bond market got creamed or COVID or, any other Meredith Whitney situation when sixty minutes came out? What we’ve learned from that is is that the bond market normally comes back relatively quick.
In addition to that, it comes back relatively hard, meaning quicker in price appreciation as opposed to, say, non price appreciation. And it is very well known that the bond market is continuing to say they always say the tail that wags the dolls dog, so to speak. The bond market is definitely showing you signs of perhaps a recessionary period coming.
We’re hearing all of these headlines about recession and what’s gonna happen and tariffs and so on and so forth. So what do you do really right now, and and how do you handle this? Talk to your financial adviser, whoever they might be. Figure out what your time horizon is.
Figure out what your risk profile is, and then put a plan of action into place. If you need liquidity, then maybe raise liquidity when the markets are stronger. If you have cash on the sidelines and you’re looking to buy equities or bonds or a mixture of both, then it’s probably in decent time to put some of that liquidity to work. We can’t call the bottom, and that’s not our job, and that’s not really what we’re trying to do.
But what we are trying to do is walk you through what’s going on in the markets.
Appreciate your time. Thank you for listening.
