Duration: 3:48
Transcript:
Well, we all know that the market really hates uncertainty. I think everybody does, really, when it comes down to it. But when we’re talking about the markets itself, what do you do now, and and and where are we, and what is the market actually telling you? From a standpoint of uncertainty, let’s go back. We’ve talked about tariffs. We’ve spoke about interest rates. We spoke about, obviously, equities.
No one really knows what’s going on.
One person can come out and say the Fed is gonna cut, say, two or three or four times in twenty twenty five, and just in the same breath, another person says maybe one or two cuts. The Fed, of course, is going back and forth with the administration, but let’s drill down into really what you do now and how do you do it and what really should you be looking at. Number one, what is your time horizon? Is your time horizon ten years, five years, twenty years?
Whatever your time horizon is, Look at value equities or value bonds, from the standpoint of high quality insured municipals such as stuff we trade or any type of maybe some strong corporates for an IRA tax deferred account. What is your risk profile? That’s another one that’s big. What type of risk can you have in your overall portfolio, not necessarily on a one off basis, but as compared to other items in your account, in your overall basket of securities.
Do you have a lot of riskier things now? You might wanna offset with something, say, a high grade municipal bond. If you have a lot of high grade stuff in your account, you might consider putting something else in your account to offset that. So from a risk reward balance point of view, look at what you’ve got, talk to your financial advisor, speak to us, have a feel of what really the risk is underneath that asset, whatever that asset might be.
And then lastly, what kind of capital do you have? What kind of liquidity do you need? If you need a lot of liquidity in the future, near term, probably best to sit tight. If you don’t need a lot of liquidity in near term, maybe it’s good to start maybe what we call legging into the market, taking little bits and pieces of what’s going on in the market.
In other words, buying small pieces, putting them in your account. If it goes down, just continue to average down. If it goes upgrade, at least you’ve got some stocks or bonds or whatever you might be in your account at these levels. Again, going back to the top, no one likes uncertainty.
We are in a unprecedented time, in my opinion, where we’ve got the administration fighting with the fed, the administration doing something from a tariff standpoint, the fed saying we need to stay autonomous from one another. You’ve got people out there thinking interest rates should go lower, etcetera, etcetera, etcetera. So with all of this said, take inventory of what you’ve got. Take inventory of your time horizon, your liquidity, you know, whatever you need out of life.
Take inventory of that, and then use that as a leverage to buy paper, whether it’s bonds or stocks or whatever it might be, so you can take advantage of these situations. Again, we’ve traded through this for thirty three years, and I’ve seen this happen before. And quite frankly, it’s gonna happen again. Again, uncertainty.
No one likes it, but it’s just inevitable. So take advantage of the opportunity. Don’t freak out. Continue to stay calm.
Things are gonna work itself out, and just use what the knowledge you’re gaining from everything that you’ve traded through, whether it’s now, in the past, and, of course, going into the future, and use that to your advantage.
Thank you.
