No Good News Ahead - Market Update

And the band just keeps playing, yesterday we saw Chairman Powell raise interest rates 75 basis points. I don’t think anyone should be surprised at this point, and he’s made it clear that he plans to continue this strategy going forward, Dave Duley here from the Georgia Advisory Group, this is our market update

I think it’s important for people to understand that you can either sit back and take a passive approach and see what happens in the market, and that’s over the next six to 12 months, or you can be proactive, and by that I mean exactly what we’re doing at our firm. 

In April of this year, we were fortunate enough to have a 30 to 50 percent position in our portfolios with our clients for the first time in 40 years the most important thing is to look at your current portfolio and ask yourself if you should be better positioned for a recovery when it comes, or if you just want to wait and continue to get beat up when I open my statements every 30 days and get depressed looking at the numbers of how deep I’m down, or if you say: No, now’s a good time to take advantage of companies that have been beat up, especially in the technology sector or some companies that have just dropped 30, 40, 50 percent, but these are companies that have a lot of cash on their books, for example, uh, they’ve also uh, set their prices right so they can adjust for inflation uh, even though most of the big companies are going to tighten their belts, You’re going to see layoffs like you haven’t seen in the last four or five years, so these companies are changing their estimates for the future, uh, what their uh, profits are going to be, these are things that we all expected and knew they were going to be, so don’t sit back and take a passive approach when your advisor tells you to just sit back. 

You know it’s always going to go up, but it’s not always going to go up quickly, and I can give you hundreds of examples from the last 30 to 40 years where we’ve seen downturns for quite some time, but you’re going to see runs that are going to take place and you want to be positioned to take advantage of them so don’t hesitate to fill out your data here below or next to me on the video. One of our advisors will call you and we’ll take a quick look at where you’re at, not only the portfolio that you’ve, for example your main investment account, but also your 401k account that you shouldn’t just ignore you can send us a copy of that by filling out the information that we’ll contact you with and we’ll do a review of your portfolio. One of the strategies that we use with our money managers here at Georgia Visor Group is to sell puts into the market, and I say that with the caveat that you don’t run out and start doing something like that but puts give you the opportunity to earn an income while the market is either stagnant or falling and then you’re able to buy because you’ve the opportunity to buy stocks at a lower price than they’re trading today, ie.i.e. the market is falling, it’s at its bottom…I don’t think it’s going to be a hard ride until the summer of next year, but you need to be positioned to take advantage of it. 

If you want to know how we do it, you can fill out the information again, we’ll get back to you and do a review… and if you’re listening, take that information back to your consultant and say, “Hey, what’re we going to do, are we just going to sit here and wait? and wait, or are we going to be proactive while we’re in this environment, and that’s where the rich get richer and the poor get poorer, because the rich have advisors around, they say where there’s a lot of advisors, there’s a lot of wisdom, you want to surround yourself with advisors, so let’s be a part of that to help you again, just click below or give us a call, we’ll do what we can to take a look at the we’ll do what we can to take a look at your particular situation and help you. Our customers are well positioned now to take advantage of the upswing that’s going to take place, there’s no doubt about that, but it’s going to take some time, so don’t get frustrated, don’t get emotional, we’ve been through this before. This is your market update for the week of 22 September