Here are my current thoughts after 2 volatile days
Hi there, Mike Brady with Generosity Wealth Management, I am recording this on a Tuesday afternoon, kind of late Tuesday afternoon. I promised that I would communicate as much as possible to share with you some of my thoughts and that’s the purpose for this video.
Yesterday’s video was about 13 ½ minutes, and I definitely am going to make today’s much shorter and pithier, I think, as much as I can.
Monday was a very bad day and we can’t isolate that day and say every day afterwards is going to be horrible. Just like today, Tuesday, the market, it was the best day, single percentage gain since May of 2010. We can’t sit here and say, “OK, everything going forward is going to be perfect; hunkey-dorey, roses all over the place.”
I think what we’re seeing, we’re seeing, kind of a tug-of-war between people covering their short positions; people who are panicking and trying to get out, with those that have money on the sidelines wanting to poor back in, saying, “Wow! These stocks are a bargain now! I think that the market is undervalued!” And so I think we are having that tug-of-war. Which one’s going to win out? I’m not sure exactly. But we’re going to continue to see some volatility I believe, in the next week to two weeks, as we go forward.
I believe that what some people are, what is causing some of this market uncertainty is actually uncertainty in the markets, in the, you know, the United States, about the economy. That the gains we have made, are you know, back sliding on it.
I know that there’s been an awful lot of focus on the indebtedness of our country and the S & P down grading, etc. Frankly, none of that was a surprise. But what was I think, brought to people’s attention were the GDP numbers which were really horrible, some of the unemployment issues, the continuing unemployment issues. And I think that’s really causing a level of pessimism that is not helpful in the market going forward.
I have looked every single client’s portfolio, if you’re one of my clients, and want to let you know you are where I think you ought to be.
Let me just look at my notes here, there are a couple of things I wanted to address real quickly.
I believe that international is something that should have a very minor position in your portfolio. Just to kind of reiterate how some of the other countries have done, I mean we call them the BRIC countries; Brazil, Russia, India, China, they’re down, their indexes are down between 20 and 33 percent. So they’ve done very poorly.
I said yesterday that I thought municipals would be downgraded at some point. Today there were a significant number of municipals that were downgraded. This is just kind of the start, I believe of, kind of the downward slope of some of the government securities.
Gold is continuing to do quite well. I do believe that that makes sense to have in some of your portfolio.
Let’s see, I think that’s it for right now. I’m going to continue to watch things on a daily basis. I will probably do a video tomorrow or the next day- just to kind of let you know what I’m reading and how I’m interpreting some of the data as it’s played out.
I want you to call me if there are any concerns you might have, 303.747.6455, I’m Mike Brady with Generosity Wealth Management.
And you know, I’m here, I’m here to assist you, for us to get to your goals, for you to achieve your goals with some assistance.
I am a comprehensive, integrative wealth management firm. Mike Brady is my name, 303.747.6455. And we will talk to you again soon, bye, bye now.