Summer Heat and Economic Stress

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There’s a heat wave spreading across the world right now, along with a lot of economic stress. On today’s episode we’ll explore some expert opinions on our current bear market. Does Don agree or disagree with them?

Summertime heat and economic stress are running hand in hand currently. There’s a joke within the financial industry that says whenever an advisor goes on vacation, the market goes down. Well, now that we’re back from vacation we’re going to examine some of this economic stress.

We’re going to examine some economic advice for withstanding market volatility from some of the experts around the industry. Should we agree with them, scrutinize their advice, or take it all with a grain of salt?

Equity strategist, Phil Orlando, expects the market to decline further by another 10% over the summer. He also favors value stocks over growth stocks. Holding cash hasn’t been this attractive in over 20 years.

We’ve heard a lot of positive news about value stocks over growth stocks recently. The S&P has lost about twice as much as the value index. Value stocks historically have better rates of return than growth stocks. A well-diversified portfolio should have both large companies and small companies in value stocks.

Financial journalist, Bill Stone, says there’s a silver lining to the recent stock market and bond market damage. There’s a decent amount of bad news baked into these asset prices already. Timing the bear market is impossible but a rebound is usually explosive.

It is impossible to time the market. Rebounds happen in quick bursts. People are still spending money on services and employment still seems to be good. So, our regular markers of a recession aren’t as pronounced. With the shift of COVID policies, there has been a shift in the supply chain helping the economy grow.

Join us today as we break down these opinions and more. Does Don agree or disagree with the talking heads?

If you have any questions for Don reach out at (732) 784-2867 or don@doncash.com.

Listen to the full episode to learn more or skip around to certain topics.

[0:29 ]Did you have a good summer trip?

[1:25] – Don’s daughter is getting married!

[2:42] – What we’re going to analyze today

[4:53] – Demand for services are still good

[6:50] – Value stocks over growth stocks

[11:18] – We can’t time the market

[14:53] – Be aware of emotional decisions

[17:20] – Mailbag – Do I really need an advisor?

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ABOUT YOUR HOST...

Donald W. Cash – CPA, CFP®, is an independent advisor. After graduating from Rutgers University, he began his career in 1985 as an accountant. In 1990, he entered the field of Estate Planning, concentrating on long-term care planning. Don has been advising clients in the baby boomer and retirement market for 20 years. He has helped over 1,000 families with their planning needs.

Don advocates for a holistic approach to Estate and Financial Planning and has relationships with other professionals including Attorneys, CPA’s, Mortgage Specialists, Insurance Specialists and Asset Managers.

He is married to Cathy and they have 4 children, Carly, DJ, Nick and Tori. They live in Freehold, NJ.

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WAYS TO CONTACT

(732) 784-2867

don@donaldcash.com