The WWM Financial advisors, Certified Financial PlannersTM and portfolio managers gather to discuss their take on current market conditions as of March 9, 2022. How can market volatility affect your investment portfolio? Once you consider the war, supply chain issues and rising inflation there can be a large shift in focus. They further discuss economic indicators and technical indicators.
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Click on the video above to watch August's Market Update.
Stock Market Update 8/4/2021
In this informative yet brief market update, Steve Wolff discusses amazing stock earnings, the Delta Variant and mortgage rates.
Transcript below:
This is Steve Wolff, and we’re going to talk a little bit about what happened in July of 2021, and we’ll do our Monthly Market Update. So this was the month that the COVID variant seems to have made its reappearance. There’s a lot of talk about, should you wear a mask? Should you not wear a mask? People getting vaccinated, et cetera, and that’s had an effect on the market. Earlier in the month, the marketplace actually had one day that was really bad, but then it seemed to come back. I’m not convinced yet that the COVID virus coming back at all is going to really affect the stock market, but it has affected it a little bit so far.
What happened this month? Well, bond yields actually went down a little again, which means mortgage rates are once again on the table. If you haven’t refinanced your mortgage, you might think about doing that right now. I’m seeing rates that you can get under 3%, and that’s pretty cheap. People today think when rates go to 4% that that’s expensive, or 3.5%. I can only tell you that my first house way back when, I had a 10 and three quarters percent mortgage rate. I’m sure some of the people who are watching here, who are older, will remember that; so when we’re talking about 3%, in my opinion, that’s really low.
What else happened? Stock earnings. Stock earnings this month, they’ve really been great. I mean, they actually outperformed high expectations. Now, some of the stocks have pulled back a little bit because I think even with high expectations, you had stocks that ran a little bit maybe ahead of themselves. But that’s okay. They reset a little bit. We talked about this before. I still think that we’re still in the midst of a bull market. As you can see my little friend, Mr. Bull over here, who’s still hanging on. I think that we’re going to be hanging on here for a little bit longer.
Interestingly though, when you’re looking at the stock market, you really should differentiate between the “market” and really what it represents. For instance, what I’m talking about here is that in the S&P 500, the top five stocks make up about 22% of the portfolio, and the top 10 stocks in a 500 stock portfolio represent somewhere around 30% of the portfolio. So really, when you’re talking about the market, you’re really talking about maybe 10, 15, 20 stocks having a big mark on what’s going to happen as far as the markets, and what they’re going to do. So, I would actually look at individual stocks.
When I look at big tech and big online retailers, their earnings were outstanding. They really were. A matter of fact, it’s hard to believe. Usually, you say, in the ocean, the battleship, it takes a long time to turn it around. A rowboat, you can turn real fast. Yet, these huge behemoths of companies have just been… terrific. Until that changes, I still think that the bull market is intact. I don’t see any reason to change where we’ve been for the last couple of months. That’s where we’re at. Mr. Bull, you’re still hanging on and we love it. We’ll talk to you next month. Thanks.
Steve Wolff is a Managing Partner at WWM Financial in Carlsbad California.
Steve can be reached at 760-692-5190.
Disclaimer
The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security. It is only intended to provide education about the financial industry. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. Any past performance discussed during this program is no guarantee of future results. Any indices referenced for comparison are unmanaged and cannot be invested into directly. As always please remember investing involves risk and possible loss of principal capital; please seek advice from a licensed professional.
WWM Financial is an SEC Registered Investment Advisor. Advisory services are only offered to clients or prospective clients where WWM Financial and its representatives are properly licensed or exempt from licensure. No advice may be rendered by WWM Financial unless a client service agreement is in place.
If you would like to watch the video of Steve reading “Hello, Good Buy” click on the image above.
Hello, Good Buy
By Steve Wolff
The market goes down and you start to cry,
Hey don’t cha know it creates a good buy?
You liked it much higher and now it has fallen,
So strap on your boots and stop all your bawlin’.
The best time to buy is when stocks get too cheap,
This isn’t brain science, it’s not a great leap.
Which do you like, eighteen or eight?
For me I like lower, it’s the discounted rate.
Yet time after time the response is the same,
“My stocks are all falling, get me out of this game”,
It’s time to think different, your thoughts must be clear,
It’s brains over hearts, to get over the fear.
Ok, I know, there are times you should sell,
But those times should always be thought out well.
Using logic not fear, is the way it should be,
Grey matter, after all, is truly the key
With respect to the Beatles and their song long ago,
They said, “you say high,” and then “I say low,”
You follow with “why?” and I say, “you should know,”
Buy lower is how you make the most dough.
You’ve finally grasped it, you’re seeing the light,
The lesson, buy low, is getting it right,
I look in your eyes with my face all aglow,
As you say good buy, and I say hello.
Disclaimer: Always be sure to contact your financial advisor for advice on your personal portfolio.
WWM Financial is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where WWM Financial and its representatives are properly licensed or exempt from licensure. Investing involves risk and possible loss of principal capital. No advice may be rendered by WWM Financial unless a client service agreement is in place.
Steve Wolff is a Financial Advisor and Managing Partner at WWM Financial in Carlsbad California.
