Announcer:
4 Your money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.
David Nelson:
Thanks, Brandy.
Brandy Auterson-Hurst:
How are you thinking about stock valuations right now, especially in light of broader market trends?
David Nelson:
Yeah, we’re seeing some pretty big numbers as far as stocks are actually doing quite well. What I brought along today is a kind of unique way of comparing and contrasting as far as a couple areas that people are kind of intrigued by. One being the S&P 500 stock index to the Bloomberg Gold Index. The data is going back to 1970. The chart that I brought along today is basically a way to measure and compare the two of them.
What we see here is that when the line is moving up, the blue line is moving upward, that’s basically telling us that it’s more of a risk-on type environment. Other words, stocks historically have done better in that type of environment. When things are moving downward, what we see is pretty much just the exact opposite. Now, it’s the Bloomberg Gold Index that’s actually outperforming during those periods of time.
Again, it’s just one of the tools that we use as far as there’s many different tools that we try to look to, to try to gauge as far as, is now a good time to be investing. If so, into what? If not, what should I be doing as far as what are some other alternatives? This comparison between the Bloomberg Gold Index and the S&P 500 is a really, really nice comparison.
Brandy Auterson-Hurst:
Okay. How should investors think about this going forward?
David Nelson:
I think the biggest conclusion that we come to is that both asset classes, it looks like could have decent returns going forward in the environment that we are in today.
Brandy Auterson-Hurst:
All right, David, thanks for your insight today.
David Nelson:
Thank you.
Brandy Auterson-Hurst:
If you missed any of our discussion, we’ll make it available for you on OurQuadCities.com.
Investing involves risk. Depending on the types of investments, there may be varying degrees of risk. Investors should be prepared to bear loss, including total loss of principal.
Indices mentioned are unmanaged and cannot be invested into directly.
This video includes a paid appearance.