Brandy Auterson:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.
David Nelson:
Thank you very much.
Brandy Auterson:
So, financial markets have all been under a lot of pressure this year, but there have definitely been areas that have fared better than others. Could you talk about some of the differences you’re seeing?
David Nelson:
Well, broadly speaking, most of the investments out there are down year to date, with the exception of commodities. Just looking at the Dow and looking at the S&P, you might not come to that conclusion. But when you look under the hood, as far as to see as far as investments, growth in technology stocks have really been roughed up. The chart I brought along today will give people, I think, a really nice visual, as far as it’s showing in the blue line is the S&P, and then the red is the All Cap World Index, excluding the United States. And what you see here is that both had an initial decline, that was the pandemic on the left. And then as far as both rallied pretty significantly until recently. And what we see there is that the red line, which is the All Cap World Index, has basically wiped out, over the last several months, all the gains from the two years. Very shocking, as far as to say the least. Gone, the United States, we’re still up as far as during that same window.
Brandy Auterson:
All right. So how should viewers think about this in terms of their investments?
David Nelson:
I think the big thing is, as we talk about all of the time, is understanding what you own. And if you own target date funds through your employer, the 401(k) plans, it’s tough oftentimes, as far as to understand and what regional exposure you have. Clearly the winner’s been the United States as we just saw. Probably going forward, we still are in that camp. Be careful, as far as people look at stuff that’s cheap. We just keep reminding people that cheap can get cheaper and be very careful on your investment selection.
Brandy Auterson:
All right, David, thanks for the insight.