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:
Thank you very much. Appreciate it, Brandy.
Brandy Auterson-Hurst:
So David, the stock market keeps reaching new highs, but a lot of people would say the economy is struggling right now. What are your thoughts?
David Nelson:
Yeah, it’s a good question and probably a source of confusion for a lot of people out there. The chart I have with me today is a nice visual as far as helping illustrate, I think will bring some clarity hopefully to the table. The red line is the S&P of 500, and the blue line measures the consumer sentiment, which is basically just how Americans feel about the economy. And as you can see, for years the two tended to move together, but over the last couple of years, they’ve gone in very different directions and the stock market has continued to hit new highs, but consumer sentiment has fallen off a cliff.
And what we’re measuring here are two very different things. So the stock market looks ahead at corporate profitability, and that’s probably, again, the part that most people are thinking in terms of, but the consumer sentiment is looking at how people feel and what interest rates have gone up, prices as far as at the grocery store have gone up. So it’s a lot of variables that go into this calculation as far as trying to look at how people are feeling. And as again, you can see from this thing, the two are very different in recent times.
Brandy Auterson-Hurst:
Yeah. So what does this mean for people watching at home?
David Nelson:
Well, our job is to determine which one of these is more likely to move next and to help individuals adjust their portfolios accordingly to try to capitalize on that.
Brandy Auterson-Hurst:
All right, David, as always, thanks for joining us.
David Nelson:
Thank you.
Brandy Auterson-Hurst:
If you missed any of our discussion, we’ll make it available for you on OurQuadCities.com.
Past performance is no guarantee of future results. 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.