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. I appreciate it very much.
Brandy Auterson-Hurst:
So we often hear about the business cycle being in different stages. Explain to us what the business cycle is and how we know which stage we’re in.
David Nelson:
Well absolutely. The business cycle is kind of like the economy’s heartbeat. It typically moves through four different stages, expansion, the peak, contraction and then the trough. And to understand where we are as far as in that cycle, what we like to do is we basically put three different tools together as far as to come up with an answer to this. And the chart I brought along today is a great visual. It’s showing a couple different numbers here. And the white line is looking at the yield curve, the red line is looking at the unemployment rate, and then the blue line represent consumers expectations. And when we combine these three indicators, they do a pretty good job of telling us as far as the economy and where it’s heading next. And today, what we’re seeing here is signs suggesting that the current cycle is getting long in the tooth and that may be about to turn, and that’s certainly something that individuals should be aware of.
Brandy Auterson-Hurst:
Yeah. So what does this mean for viewers investments?
David Nelson:
Well, we could be approaching, there’s no certainty to this, but we could be approaching a turning point and that turning point oftentimes, they can come rather quickly, a lot quicker than what people perceive. But it’s certainly worth understanding as far as what you have today, as far as in your portfolio, how it could be impacted as far as when this eventually does turn, and what it’s going to mean as far as to your pocketbook. So pay attention today. This is a really important time. We could be at a very important turning point coming very soon.
Brandy Auterson-Hurst:
Some great advice there, 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.
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.