Announcer:
4 your money is brought to you by Nelson Corp Wealth Management.
Brandy Auterson:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of Nelson Corp Wealth Management. Welcome back, David.
David Nelson:
Thank you, Brandy.
Brandy Auterson:
So lately we’ve seen a lot of news regarding concerns of the Delta variant. Are these showing up in any way in the economy or financial markets?
David Nelson:
Yes, certainly they are. It’s tough to quantify as far as the magnitude, as far as the impact. There’s so many variables that come into play as far as whether the economy is working or whether the market is working. A few things that again are to us pretty much front and center as far as trying to figure this out is that we have a mixed message that’s coming as far as from the markets. The bond market is basically interest rates have been coming down again, which typically is saying we’re concerned about deflation while the stock market seems to be on a roll and hitting all-time highs on a fairly regular basis.
David Nelson:
I brought along a chart, which will be a nice visual. And this is looking at sentiment, which is one of the pieces. When we look at what we think is going to take place, as far as going forward, this Michigan survey that’s done, again is done with the idea of trying to figure out what people are thinking as far as the economy, as far as the markets and not just today, but looking forward as far as a year. And as you can see, as far as in the chart, this is below the 2020 lows that we saw then.
Brandy Auterson:
Okay. So is there any relationship between these measures of consumer attitudes and financial assets?
David Nelson:
Yes. Very, very important. Again, multiple pieces as far as no one out there should be making their decisions based on one survey. But when you put that together and you look at the wall of worry that exists as far as out there, what you find is that there’s things that people can piece together. We call them price based and non-price based as far as options, and those variables as far as, are key to this.
Brandy Auterson:
All right. So I know you don’t like to put all of your eggs in one basket. Are there other data points that farewell with the measures we’ve been talking about to give a more broad sense of where things are?
David Nelson:
Yeah. I think the market when you look at price-based and that’s typically looking at what’s actually taken place again as crazy as it sounds is the market continuing to go up. And the trend is your friend. You hear that term a fair amount as far as in the line of work that we’re in. Then you have the non-price base, which is looking at how people are reacting to it, the consumer sentiment type issues. And how are they viewing as far as not only today, but tomorrow? And when you have both of those in sync, this is really a good time as far as to be investing when both are in sync. Not saying today’s the day. What I’m saying is when those two variables come together, it can really be a wonderful return as far as in the stock market.
Brandy Auterson:
If you missed any of our discussion, we’ll make it available for you on ourquadcities.com.