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, Brandy. Appreciate it.
Brandy Auterson-Hurst:
So with markets around an all time highs, what do you think this means going forward?
David Nelson:
Well, it’s easy to find as far as periods of time like now where you have people that have their bullish calls and the bearish calls. Basically what’s interesting about that is they’re looking at a lot of the same data and coming to totally different conclusions. And so to kind of sort through this to get the lay of the land as we like to say here, I pulled together a chart that I think will help people look at the past 10 years as far as what’s taking place.
And during this period, we’ve seen a lot of things that have happened that have resulted in declines in stock prices, but each time, eventually we recovered. But what we can see on the chart is that the most recent decline has been driven by inflation and interest rates in 2022, and it’s been a long, proactive period of time without new highs. Now, having said that, history says when coming off of long periods without making an all time high, generally when the breakthrough takes place and we get through that threshold, generally it’s a sustainable type advance. And so that’s certainly what we’re hoping for as far as today.
Brandy Auterson-Hurst:
So how can viewers use this information when it comes to their investment plans?
David Nelson:
Don’t get caught up in any one analyst as far as their prediction of tomorrow. We like to look at the information that’s at hand today, make decisions, and not try to predict as far as the future, any more than anybody else can predict it. And we have a saying as far as around here, and I know I’ve shared this previously and that’s being right or making money. And we want people to make money. We don’t want them necessarily always be right because you’re not going to be. But making money is really key.
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.
The S&P 500 Index is a market-capitalization-weighted index of 500 leading publicly traded companies in the U.S.