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.
Brandy Auterson-Hurst:
So, we have talked over the years about how different areas of the market perform better at different times. Could you tell us a little bit about some of the drivers of that dynamic?
David Nelson:
Sure. There’s a lot of things that can cause that to take place, as far as certain segments of the market to accelerate. Probably the top of list would be the dollar. That’s probably the biggest item, as far as that we’d weigh in on. A chart I brought along today is illustrating just that very point. And it’s looking at the Dollar Index over a three-year period of time and that’s in blue, that’s on the bottom. And then I put in some yellow lines illustrating on the left-hand side as the dollar is going up during that window, year and a half, two year period, what we see is that the energy sector, which is basically what we’re looking at here in red, that’s illustrated there, that it actually did quite well, where the market really wasn’t doing that well during that whole period of time.
Then fast-forward to more of the right-hand side, is the dollar starts tailing off a little bit. And what we see there is that the yellow line, which is Insurance Index or industry, I should say, that actually is doing quite well as the energy is actually puttering out and going the opposite direction. So, again, it’s trying to illustrate a really important point, and that being that all areas of the market don’t perform at the same time.
Brandy Auterson-Hurst:
Okay. So, what does this mean for viewers’ investment portfolios?
David Nelson:
Well, the macro forces, interest rates, currencies, they really do matter and it’s something that people need to pay attention to. I know we’re spoiled in the US that we don’t have to worry as much about the dollar fluctuations as many other countries, but it’s important as far as your money is concerned.
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.
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.