[content_block id=1079]
Redrick Terry: It is now time for 4 Your Money. We are joined as always by David Nelson, CEO of NelsonCorp Wealth Management. David, welcome back.
David Nelson: Thank you very much.
Redrick Terry: Of course, and, uh, in discussing your 2019 outlook, you’ve shared your thoughts on what the start m- stock market might do, but we all know that stocks aren’t the same. Uh, any thoughts on where they may be winners and losers?
David Nelson: Yeah, it’s important as far as to, uh, to d- not just take this guessing type of approach to things. Um, you know, you hear people talk about, “You can throw darts and the percentages are just as good.” Uh, you know, I- I- it, that’s a ridiculous comment. Um, we- we- we feel that th- there’s opportunity out there. We’re still in the defense about, which translates into healthcare, utilities, [consuper] staples. These are boring, boring places to me.
Redrick Terry: (laughs)
David Nelson: Technology is much more exciting, but technology today is still probably a little over priced, and in this stage of the economy, um, you probably don’t want to be venturing into those waters. So the defensive names, if you’re going to be invested in stocks, are probably the place that you want to be.
Redrick Terry: And what about your thoughts on investments other than stocks?
David Nelson: So bonds are, uh, are an area that we’re concerned with. Um, uh, bonds, if you look at interest rates, we- we like to use th- the … to try to simplify it for people … bonds, when interest rates go up it’s a teeter-totter. When it goes up the value of your bond goes down. We think we’re in the mode where interest rates are going to trend up. We could see a half po-, uh, a half of a percent increase as far as in interest rates next year, maybe even more, and if that takes place that’s gonna put a lot of pressure as far as on bonds. When you look at other areas generically, obviously, uh, this is a very generic discussion, but, uh, uh, a commodities are an area that have been really, really bad or pretty hard.
And it may be something, big picture wise, people might want to take a look at. Again, no recommendation, just ideas as far as to think differently, real estate’s been roughed up pretty, pretty hard as well. So there’s opportunities out there for people to, to hand pick and go out and try to find it. We just would caution people that again, don’t charge in one day … don’t ever exit one day, but certainly don’t charge in one day because there’s still a fair amount of risk that exists out there. There’s a lot of, a lot of concern on interest rates and if they go up the valuations, a lot of these, uh, stocks are going to be dropping, uh, and maybe pretty significantly as far as depending on how, high how, how high rates go.
Redrick Terry: Yeah, that’s one of those things where we always have to keep an eye [crosstalk]-
David Nelson: Yes, absolutely.
Redrick Terry: … as it goes. All right, David. Thanks so much for joining us.
David Nelson: Thanks Redrick, appreciate it.
Redrick Terry: Absolutely, and if you missed any of our conversation, we’ll have it available on our website, ourquadcities.com
[content_block id=1539 slug=button-for-all-tv-and-radio]