It’s on just about everyone’s mind right now. Reaching new heights by the day in a way that defies logic. Recent negative days almost make it seem normal but no matter how you look at it, the stock market is wildly overpriced. Big business is doing well but small business is having a hard time of things in a lot of places, mostly because nobody wants to work. It certainly is a backwards economy and I don’t know what to make of it.
Enjoy the party while it lasts because it will end at some point and it could be painful. In the financial services industry it’s not a good thing to just speculate with fear-based claims. We need objective proof to make a good argument. Last year I wrote about the Fed’s bond buying program and how they were pumping billions into the economy each month. It kept the economy from being destroyed by Covid and the results showed up in growing investment accounts. You can either complain about out-of-control government spending or be satisfied with more money than you’ve ever had but you can’t do both.
The Federal Reserve is planning to taper the bond buying program, although the debate about when to do so is not settled. This is going to make a difference when support is pulled for the economy. When news of this came out several weeks ago there was an immediate sell-off in the stock market. It came ripping right back only to start settling again this past week. I saw the trend but didn’t know how to explain it.
Therein lies the benefit of me working this year to create a team of advisors across the country. One of those is a highly skilled investment manager named John Balmer. Last week we recorded a podcast with John as our guest and he had some really good insights regarding market trends. The episode will be released next Thursday, September 23rd. I encourage you all to tune in and see what he has to say. Below is a video where I give a preview of a couple of these things. I’ll send a link out next week with the newsletter for those of you who would like to hear from a true investment expert.
Check out the video below to get started. I’m on the way to my annual elk hunt this morning so please send all questions via text or email so I can respond after my daily nap in the mountains. Phone calls are off limits unless it’s an emergency. Enjoy the video, wish me luck and I’ll be back at my desk on the 27th.
Have a great weekend!