Joe Anderson, CFP®, President of Pure Financial Advisors, and Pure’s Executive Vice President and Director of Research, Brian Perry, CFP®, CFA, answer attendee questions and the most common questions we’ve received about investing strategies in a time of market volatility, as well as the economy, recession, the stock market, and the bond market.
The Most Common Questions We’ve Been Getting
02:51 – I’m worried about the economy and how bad a recession might be? Should I get out of the stock market now?
04:36 – If I have a lump sum of money, is this a good time to invest it?
06:12 – With bond yields so low, why does it still make sense to own bonds?
09:35 – I own international stocks in the portfolio you manage for me. Aren’t those risky, especially right now? And when are they going to do as well as U.S. stocks?
11:10 – It seems like my small value stocks have underperformed large growth companies. When are you going to switch me into large growth?
13:19 – Why don’t I just own Apple and Amazon?
15:29 – I saw in the news that oil prices plummeted and were even negative. What’s going on there?
16:59 – I think biotech and pharmaceutical companies are going to do well especially if they find a Coronavirus vaccine. Why don’t I sell my mutual funds and buy individual stocks in those sectors?
17:12 – What are your thoughts on how the bond market will perform over the next 12 months with the trillions of dollars of new debt?
Attendee Questions
20:45 – How will the recent changes in the oil industry affect us long-term and short-term? What are the best and worst-case scenarios for negative oil prices?
22:03 – How is Pure repositioning in our portfolios the suite of companies that will come out of this crisis with the best growth potential, and likewise, minimizing those companies that are poised to suffer in the brave new world?
24:28 – What is the deal with the guy on the radio that says you can invest in fixed indexed annuities with him and take advantage of the increase in the stock market, but won’t lose a dime with the next market downturn?? Is he goofy?!
29:31 – Does Pure own individual stocks? I thought the portfolio consists of various mutual funds in different categories? You say “the portfolio we all have.” I thought we all had portfolios based on percentages of risk, stocks vs. bonds vs. cash; 60/40 or 40/60 as examples?
31:27 – Any thoughts about gold?
34:05 – Mortgage rates, government backstop mortgage-backed securities?
37:42 – Have you or when will you be re-positioning for the negative issue in the bond markets?
38:53 – How risky are opportunity zones investments?
39:56 – How do you think this downturn will impact the San Diego housing market? If there are favorable real estate buying/investment opportunities due to the crisis, what are the pros and cons of doing so?
42:24 – How is the coming presidential election likely to affect the market’s performance?
43:10 – What concerns you the most about the next 12-18 months, and what gives you optimism in same period?
Watch the previous market update webinar (April 14, 2020): Is the CARES Act Helping the Economy Yet?
Subscribe to our YouTube channel.
Read Brian Perry’s new e-book, Retirement Revamp: Financial Planning in Times of Crisis
IMPORTANT DISCLOSURES:
• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, Inc. A Registered Investment Advisor.
• Pure Financial Advisors Inc. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.
• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.
• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
