Joe Anderson, CFP®, President of Pure Financial Advisors, and Pure’s Executive Vice President and Director of Research, Brian Perry, CFP®, CFA, discuss COVID-19 and the economy, the state of the financial markets, and a look ahead at what November 2020 elections might bring. Following the presentation Joe and Brian answer attendee questions.
00:00 – Intro
04:00 – COVID-19 and the Economy
04:13 – Retail Sales Implode
04:42 – OpenTable Year Over Year Change By State
05:34 – US Employment to Population Ratio
06:35 – Change in Confirmed Cases and Fatalities in the US
07:41 – Money Supply Has Increased, Money Velocity Has Decreased
09:06 – The State of the Markets
09:11 – US 2-Year Treasury
10:00 – Treasury Yield Curve Has Steepened Since January
10:50 – S&P 500 1-Year Performance
12:29 – S&P 500 Leaders
13:42 – Top Holdings of US Core Equity Mutual Funds
14:46 – Retail Investor Behavior
15:40 – Investors Turn Optimistic
16:30 – Is Success Inevitable?
17:40 – Bad News Equals Good Results: When all indications predict the bottom will drop out, why wouldn’t we liquidate some of our portfolio and move to cash?
19:15 – Looking Ahead to November
19:24 – Percent of Republicans and Democrats Who Say They Have an Unfavorable Opinion of China (Trade Wars)
21:24 – Unemployment Rates in 10 States with the Tightest Election Races in 2016
22:35 – Unemployment Rate by Education Level
23:35 – Change in Economic Expectations by Political Affiliation
24:45 – Stocks Rise Under Most Presidents
26:27 – Given how President Trump’s monetary policies have seemed to boost the stock market, what impact will Joe Biden have?
27:25 – It seems that value stocks continue to struggle. Do you foresee any improvement in the prospects for value investors?
29:15 – Are we in basically a whipsaw i.e. we get small gains then give back the previous several days of gains and maybe a little more than the gains we got previously? Given the number of businesses that will not come back and continued unemployment will our portfolios continue to drift a net down?
31:40 – I read an article in the NY Times that gamblers, without their usual places available for gambling, have now turned to investing in the stock market and are having a marked effect on the volatility of the market. How is your firm dealing with the effects of gamblers when gauging the direction of the market and making decisions that affect your legitimate investors/clients?
33:32 – Any thoughts on how civil unrest is and/or will affect the economy and the stock market
34:33 – People are talking about Joe Biden’s presidency will hurt the market, what’s your opinion?
35:45 – What does the Pure “merger” mean for your existing clients? (Emigrant Partners has purchased a minority stake in Pure Financial Advisors.)
40:22 – For retirees, given the fact that consumers drive the market and that the stock market is not the economy, what would a good current cash allocation be to have dry powder ready if/when the market adjusts again?
43:42 – Suggestion made keep about 1-year liquid assets for downtimes such as these. What type of liquid asset combination would you suggest rather than just cash in a bank? (Ask your advisor about Max My Interest.)
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