The Jon Sanchez Show
10/23-What’s your investing playbook for uncertain times?
Investors are finding themselves in a predicament. Bond prices are falling and yields rising, mortgage rates are nearly one half of a percent higher since the fed cut rates, they are uncertain of the economic impact of the election and of course many are concerned with the Middle East tensions. So what’s an investor to do? We’ll share with our playbook.
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- 23 Oct 2024
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Some of it shocks you when you say you do that. You actually can't even say it. You're like talking randomly, evening, and- [laughter] I know. It's a challenge for me, I thought. No, it's good. It's good. This market acted like it ate a big quarter-pounder, huh? Geez, that's a good scenario. Yeah, I'm kidding it did. Man, what a challenging day it was. I want to give you kudos right off the bat. You've been warning about gold prices not able to sustain and low of people. It's interesting. Everyone will learn. They created today along with the stock market side of things. So goes gold. Yeah, yeah, exactly. But rest assured that we are going to get you through this. We promised that. Here, this scenario for what we're going to be discussing after the stock market recap. You know, you as an investor are finding yourselves in a predicament, right? We hear it from so many people. Bond prices are falling, which of course bond yields rise when that happens. Mortgage rates are nearly one half of a percent higher since the Fed cut a few weeks ago, right? Do I mention that last night? And of course, there's uncertainty in the economy in regards to the election. Who's going to get elected? What's going to be their economic plan? What's going to be the tone of the country? You know, so on and so forth. And then of course, let's throw in the Middle East tensions. So right now, we kind of have a bullseye. I've used this analogy in the past when we've had some challenging times. I'm going to use this analogy. We've got a bullseye on our chest and there's arrows being fired at us from all different directions. We'll let Jason and I kind of be your shield tonight or today. See, there we go. See, you were in the form of this. Sorry, Paul. Play me. There you go. So what are you to do right now? So we're going to unveil to you what our playbook is that we're doing for our clients at this point. And then go through some things that are most likely going through your mind as far as, you know, nervousness that's going on, right? This market has dropped fairly nicely these last few days. I mean, we're still not that far off a record territory, but it's a choppy, choppy market. And so again, kind of like a good football coach, you know, you've got a playbook, you hand it off to the players at the beginning of the season. Well, we're almost, you know, we're in the fourth quarter of the season, i.e. the fourth quarter. And therefore, from an earnings standpoint and calendar standpoint. So therefore, how are we going to finish the year? Are we going to finish the year strong or are we going to kind of sit back and not do much of anything? Well, we want to give you a playbook and help you, of course, get out of this year with some of these great gains that we've been so fortunate to achieve. But first, you have to understand what the heck happened today because a lot of the things that we're talking about, as far as the playbook is concerned, absolutely unfolded today. Mr. God, take it away. Yeah, I mean, it feels like we're getting to the, I would say, the upper bound of this rates move, right? As Dwight had mentioned prior and something that we try to stress so much on the show, the market's a discounting mechanism. It's already ahead of where things are now, you know, four to six months ahead of time. And so as people talked about how come rates rallied as soon as the Fed started cutting rates, because they started falling back in April, May, right? And the Fed hadn't done anything yet, right? We talk about six to 12 months before those cuts, A, get into the economy, but the market's going to discount it well before it happens. And, you know, very much that sell the news or buy the news event. Here's what's going on with interest rates, right? You had a market when the Fed was cutting that was worried they weren't cutting enough. Remember, I'm going to do 70, how big should this thing be? And then the Fed came out, right, right? I mean, you know, you were talking about interim cuts at the time, right? Like that was where the mentality was given how fractured things started to look. And then all of a sudden, in a short period of time, we've gone to, oh, my gosh, jobs are holding in, CPI hasn't come in as much as we thought. The Fed now maybe will only cut or skip November. Like this, it's such a, you know, not to mention the election thrown into all of the mix. And you see a case where some odd things are happening, right? We talked about gold, right? Or gold historically is something that you're holding when it's cheap to hold it. When is it cheap to hold gold when interest rates are low, right? You can't get much over here, so you might as well put it here. Well, interest rates have been going up for the last several weeks to the tune of Darnier, three quarters of a percent off the lows or more. And gold's going up with it. And in fact, the dollar is going up at the same time too. And typically those three horsemen don't ride together. Somebody needs to break. People are asking me, how come this is happening? Well, here's a narrative. I don't agree with it, but here's a narrative. You've got Yen that has gone the other way. Last I checked, Yen was like 152 or something. Remember, we were freaking out when it was down at 139. And remember, higher Yen equals weaker Yen. That's versus the dollar. Yen's reversed, it's going the other way. Some chatter that there could be some Japanese selling of US Treasuries. That is something that they would need to do to defend their currency, so on and so forth. That would create selling of... John has done so well in the past to explain down price up yield as you're selling something that puts upward pressure on interest rates. You also have the things we talked about. How come this Fed doesn't need to cut as much as we thought before? Guess what? The market's taken some of that implication out as well instead of them cutting, you know, maybe 250 basis points over the next year and a half. Maybe it's only going to be 175. Well, that's 75 basis points less and the market's pulling that right back out of expectations. And then finally, we talked about the gold trade, the fear factor around China and other economies out buying gold and such and such. I think it's more a momentum trade as I've talked to you. I really think there's a lot of people sitting on the left-hand side of that boat and you don't all want to be on the left-hand side of the boat together. One of our wonderful clients who was in here actually works as a dealer at gold, silver, in the area. And even he was like, you know, the feel like we're passing out tin foil hats right now. And that was literally the analogy that he used. So, you know, you've got all these things sort of happening all the same time. Clearly, the election is something that's got this market geek. But today was, to me, feels as we've gotten to 4.2, 4.25 now closer to that, 4.3 level on the 10-year, the market's finally starting to notice it. And I think that's part of why the Dow was weak, NASDAQ, so on and so forth. The interest rate areas that were sensitive were bocking a bit. The last part I want to mention is what wasn't. Utilities were starting to pick their head up a little bit. Real estate today. The real estate ETF was picking its head up today. Not something you normally would expect as rates are going up, which makes me think things are going to start to potentially roll back over on the rates side, which could be beneficial for the markets, small caps, those types of things. Today is the day when the buybacks start to. The biggest of the buybacks, financials, et cetera. They get going here pretty soon. That's a big buyer over the next month or so. So, I still think we're in buy the dip mode. Excellent analogy. Let's go back to something that we use this term a lot. But, you know, let's think that people don't know what we're talking about when we say this. And that is the market is a forward-looking mechanism. Yeah, the market, right? It's not reading the news on the front page, right? It's forecasting the news that's going to be on the front page six to nine months from now. And why so many retail sellers, retail being, I would say, folks who are using the front page of the newspaper to make their decisions, right? If you read something, they're like, "Oh, I'm going to go buy this thing." That's what it's already well, well, well into the stock or bond or whatever. You know, the market does that. It makes expectations. It says, "Google's going to be earning, so I'm going to buy Google now before Google beats earnings three to six months from now," right? That's what the market does. So, oftentimes, when you're buying it before earnings because it's gone up a lot, you end up holding the bag, right? How come it's down? Because it's gone up a lot beforehand. So, the market tends to get out ahead of itself. Not always right, but it definitely gets out ahead of itself. And that's part of what we're seeing here with the Trump trade. Remember, we mentioned that this market very much is pricing in a Trump win. So, if he does win, know that you could see some reversion in some of these things. But, you know, you just always have to assume that stocks don't lie. People do. That's what I like to say. And I think we're seeing a bit of that with rates and gold and dollar and things. And you remember, folks, here's something else to always think about when we get into these challenging times, these turbulent times. To Jason's point, there's what he was giving the analogy about Japan selling the government treasury using that, of course, drives up the yields and things. There is so much that goes on that even he and I don't know, right? Sure. But with governments and currencies and this and that and buying and selling and different things like that, that ultimately do have an impact. You know, with the algorithms and so on and so forth, that move this market that no one will ever know, right? We never know exactly why something happens. All we can do is give you our best educated guess just like anybody can. I mean, you know, again, this market has a life of its own. And, you know, we can try to use our years of experience combined over 50 years between the two of us and put our heads together and try to figure out what the strategy is. And that's part of the playbook that we always have to deal with. But when it's all said and done, you know, it's not like a headline comes out and goes, "Hey, did you know on October the 23rd that Japan came in and, you know, sold a billion dollars worth of U.S. government bond?" No, you never know. It's never, never known. Okay. So with that said, when we come back, let's get down to some of the damage that was done today. Again, nothing too severe. Wasn't even a one-point loss on the Dow today, 1.6 decline on the NASDAQ. S&P wasn't even a 1%. So by no means was this a disastrous day. But it was a day again that you want to kind of sit up on your chair and do some of the things that we're going to talk about in our playbook today. We're going to hit some of the big movers today. We'll talk a little bit about McDonald's and what happened there and some of the big tech names that sold off. And oh, by the way, that little tiny company called Tesla, and we put it after the close today. And I think they're going to be a savior for us tomorrow. I'll tell you what I mean. First, let's turn it over to Kristen Snow. She's going to tell us what she means looking at the highways of Northern Nevada. Hey, you doing, Kristen? Welcome back to the John Sanchez Show on his stock 780kOH. Listen, we finished down the following. A 410 decline on the Dow of 40, 2005, 14.96% loss. NASDAQ gave up 296 points, 1.6% and the S&P lower by 54.92%. All right, before we come back to the market, let me give you a quick reminder. My buddies and friends over at S&P, a tractor 1 meter remind you, it's coming to the end of the year and they are willing and dealing on those coyote chactoring. You know, the models that will last you for sometimes a lifetime. They really will. They are built that well and they will last you that long. They got the small models, the big ones, everything in between and all the implements. Stop by and see Stan and the crew. 4880 East Nylon and Carson City online at s&wtractor.com. And of course, 882-1225 is the phone number. All right, so let's get down, Jason, to some of the details. You give a great overview as always. Let's get down to some of the details of what happened today. So first, I'm going to start this off with some good news. And that good news is we had Tesla's earnings released after the close today. And this is already having a nice impact, at least on the NASDAQ futures, which are, you know, obviously very early they started trading, but NASDAQ futures up 71. Dows are down 74. S&Ps are higher by about 6. So it can have a good positive impact overall, right? But here's what happened. Tesla made 72 cents a share. Estimates were 58 cents. Revenue was a little bit like 25.18 billion estimates, 25.37 billion. So they missed on the revenue side. But revenue increased 8% in the quarter. Overall, net income up to about 2.17 billion, which is a big increase. That's 62 cents a share, big increase from a year ago, where it was 53 cents. Profit margins, bolster by 739 million in regulatory credit revenue during the quarter. So on so forth. So overall, good report, and both the stock is moving nicely in the after hours. You just never know with Tesla how they're going to report. Regular session, they finished down $4.32, a 1.98% loss to $2.13.65. Right now in the after hours, the stock's up $12.25 and 68 cent gained to $2.39.33. All right, now let's get to what happened today. So we knew this was going to be a tough day. We mentioned this on the show yesterday because of McDonald's, right? It wasn't long after the stock market closed yesterday. McDonald's announced, or the CDC announced, that they were dealing with reports of an E. coli breakout, that, of course, put pressure on the stock. It was down 18, 21, 22 right around there, kind of held that negative number overnight. Finished the day down $16.23, so they, no pun intended, took a little nibble out of it today and started getting a few shares added to the portfolio. 5.2% lost to $2.98.46. You know, Jason on this McDonald's scenario is talking with a friend about this one today. What's ironic about this whole thing is the CDC knew about this a week ago, and they just came out yesterday. I think that's disgusting. When you're talking, you know, human lives, you know, one lost and many, many sick, and the government doesn't tell you until a week later, man, there is something wrong with that system. Yeah, I mean, and again, also two McDonald's, right? They can go out and right away, and they were on, I think, the Today Show or some show this morning, I heard where the first thing that the CEO was saying is, oh, we've isolated it, keep coming. You know what I mean? Basically, like, you know, and it was just so interesting that, you know, that was sort of the posture that they felt. Well, you would think too, you know, as mentioned on CNBC with one of the guests today, and I forgot because we've had so many of these, but I forgot, you know, we dealt with this with Jack in the Box a few years ago. We dealt with this with Chipotle, just, you know, not long ago either. Both of those stocks, of course, more than handsomely came back on it. But, you know, you would think with these large restaurant terrors, you know, they have many centralized kitchens and so on and so forth. I mean, when you're a franchisee, you know, nothing is done in-house, right? Everything comes via semi-truck. You would think there would be better controls as far as testing. I mean, E. coli is not hard to test for, especially on the meat side. But, you know, on the onions, which is what they're blaming this on, it can be tested. And so, I don't know how this one got away. Mr. McDonald's being the great company they are. They're going to change some of their policies and procedures for that. But I just thought, you know, again, I don't think that was right whatsoever. The CDC finding this out, I think it was October the 11th. And then they don't make the announcement until October the 22nd. So, that was one of the major pressure points, of course, of the Dow today. But it was a day also where you had a number of companies. Matter of fact, only three of the companies finished positive today. So, it was very widespread negativity, a lot of that attributed to what Jason just said about the rising bond yields. We had Amazon down $4.99, 2.6% loss. Then we had other tech names come under pressure. Apple down $5.10, 2.2% give up. Even Nevada came down with everybody. $4.03 loss there, 2.8%. So, let's talk about these tech names just a little bit because, obviously, these are part of the playbook and in many of our listeners' portfolios. The weakness in the tech stocks today, long-term, short-term, what do you think on that side of it? I think short-term is still probably profit-taking more than anything else. Remember, they're the biggest part of the S&P. So, if you're selling, you're selling these things more aggressively. Apple, interesting chart-wise, it's sort of at the edge of a breakout, which I think that's part of a challenge for it on the flip side. Names like Microsoft look like they're breaking down. Amazon is sort of in no-man's land. But all of these are going to be bellwethers and given how big they are inside of the many benchmarks, they're going to tend to be the tip of the sword. So, weakness in Apple today could be bought in the like amount tomorrow. Remember, interest rates going up classically is a headwind for technology, not necessarily Apple and Amazon and all these that have lots of money. But, you know, they've been defying gravity a bit in the face of rates. And, like I said, today just felt a little more like the market finally was saying, "Oh, wait a minute. This may not be a good thing that gold's going up and rates are going up and all this stuff at the same time, especially given, like you mentioned earlier, we're so close to recent highs." Yes. But, as we talked about, the mechanics of things with the buyback starting with the election volatility, hopefully in the rearview mirror soon, because, gosh, I can't wait to not get text. You and me both. I mean, the amount of stuff you could send to your house, I could play a goldfish. We're taking a poll. Right, exactly. But now, things shall get better at some point. Yeah, indeed. Yeah, there's nothing fundamentally breaking down again. Bond yields number one issue at this point. Meta today also was a telephone down $18.32, but that's talk assessment day after day after day after day. It's been moving up. Google was down $2.34. Kind of almost a 5% gain on AT&T, though, up above 4.6%, $22.50. And then, I want to mention Boeing and IBM here. Boeing, remember, tonight is a very big night for the company. Had an excellent interview. I highly recommend, if you are a Boeing shareholder, you go to CNBC.com, click on their videos. Early this morning, I think in the 6 o'clock hour, if I remember Boeing's CEO was interviewed. This guy's got his work ahead of him, but I think he's, you know, he appears to be a pretty good leader at this point, really talking about changing the culture and, you know, doing a lot of things that have fundamentally gone wrong with Boeing for many, many years. And so, but the big news, of course, for today is the machinists, which have been on strike for well over a month. They are voting to ratify a new contract this evening. So, hopefully, we will know tomorrow whether it's going to go through, but the CEO did indicate seem to be pretty confident that it was going to go through. And this company can start, you know, healing a little bit, but head of that stock down $2.82, $1.57.06. And then, finally, the reason the Dow features are down right now, IBM did report out to the close. I didn't get a chance to look at the numbers on them if you did, real closely, but obviously there was some type of a miss. There are stocks down 2.9%, $6.75 loss to 2.26 this year. Did you get a chance to see any of the numbers? I did not, but that stock, obviously, has done quite well over the last year or so. So, could be used pure profit-taking, but I didn't get to see the numbers specifically now. Yeah, yeah, exactly. All right. When we come back, we're going to start laying out a playbook. Here are some of the things that we are doing in our portfolio. Not saying it's right wrong or indifferent for you, but you know what? We're just going to give you some ideas. Here's the ear news. Jay said, just bold them up for IBM $2.30 a share estimates $2.23. Rev $14.97 billion. Yeah, here's the miss. Expectation was $15.07 billion. So, yeah. What's a few zeros here? Just a couple. Not even zeros, actually. All right. You're now up to date on what happened today's volatile session. When we come back again, we'll lay out our playbook for you. But in the meantime, Mr. Neff is going to lay out the news playbook for you. Great. Welcome. Welcome back to the John Sanchez Show on whose stock $780KOH. We're going to have a little bit more than $200KOH. We're going to have a little bit more than $200KOH. We're going to have a little bit more than $200KOH. We're going to have a little bit more than $200KOH. We're going to have a little bit more than $200KOH. We're going to have a little bit more than $200KOH. We're going to have a little bit more than $200KOH. We're going to have a little bit more than $200KOH. We're going to have a little bit more than $200KOH. We're going to have a little bit more than $200KOH. We're going to have a little bit more than $200KOH. We're going to have a little bit more than $200KOH. Costco announced that they were partnering with Peloton to sell their bike plus and in the store as well as online as the company said they're looking to reach younger, wealthier consumers with discretionary income to buy pricey exercise equipment. What I'm talking about today is how can a guy like this, and I'm talking about a fellow by the name of David Einhorn, Greenlight Capital. You classify them as a hedge fund, right? Yeah, most definitely. I think they're private equity. I think they're hedge fund. They're hedge fund. Yeah. So how do you get away with this? So he's at a Robin Hood Investors Conference and he's pedaling on a Peloton. And he said, "I think Peloton shares are undervalued." Now, he didn't say by how much, but he did move the stock higher. Right now it's up 11%, 62 cent gain to $6.27. Right. However, what people don't realize is his firm, as of June 30th, owns $6.8 million of the Peloton stock. Mm-hmm. So this is a lesson, folks, that Jason and I have caution about this for so long. When you see these hedge fund managers, because they can get away with a lot of things, I just got a Costco email. How bizarre? They can get away with a lot of things publicly going on, you know, national television or wherever it may be on the internet, et cetera. And saying, "Hey, we love this company or we hate this company." And we've always said this is a prime example that hints the reason I'm bringing it up. Be careful. They are, I think you used the term before, Jason, they're running their own book, right? We all know that term. And so when they come out and say, you know, for those poor investors that say, "Oh my God, you know, David Einhorn, saying the stock's undervalued, it's up 11% now." Well, that's because the guy owns the stock and he wants it to go up. Whether he believes it can go up or not, he owns the stock probably is down, I'm guessing. It would be my guess because the stock has just done nothing. It's been a terrible, terrible investment. Just a little learning lesson there. Good company, bad stock, right? That's Peloton. Yeah, yeah. I think it's just a broken model. To be honest, I'm surprised they've lasted this long. Yeah, I mean, they were such a COVID darling for sure. Exactly. Exactly. But not a recurring revenue model are always nice, but eventually people are like, "Wait a minute. How much am I paying every month to hang in the clothes on that thing?" Probably cut that cost here. Yep. But the stock I'm just looking right now is down on August the 12th. It was down closed at $3.02. So it's been a double. Yeah, it's been a double. Anyway, just be careful with that, folks. All right, our playbook. What do we do? What are we doing right now? A better way to put it? What are we doing right now with our clients in our playbook, right? Because we're not going to tell you ever, ever, to do something that we are not doing. So we're going to start off this segment talking about our playbook at Sanchez. Wealth management. What we're doing, we're not going to give you all of our secrets, but we're going to give you a pretty good idea of what's going on. And then we're going to go through a couple scenarios here about your portfolio and what's going on there and some of the things you need to be thinking about. Again, as we come into the end of the year, we're in the fourth quarter, and we want to make sure that you're positioned right again. It's always a good time when things are volatile, a little nervous, a little scary right now to make sure you're doing the right thing. So let's start off, Jason. What are we doing right now? Well, I mean, again, it depends on the strategy, right? The bulk of our portfolios are sort of core and tactical, but the tactical part of our book, we're sort of looking and seeing, especially getting over the last month or so, do we have some sensitivities that we weren't really positioned for, right? With rates moving the way they are, like I mentioned, sort of counter-trend to where people had imagined with gold moving the way it is, commodities in general, silvers doing the same with the dollar moving up, right? Like, are you positioned for this move? Is this move in line with your expectation? Does your portfolio react in the way that you would have expected it to? Or do you maybe have some bets that, you know, or either stale or need to change? That's what we're always doing, but this is one of those times where when you see this pronounced trend of rates changing, it's always a good time to see how is my stuff responding? Like, you'll get days where rates are up or rates are down or gold is up or gold is down over a day or two, but to have day and day and day and day and day and see in a nice little vacuum how your portfolio responds, those are times that are very helpful for you so you can go and see how did my things do? Did this act the way it does? Do I have more of a bet here than I intend or less of a bet here than I intend? So it's just a good observation period. It's something that we always do, but these are really nice times, you know, as John and I spent a lot of time this morning, you know, kind of picking through things to see, you know, how did things react and, you know, did they do what we wanted them to? Right. Remember, folks, we really manage money in two different formats. We have our internal portfolios that Jason and I manage and choose the investments, make all the buy, sell decisions, et cetera. And then we have our institutional portfolios where we are hiring the best money managers for a tranche of the client's money. So what I mean by that is, let's say someone, you know, you got 100% to invest, I don't have a dollar amount, we'll determine, all right, we want 20% with this manager who is a great large cat manager. We want 10% with this international manager and so on and so forth. So we are hiring managers and leaving the day to day strategies of those managers up to them, right? They are those experts in those respective niches. But our job is we do each and every day and this man does an incredible job about it. We are watching their portfolios every single day. And if we don't agree or if they start underperforming, whatever the case is, we have discussions with them and find out what's going on and so on and so forth. So that's how the institutional money side of our business works is hiring the institutional managers. But we are overseeing them. And the analogy that Jason and I always like to give and I think this is what really resonates with people is, imagine you decided you're going to build a custom home, right? And the first thing you do after you get the design all agreed upon, you hire a general contractor. Well, that general contractor is us in this example. What does the general do? He or she goes and hires the subcontractors, right? The framers and the landscapers and concrete and so on and so forth. Our subcontractors are these institutional managers. So we know what our clients with their risk tolerances, their goals, et cetera, these managers don't. They'll never talk to you and so on and so forth. That's our job. So we designed, again, we hired these subcontractors to build the house for our clients. But we monitored them every single day to make sure they are doing what we want them to do. And if they don't, frankly, I'll be real blunt. We fire them. Luckily, we've only had to fire one manager and what, over five years, Jason, something like that. Yeah. Yeah. There's these guys are, and guys and gals are phenomenal. But that's how we do it. And again, we're doing everything that we're telling you about. So if that's of interest, of course, give us a call and we'll show you in more detail. But now let's talk about you for a moment. In your playbook going into this last few months of the year, this is the time, Jason, just touched on this. Let's go a little bit deeper, Jay. It's time to dig deep into your portfolio, right? You kind of peel things back and say, okay, what do I own? Most importantly, why do I own it? And most importantly, do I understand it? You've all heard the analogy for Warren Buffett, of course, one of the greatest investors of all time. He doesn't buy something he doesn't understand. Do you understand every investment you have in your portfolio? Do you, if you bought XYZ stock and you never heard of it before, but you heard it talked about on CNBC or Bloomberg or you saw it on a chatroom or something, do you really understand it? And again, why do you own it? So this is a great time to dig into the portfolio. But hopefully you do have a diversified portfolio as we always emphasize, as Jason gives a great analogy, you don't want everything going up at the same time. You don't want everything going down at the same time. That is not diversification. So a day like today probably should have had a few positions that were up, but probably the vast majority were down, but digging deep into that portfolio, take it from there. And it is, and it's, I mean, again, we do it all the time, so it feels like more commonplace, but easy for you to do quarterly or monthly or whatever is best, sometimes daily is too much just as an FYI, because some people do, and it can chop you up quite a bit. But what has worked so far this year doesn't necessarily mean that's going to work over the next month or two months or right, but that is the one takeaway from a potential change to Congress or a potential, obviously, somebody's news coming for the presidency. There may be areas that, like I said, if the market is pricing in a higher probability than not of a Trump victory right now, just given the underlying moves, go look and see what has worked. And that can help you, again, to position potentially if you're someone more short-term or on the flip side, if you're finding things that you own are really underperforming, they could continue to underperform if the markets are right. So any sort of tea leaf that you can throw into your viewing, take advantage of it, because it doesn't come very often, and like I mentioned, the trend in rates over several weeks and how parts of your portfolio have acted, those are nice little views, and it helps a lot for not only now, but in the future when you go to pick whatever stock or whatever sector again, knowing, hey, what if rates move up, how's this going to act, here's a good chance to give you a sense. Love it. Love it. We're in advice for you in your playbook when we come back, let's wrap it up with Kristen Snow in the right now at Traffic Center, Kristen. Welcome back to the John Sanchez Show and his stock 780K OH, what Jason got four or ten loss on the Dow down to 96 on the NASDAQ and a 54-point decline on the S&P. Not a better time than when things are volatile to really delve deep into your portfolio. And that's what we've been talking about investing playbook for uncertain times. What do you need to do? Well, we shared with you what we do. Now, in regards to your portfolio, we started our first of three points. Time to dig into your portfolio. What do you own? Why do you own it? Why do you understand what you own? Let's go to our second point, which is, is your portfolio achieving your goals? Now, how many times have you decided to make an investment with no goals whatsoever? Your goal may be, I want to make money. Well, that's a dream. It's not a goal. A goal is something that is specific. I want to make 10%, 15%. I want to avoid a 5% loss. Whatever it is, is your portfolio achieving your goals to get away? Yeah. I mean, I think you nailed it, right? It's also, do I want to buy gold or silver because I want to protect against inflation? Do I want to own this stock because I also shop at the store all the time, and I want to take advantage of all the strength I see, right? It doesn't necessarily have to be a percent or gain loss, but having some rigor around the position, because more often than not, those ones that you're just looking at that you're not really doing anything with, they're probably down. And you're just letting them bleed out for either apathy, not wanting to take a loss, or some sort of thesis creep where you figured out, "Oh, well, now I think they're going to do this." Those are the ones that you want to look at because, hey, in a taxable portfolio, you can always look to do some loss harvesting, right? Maybe punt those things this year to offset some of the other gains that you've had in taxable accounts, or potentially reduce some of your income from a tax standpoint. So just times to be looking to make sure everything has a good fit, and if it's in there just because it's a zombie of some kind, maybe do a little work and see if now is the time to set that zombie free, especially as we're getting here close to Halloween. Yeah, I was going to say get a knowledge of Halloween. And then our last point, don't be afraid to make a change. It is hard. Especially if you've owned something for a long time, maybe you have some sentimental attachment to it. Like I said, one of the hardest things I remember as a young broker was trying to convince an oil executive, when I was in Bakersfield, trying to convince an oil executive to lighten up his 90% allocated portfolio to an oil stock that he worked for. And as one person said, "They put my kids through college and let us admire for his house." Well, that's great. But 90% of your portfolio is in one stock, right? So don't be afraid to make a change. Change is good. Time to freshen things up. And again, blow off the dust of a playbook. So hopefully this helped. If we can be of service, you know, where to find us. Great job, Jason. We'll do it again tomorrow on the John Sanchez show. God bless. Have a great evening. Sponsored by Sanchez Wealth Management. The material in this program was intended as general information only and should not be taken as specific investment tax or legal advice. None of the information on this broadcast was intended to be a solicitation for the purchase or sale of any security. Further information is available by contacting john@sansheswealthmanagement.com or 775-800-1801. John Sanchez offers securities and advisory services through independent financial group LLC, a registered broker, dealer and investment advisor member FINRA SIPC securities offered only in states John Sanchez is registered in Sanchez Wealth Management LLC and independent financial group LLC are unaffiliated entities at sprouts farmers market. We're all about fresh, healthy and delicious. That's why you'll find the season's best local and organic produce handpicked and waiting for you in the center of our store. Visit your neighborhood sprouts farmers market today where fresh produce is always in season. You
Investors are finding themselves in a predicament. Bond prices are falling and yields rising, mortgage rates are nearly one half of a percent higher since the fed cut rates, they are uncertain of the economic impact of the election and of course many are concerned with the Middle East tensions. So what’s an investor to do? We’ll share with our playbook.