Livestream Recap: The 4 Biggest Takeaways You Need to Know
October 27th closed out the first four weeks of a normally weak and volatile October on a down note. Earnings reporting season was in full gear and the OHFG investment team was busy listening to, reading through, and analyzing management earnings calls, transcripts, and financial reports. In between all the earnings news and sometimes chaos, Troy, Charles and I found time to film a YouTube Livestream on the evening of Thursday, October 26th titled “Navigating Market Volatility”.
Before we get into this week’s content, which is a brief recap of that livestream, please take a moment to click on both the subscribe and notification bells so you will be alerted when our investment team uploads our latest content. Or better yet, give our OHFG team a call at 877-896-0040 to speak to our team and set up an initial consultation with an OHFG advisor to discuss your personal financial situation.
Over the 70 minutes of livestream, Troy Charles and I covered a lot of topics and content, some pre-submitted questions, and some real time questions from our viewing audience. I want to personally thank all the attendees for dropping in and watching, and for those who were unable to, here’s a quick recap of topics and timing when they were covered if you want to jump to specific content.
Over the first 10 minutes, we covered recent interest rate moves higher and what it might mean for your bond and fixed income holdings. We paid particular attention to the topic of “duration risk” in the bond market and how all bonds are not created equally, even those issued by the same company, institution, or government. How the bond’s maturity, or when the bond comes due for principal payment, can have a material impact on the path of the price of the bond over its term, even though your interest income or coupon the bond pays stays the same.
For those of you interested in our bond and interest rate discussion, this might be an interesting segment from the Livestream for you to watch. (time 2:30-5)
Over the next 10+ minutes, our team covered how the changes and rise in both short-term interest rates, which are those controlled largely by the Federal Reserve, and longer-term interest rates, largely determined by market players, over the last 18 months have affected stock prices through both earnings and changes in valuation metrics. We also covered the effect of rising and falling inflation and investors expectations for inflation can shape stock fundamentals. Finally, we covered one of my favorite subjects, that of real interest rates and how their rise from mid-July through late October was a leading factor in the both the rise in interest rates and pullback in the overall stock market in the 3rd quarter.
For those of you interested in our interest rate and stock discussion, this might be an interesting segment from the Livestream for you to watch. (11-14) or if you want to hear more of Charles and are bored of me? (19:30-21)
In the middle of the livestream, we took about 10 minutes addressing stock market and interest rate cycles. This discussion emanated from a viewer’s question from a about why stocks performed so well in the 1980’s with interest rates higher than where they currently sit. We spent a lot of time discussing friction, which is my nice term for added costs, in the stock markets, (23:30-28).
Our 4th segment was a discussion on dividend growth stocks and our OHFG quantametal methodology, SMR, for finding them and using them in broadly diversified equity portfolios. Charles led this discussion and here’s a quick link to that segment. (30-34).
We wrapped up the evening with a broad discussion on what I call “news or noise”. A discussion on government data and its relevancy for making investment management decisions versus using real-time market-based data in decisions in your portfolio. (37:30-41). We ended the night with a further discussion on what might be in store for the year end in the markets. (45+).
Investors, that’s it for this week. We are trying to be brief, because the OHFG investment team is busy processing and analyzing the second half of 3rd quarters earnings reporting season and making adjustments to our models and clients portfolios as we see fit.
Oak Harvest Financial Group manages broadly diversified equity portfolios that balance risk and reward for our clients. The investment tools our advisors and financial planners use are usually a combination of markets based and insurance-based tools to meet your retirement goals.
Our dedicated in-house investment team is busy working on some new tools for our advisors and retirement planning teams to use in the future. Stay tuned. The future and stock markets are always uncertain and that is why our retirement planning teams plan for your retirement needs first, and your greed’s second.
Give us a call to speak to an advisor and let us help you craft a financial plan that helps you meet your retirement goals. Call us here at 877-896-0040 and schedule an advisor consultation. We are here to help you on your financial journey into and through your retirement years.
CFA®, CLU®, ChFC®
Chief Investment Officer, Financial Advisor
Chris is a seasoned investment professional with over 25 years of experience working with some of the most successful money management firms in the world. Chris has made it a point in his career to adapt as the market landscape changes, seeking to utilize the appropriate investment strategy for a given market environment. His transition from managing billions of dollars at the institutional level to helping individuals and families retire is guided by a desire to see first-hand the impact he is making in the lives of clients at Oak Harvest.