Redrick Terry:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. David, welcome back.

David Nelson:
Thanks Bernard, appreciate it.

Redrick Terry:
Of course. So you share a lot of economic data over the past couple of months and it seems like those headlines are getting more and more one-sided in unfortunately not in a good way. Tell us some about some of those most recent releases.

David Nelson:
So yes, you’re right, the data continues to go down the path that we’ve been talking about for quite some time. Not necessarily good. The ISM manufacturing index is the focus today. We’ve got a slide here that we’ll kind of walk people through it. But in a nutshell, what we have, it’s looking at manufacturing, manufacturing and all the variables tied to that. And a key area here is this line right here, which may be tough to see, but it’s 50. And when you’re above 50 it means that we’re expanding as far as manufacturing is expanding. And when we’re below it means that things are contracting. Now, what we find is that since ’18 early ’18 late, late ’17, is that we’ve had this steady decline. We’ve broken through 50.

David Nelson:
People can call it what they want, bottom line things are not looking good, and this is certainly not something that we want to continue. This is important. I know people, sometimes we look at this and why do I care? You should care, because manufacturing is pulling back. We’ve seen it locally as far as with some of the manufacturers laying off some individuals, this is not what we want to see.

Redrick Terry:
So what’s driving this trend that we’re seeing here?

David Nelson:
So number two would be probably the best way to illustrate it. Two really important points as far as we’re looking at new orders, and we’re looking at exports. And again, what we find here as far as that, and again, there’s been tremendous pressure as far as… Won’t get into the political side of it, but we have some battles go on around the world as far as primarily with China. And this seems to be consistent with what’s taken place there. Here in particular, this is the export arena. And again, when we have exports that are dropping off like this. In the short term, at least this is not good news. This could turn around, again, not a political statement, it’s just looking at facts, and the facts are what they are that this is not a pretty picture as far as looking ahead as far as in manufacturing.

Redrick Terry:
Certainly, so what’s the final takeaway from all of this?

David Nelson:
So I think the final takeaway, is these are just a couple of pieces of the overall puzzle, and as we talk to folks about all the time as you want to look at the entire body to try to make a decision as far as the body of work. And so what I conclude from this, and again, we don’t want to use the term, the R word out there, recession. People are so paranoid about this coming up. It’s part of the overall business cycle. But I think this is basically a prelude as far as to a continued pullback. I don’t see anything turn things around over the next, in the short-term. So this is not what we want to see. People need to prepare and certainly as far as markets are concerned, this is create a lot of volatility as far as in the investing arena.

Redrick Terry:
And certainly stay prepared and stay up to date with it, it’s very important.

David Nelson:
Absolutely.

Redrick Terry:
David, thanks so much.

David Nelson:
Thank you.

Redrick Terry:
And if you missed any part of our discussion, we will make it available to you on OurQuadCities.com.

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