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

John Nelson:
Thank you. Happy to be here.

Redrick Terry:
Absolutely, we’re glad you’re here as well. So US stocks had a pretty rough week last week, but it turns out we weren’t the only ones in that regard.

John Nelson:
Yeah, that’s exactly right. We shared in a blog post last week that Argentina of all places had an even rougher week. So it puts things in perspective a little bit. Looking at this first graphic, they had an incredible run. This is all so far this year in 2019. Nice run to start the year followed by 24% decline, but here at the end, a 54% increase followed by a 38% decline in one day. This looks like a chart for a biotech company or some startup, but this is actually their entire market and their currency and bond market has followed a similar trend, not quite to this degree, but also very difficult volatile place. So puts things in perspective, here in the US not quite as bad.

Redrick Terry:
Certainly doesn’t. And speaking to bring it back to the United States, how was this past week for local investors?

John Nelson:
Yeah, so we have seen some volatility pick up, but in terms of overall price decline here in the US market, it actually hasn’t been as significant as as many think. This next graphic is just going to show the S&P 500 here at the top and the VIX, the volatility index here in the bottom. Now thinking back here, the last quarter of 2018 was a 20% decline here in the United States, so volatility was quite high to start the year. You see the steady fall and the rise in the US market until about May. Volatility picked up, a little sell off here in the US and then here we are the last few weeks, somewhat of a sell off, volatility back to where it was at the beginning of this year, but in terms of overall price decline, nothing significant, 5, 6%.

John Nelson:
Unfortunately, it’s not fun when you’re in it, but part of the investing process here in the US and in the equity markets.

Redrick Terry:
That’s certainly lots to think about during this volatile time. So what should investors be thinking as they move through this period?

John Nelson:
Yeah, I think this is a good time for people to step back and look at their overall investment objectives and where they are currently positioned. This is a good time to see that, you know, maybe what has worked for some time before may need some adjustments or overall just analyzing how you’re set up and what changes, if any need to me made going forward. Not just in the stock market but the bond market. We’re at all time record low yields in terms of bonds. So analyzing that and making sure you’re positioned for longterm success.

Redrick Terry:
John, thanks as always, we appreciate you coming in.

John Nelson:
You bet Redrick, thank you.

Redrick Terry:
And if you missed any part of our conversation, we’ll make it available for you on our website, ourquadcities.Com.

Back to all TV & Radio