Redrick Terry:
It is now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. David, welcome back.
David Nelson:
Thanks, Redrick. Appreciate it.
Redrick Terry:
Absolutely. So it seems like the stock market is moving back up and it has been for the last several weeks. Where are we at right now?
David Nelson:
So the chart that I brought along today as far as chart number one here is going to give people a nice visual as far as looking back, just give or take a year from where we were to this nice drop off that we had as far as in the fourth quarter last year. Now we’ve come back to literally all time highs. This has been a really impressive move. The interesting thing about this, I think, when we talk to people is when you do hit all time highs, markets have a tendency to do the best when you’re at these high levels. Valuations, different story. But clearly this has been a very impressive move that’s taken place here over the last several months and, again, hitting all time highs. We’re excited about that.
Redrick Terry:
Absolutely. And with the concerns surrounding the global economy amongst other things, should investors be worried about the current level of the market?
David Nelson:
Yeah, I think so. Again, we start getting to these levels, the returns happen to be the best, but they also have the potential as far as the biggest drops. So that’s a very, very important cautionary thing that individuals need to be aware of. The other thing that we need to point out is when you start hitting all time highs, in chart number two here, I think will again give people a nice visual of this. So we had this significant drop that took place in late 07 through early part of 09. It took to 13 to get back to where we were. So 2013 from the start of late 2007, those are the things that people should be concerned with because, again, when these happen, it basically takes away all the gains and you’re fighting to get back to where you were. And this particular one four to five, six years depending on what you’re invested in. So again, all time highs, good news, but definitely people need to be awake.
Redrick Terry:
Now, based on our previous conversations, that doesn’t necessarily mean that the coast is clear.
David Nelson:
Correct, correct. Macro issues are still questionable. Geopolitical, the battles that are taking place literally this week as far as in Washington, very significant. But again, at the end of the day, people need to be aware. Risks have increased, but returns actually historically do the best at these levels. So use risk management to help minimize as far as the potential downside, and I think people could be okay as far as with today’s levels.
Redrick Terry:
Good news indeed. David, thanks so much for doing this.
David Nelson:
Thanks, Redrick. Appreciate it.
Redrick Terry:
Of course. And if you missed any of our conversation, we’ll make it available to you on our website at OurQuadCities.com.