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Redrick Terry: It is now time for 4 Your Money. We’re joined by John Nelson of NelsonCorp Wealth Management. John, welcome back.
John Nelson: Thank you Redrick, happy to be here.
Redrick Terry: Of course and we’ve talked a lot on this segment in the past. We’re well into the current market cycle where things have kind of gone well for investors. So what should people be thinking about at this stage?
John Nelson: Yeah, I think it’s just that Redrick. Our first slide here will show that the performance the last 10 years has been quite good. So since March of 2009, you can see this is the average of the S&P 500. Over 220% gain. It’s been significant. So with very little volatility along the way. So we think at this point, you know, we’re 10 years into a bull market. We’ll see with the volatility that’s currently picked up with tariffs and other things at this point, but just people analyzing you know, 10 years into a bull market, how are they set up currently and if adjustments are needed. Again, this would be probably a good time to revisit some of those things.
Redrick Terry: Well certainly. We love seeing things pointing up, that’s for sure. But what do these gains mean for people with individual stocks?
John Nelson: Yeah, so individual stocks, there’s wide disparity the last 10 years and this next slide will illustrate that there’s been some big winners and big losers throughout the whole process of last 10 years. But the top 50 percentile, again this is the S&P 500 same timeline since 2009. We’re seeing 645% return. Working our way down the top 10% of stocks almost 1500% return. And then the bottom one, that one’s real fun to look at. The top 1%, over 4000% rates of return.
So a lot of companies have done quite well through this time. And again, if you’re one of the lucky few that make the top 10%, it may be a time to revisit some things to see if you know, it’s great to make, it’s better to keep and this may be a good time to look at things.
Redrick Terry: Yeah, very impressive numbers obviously, but where does that leave people who are concerned?
John Nelson: Yeah, so there’s many strategies that we utilize with clients all the time, of putting in safety nets where, hey, I’ve done quite well for the last 10 years, but what are some things that can be done to protect on the downside. One being selling over a period of time, rather than taking one big hit in selling in one year. We can systematically sell over a three or four year period of time. It can make a lot of sense for a lot of people. Another option is an option strategy that can be applied to stocks where you can have some downside protection, whether you’re willing to sell it or if you’re wanting to hold onto it. Those options strategies play into a big effect for a lot of clients that we work with.
Redrick Terry: All right, John thanks for coming in, we appreciate it.
John Nelson: You bet.
Redrick Terry: Thank you Redrick.
John Nelson: Of course and if you missed any of our discussion, we’ll make it available for you on our website, ourquadcities.com
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