90 DEGREE READING. STICK WITH US. RIGHT ON THROUGH THE EARLY PART OF NEXT WEEK. FIRST SAW
SENATOR THANK YOU. MARK
FEDERAL RESERVE LEVEL ANOTHER
BIG RATE HIKE TO BATTLE
INFLATION WITH PRICES RISING
AT THE FASTEST RATE IN A
GENERATION, THE FED RAISED ITS
BENCHMARK INTEREST RATE.
BIDEN, ADDITIONAL 3 QUARTERS
OF A PERCENTAGE POINT. IT’S
THE 4TH TIME THE CENTRAL BANK
RAISED RATES THIS YEAR LONG.
BOTTOM LINE, THE ECONOMY IS
HANGING IN THE BALANCE
STARTING IN THE MORNING SHOW
CERTIFIED FINANCIAL PLANNER
WITH GENESIS FINANCIAL
PARTNERS.
>>BRUCE HAMILTON: BUT DESPITE
FAST AND FURIOUS MOVES, I
GUESS IS WHAT WE CAN CALL
THEM. CENTRAL BANK HAS ITS
WORK CUT OUT FOR IT. GOAL IS
TO REIN IN INFLATION WITHOUT
KICK STARTING A RECESSION.
>> CAN THEY BRING ABOUT A SOFT
LANDING FOR THE THE FED IS
WALKING A VERY TIGHT ROPE
TRYING TO TAME PRICE
STABILITY. YOU HAVE ON THE ONE
HAND, WE HAVE A STRONG LABOR
MARKET. THE ECONOMY IS DOING
WELL, BUT YET PRICES ARE OUT
OF CONTROL. SAID A 40 YEAR
HIGH. IF THE FED IS ABLE TO
REIN IN INFLATION BY RAISING
INTEREST RATE IN CAUSING WAS
CAUGHT PRICE DESTRUCTION, MANY
LESS IN DEMAND BECAUSE YOU’RE
RAISING RATES IN THE MIX IS
MORE EXPENSIVE FOR BARS TO
BORROW MONEY TO PURCHASE THESE
GOODS AND SERVICES. THE
COMMENTS OF ALREADY SEEING
SOME SOME PROMISING SIGNS.
SOME PRICES LIKE GAS ARE
ALREADY COMING DOWN. AND
THAT’S HAPPENING THE PRESIDENT
HAS TALKED TO SAUDIS. OTHER
COUNTRIES ARE MORE SUPPLY. AND
WHEN YOU HAVE MORE SUPPLY, YOU
AND YOU HAVE LESS DEMAND AND
PRICES BEGIN TO COME DOWN. SO
WE’RE STARTING TO SEE THAT
HERE IN THE PALM WERE ALSO
START TO SEE CUTBACK IN
SPENDING, WHICH IS ALSO
SLOWING THE ECONOMY, WHICH
WILL HELP THE DEAL’S PRICE
REDUCTIONS. FED CHAIR SEEMS
OPTIMISTIC WE CAN AVOID A
RECESSION. YOU I’M OPTIMISTIC.
I’M OPTIMISTIC BECAUSE I SAY
THAT THE PAST DOESN’T ALWAYS
REPEAT ITSELF BUNNIES DATA
THAT WE CAN DREAM ON. AND
HOPEFULLY THOSE DATA ALLOW US
TO MAKE BETTER DECISIONS AND
HAVE A BETTER OUTCOME HERE IN
THE FUTURE. YOU KNOW, THE
HOUSING MARKET HAS WRITTEN A
ROLLER COASTER AND PEOPLE LOOK
BACK AND THEY SAY, WELL, OR
ARE WE IN FOR WHAT WE SAW IN
2008? MOST PEOPLE SAY, NO,
IT’S NOT GOING TO BE LIKE
THAT. BUT THEY DO SAY THAT THE
MARKET, THE HOUSING MARKET
RIGHT NOW IS IN A RECESSION OF
ITS OWN. I WOULD SAY TO THE
FIRST THING. WE’RE NOT IN SAME
SITUATION WHERE IN 2008
BECAUSE THOSE LOANS THAT
PEOPLE MADE BACK IN 2008 WITH
WHAT WE CALL NO DOC LOANS, IT
WAS VARIABLE RATE LOANS.
PEOPLE HAVE BEEN HAVE THE
BENEFIT OVER THE LAST 4 OR 5
YEARS TO LOCK IN IN VERY LOW
RATES. SO I DON’T SEE THAT.
BUT I DO SAY THAT THE HOUSING
MARKET IN THE RECESSION,
BECAUSE IF IT BECOMES MORE
EXPENSIVE FOR PEOPLE TO BUY
THESE HOMES, GET MORTGAGES,
THEN OF COURSE, YOU WOULD HAVE
A VERY SHARP DECLINE IN THE
HOUSING MARKET. STOCK MARKET
REACTED VERY FAVORABLY
YESTERDAY TO THE FED’S MOVES.
BOTH THE DOW AND THE NASDAQ
WERE UP 400 PLUS POINTS TO
NEXT COUPLE OF DAYS. THERE MAY
BE A LITTLE BIT OF A COURSE
CORRECTION, BUT LET’S LOOK
INTO THE CRYSTAL BALL UP 4TH
QUARTER.
>> WILL WE SEE SOME
CORRECTION? BECAUSE PEOPLE
WANT TO KNOW WE DO WHAT I DO
WITH MY MY INVESTMENTS ARE
KIND OF WORRIED BECAUSE RIGHT
NOW THEY SEE A BIG SURE. I
MEAN, THIS YEAR HAS BEEN A
CHALLENGING FOR MOST
INVESTORS.
>>BRUCE HAMILTON: I WOULD SAY
THAT OVER THE NEXT 2 TO 3
MONTHS, THAT MARKET WOULD
DIGEST WHAT JUST HAPPENED. IF
WE SEE INFLATION BEGIN TO
START COMING DOWN AND
BUSINESSES CONTINUE TO MAKE
MEANINGFUL INVESTMENT IN THE
LABOR MARKET STAYS STRONG. I
DO SEE A REBOUND IN THE 4TH
QUARTER THAT COULD HAPPEN. SO,
YOU KNOW, ANYTIME YOU TALK TO
A FINANCIAL PLANNER,
BASICALLY, THEY TELL YOU LOOK,
YOU GET IN THIS FOR THE LONG
TERM. SO SIT TIGHT. DON’T
PANIC. DON’T MAKE ANY RASH
MOVES. SO THE BEST ADVICE
STILL THE BEST ADVICE? I MEAN,
INVESTING IS A LONG-TERM, A
PROSPECT. IF YOU HAVE 2 TO 3
YEARS, A LOOK AT THESE AS
ENTRY POINTS WHEN THE MARKET
PULLS BACK LIKE THIS, THESE
ARE OPPORTUNITIES FOR YOU TO
SLOWLY DOLLAR COST AVERAGE
INTO THE MARKET. THESE
INVESTMENT THAT YOU ABOUT A
DAY THERE ARE DOWN IN PRICE OR
THE NEXT 12 16 MONTHS. THESE
INVESTMENTS WILL APPRECIATE IF
YOU BUY QUALITY COMPANIES.
OKAY. SO PEOPLE SAY ALL RIGHT.
I LOOK AT THE NUMBERS. I SEE
THAT THE DOW IS DOWN. THE
MARKETS IN GENERAL ARE DOWN,
BUT IT’S ONLY ABOUT 20%. THAT
TO THE RISE TO THE PREVIOUS
HIGHS AND MAYBE EVEN GO
HIGHER. VERY GOOD POSSIBILITY.
IF IF WE DON’T HIT A RECESSION
OUR SESSION, I SEE THE SAME
COMPANIES BEGIN TO MAKE
CAPITAL INVESTMENTS INTO THE
MARKETS, CREATE THEIR
PROFITABILITY. AND THEN THESE
COMPANIES WILL ALSO RISE,
WHICH WOULD HELP THE MARKET
APPRECIATE IN VALUE 20 PLUS,
BE ON THAT. I WOULD AND I
THINK IT WAS IN FORBES
MAGAZINE AND THEY SAID, YOU
KNOW RETIREE’S LOOK AND THEY
SAY, OK, I’M GOING TO LIVE OFF
MY PRINCIPLE, BUT THAT MAY NOT
BE A REALITY IN THE FUTURE.
THE 40 YEAR BULL MARKET THAT
WE’VE ENJOYED MAY NOT BE THE
LONG-TERM REALITY. I WOULD
THINK THAT IT’S IMPORTANT TO
REASSESS YOUR OVERALL
FINANCIAL GOALS. COVID HAS
CHANGED A LOT OF INFLATION
HISTORICALLY HAS BEEN TO 3%.
THERE’S TALK NOW THAT
INFLATION NOW MAYBE 45% THAT
MAYBE OUR NEW NORM. SO THAT’S
THE CASE THAT YOUR INVESTMENTS
YOU HAVE MAY NEED TO BE
REALLOCATED TO MAKE SURE THAT
YOU’RE GETTING GROWTH AS WELL
AS INCOME TO HELP PRODUCE
EVERY TIME AN INCOME THAT
YOU’RE LOOKING FOR. SO JUST
WHAT ANNUALLY I WOULD SAY, WE
TYPICALLY LOOK AT OUR
INVESTMENT QUARTERLY. YOU MAY
MAKE ANNUAL CHANGES, BUT
QUARTERLY IS A GOOD RULE OF
THUMB TO REASSESS YOUR OVERALL
FINANCIAL SITUATION IN YOUR
ALLOCATION IS AT YOUR
PORTFOLIO. BUT AGAIN, DON’T
PANIC. DON’T REACT TO WHAT’S
GOING ON RIGHT I WOULD SAY I’M
A STUDY OF HISTORY. NOW, LOOK
BACK IN PAST AND I SEE THINGS
LIKE EVEN THOUGH THIS IS
DIFFERENT IS STILL FAMILIAR.
AND WHAT I’VE SEEN THAT IF YOU
HAVE QUALITY INVESTMENTS TO
DIVERSIFY, WE’VE SEEN THAT
IT’S AT YOUR PORTFOLIO THAT
THIS, TOO SHALL PASS. AND THE
MARKET IS ALWAYS POSITIVE OVER
3, 5, 10 YEAR PERIOD. TIME.