Recession Monitor Discussion
Watch our video on the market performance for the week of August 8th.
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WEBVTT
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And welcome to the buy the numbers, the week
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of August 12th, 2022.
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So the Q2 statements came out a couple weeks ago,
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and if you open them, you saw
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the bleeding got a little worse.
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Most indexes at that point were down 20 to 25%.
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The good news is the month of July was a very good month,
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the best of the year, and many
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of those indexes recovered five to 10%.
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So it has gotten better.
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Now the question is, is this recovery short or long term?
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And the answer of course is we don't know.
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Um, but I wanted to share an article with you
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that was put together by our friends at BlackRock
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who are the largest institutional money
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manager in the world.
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And, and this article, just the highlight of it,
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which is attached, talks about, you know,
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the typical definition
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of a recession is two negative quarters
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of GDP, which we did have.
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However, as they look at the five major areas,
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there's really only the two in the pink
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that they have concern about.
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So, unemployment rate still looks really good.
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Lending standards look pretty good.
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Personal income, uh, virtually unchanged, looks really good.
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So those are three of the five they look at, uh,
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that appear to be very healthy.
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Now, what does this mean? Well, you know,
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just like the opinions on CNBC could be
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correct, could be incorrect.
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Uh, what we know from going back historically is
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that in any market, you should always try to continue
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to invest in, in increments every month
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to dollar cost average.
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In, um, we've also been allocating within the portfolios
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with a little bit of a tilt to value
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and lower volatility stocks, which tend
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to do better in choppy times.
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As always, thanks for watching.
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If you have any questions, please reach out.