Stock Market Today: Stormy Markets Ahead..Markets Due for a Pull Back
Channel: Trent Grinkmeyer - Stock Market Investor
Date: 2020-09-03

Markets have hit all-time highs while unemployment numbers remain in double digits. This is a narrow rally and due for a correction. How big of a correction? Only time will tell. Risk management is the key. How are you measuring and managing your portfolio risk? Price, volume, and volatility are your leading indicators to where the markets are headed.  

Having a process to your managing your investments and risk is the key.

Trent Grinkmeyer is co-founder of Grinkmeyer Leonard Financial. With over 20 years of experience in managing investment portfolios and retirement planning, he has built a process for investing and risk management. 

Email: tag@grinkmeyerlonard.com 
Website: https://taglivingloud.grinkmeyerleonard.com/en-us/investment-stock-bonds-retirement-planning-retirement-income
To schedule a time to talk for 30 minutes: https://calendly.com/taglivingloud/financial-planning


Stocks | Bonds | Real Estate | Passive Investing | Retirement | Retirement Income | Risk Management

So I got into this business in '98, where I was an analyst for a financial advisory firm that I was with. I started out during the whole tech boom and then got to enjoy the ride of the tech bubble and then eventually the housing bubble and now the ending of the debt supercycle, which we're experiencing now. The common thing I see right now is that this rally since the end of March has been a really narrow rally, and it's all in technology. So really, if you look at the indexes, like the S&P 500, the NASDAQ, and even the Dow now, the majority of the rallies in those indexes has been driven by technology stocks. I mean, even earlier this week, we saw a major explosion in one of the video conferencing companies. I can't mention their name because I don't have freedom of speech because of the industry I'm in.

Anyways, that's a bone of contention that I have. Anyways, that aside, we saw a major explosion in that stock. We saw one in another document signing stock recently that is just exploding to the upside. And my question is, is if they come up with a vaccine for the Coronavirus that basically squashes new case counts and all these companies that have basically said work from home strategy, does it stick, number one and or number two, do people go back to the way we were doing things back prior to the Coronavirus? And if so, all these tech companies, do we see a rotation out of tech? And where to go, I don't know, because the financials aren't great on a lot of things at this point. Does tech get crushed, and then does the indexes get crushed, and the indexing approach that we've seen over the last 10 years, do all those people get taken out into the woodshed?

This is the risk management stuff that I'm thinking about and considering. And if you look at the different macro analytics, you look at the micros, you start to look at price, volume, and volatility, and I think what you're starting to see is that the puppy is starting to rollover. I know that's a stupid saying. Whatever. Anyways, you get my point. Risk management folks, markets just don't go up vertically. They also can correct, And the question is, are you in a position closing in on retirement, in retirement to sustain a reduction of anywhere between 10 and 50% of your asset value? If you're not, then I suggest you start really, really scrutinizing what you're invested in because this rally has been super narrow, and in the end of the day, if it's a super narrow rally, that means that rally can end abruptly. And if there's nothing supporting it, like other sectors moving higher, and if you look at the data, unemployment, actual people in the labor force has drastically dropped.

You look at household debt. You look at corporate debt. You look at global debt. Solvency's going to be an issue. There's no yield in the bond market. I mean, I think at the end of the day, you need to start risk managing. And if you're in retirement or approaching retirement, analyze your portfolio and ask, "If X happens, how does that affect me?" So, I hope you have a great day, an enjoyable, wonderful day. Take advantage of this opportunity to better manage your finances, your risk management to tune up being a better investor. All right, take care, and have a great day.