Diversification Works
Market corrections, recession narratives, and government spending
In a week of sharp decline, we’ll discuss why market corrections are not unusual, volatility is expected, and diversified long-term strategies are key to managing risk. We’ll also talk about the recession narrative, analyze inflation/rate trends, and look at what levers the Fed can pull. We wrap up with a conversation on government efficiency initiatives and what they mean for the job market and the private sector.
Key Takeaways
- [01:10] - Understanding market corrections
- [05:47] - Recession narratives and what the Fed can do
- [10:16] - Diversification works
- [11:52] - Updated outlook on inflation and rates
- [16:00] - Eliminating gov’t spending + reallocating to the private sector
- [21:06] - Musk, Tesla, and Magnificent 7 performance
Links
- JP Morgan: Average intra-year decline = ~14%
- Historic S&P 500 corrections since 1965
- Fastest market corrections since 1950
- Market-implied US recession probability in the next year.. 20%
- 25% of jobs added in the US economy over the past two years were government jobs, up from 5% in 2021 and 7% in 2022
- Unemployment filings up 15% in DMV
Connect with our hosts
Subscribe and stay in touch
Disclosure
The information in this podcast is educational and general in nature and does not take into consideration the listener's personal circumstances. Therefore, it is not intended to be a substitute for specific, individualized financial, legal, or tax advice. To determine which strategies or investments may be suitable for you, consult the appropriate, qualified professional prior to making a final decision.
Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies referenced in our blogs/podcasts) or any other investment and/or non-investment-related content or services will be profitable, equal any historical performance level(s), be suitable or appropriate for a reader/listener’s individual situation, or prove successful. Moreover, no portion of the blog/podcast content should be construed as a substitute for individual advice or services from the financial professional(s) of a reader/listener’s choosing, including Stokes Family, LLC, a registered investment adviser with the SEC, with which the blogger/podcasters are affiliated.
