Conversations with LVM Capital

Tyler Alvord and Jordan Rummel answer retirement related questions sent in from listeners. Questions covered: When should I start investing and when do I need to hire a financial planner? How much do I need to retire? What are the different types of retirement accounts? What are the differences between a Roth IRA and Traditional IRA?  

You may notice the inflationary pressures hitting this podcast episode as it is a little longer than title suggests! 

Join Tyler Alvord and Sahana Madhanagopal as they discuss the semiconductor shortage and its impact on the auto industry and your local car dealership. Shifts in demand and labor shortages from the pandemic have led domestic auto inventories to their lowest levels on record going back to 1993. While semiconductor companies and the public sector have pledged billions of dollars to increase research and production, these efforts will take time before being absorbed by the supply chain. Don’t expect your local car dealership inventory lot to return to normal levels anytime soon. 

On Today’s show Tyler and Jordan discuss the second quarter earnings expectations for the S&P 500. Estimated earnings growth for the S&P 500 is 63% and would represent the fastest year-over-year earnings growth since 2009.  Higher commodity prices are expected to benefit the Energy and Materials sectors while the Airline industry continues to improve, but expectations are still for a net loss during the quarter. Jordan is most interested in the Banks and Homebuilding industries keeping an eye on interest rates and home prices. Tyler is focused on consumer spending by following Visa and card transactions. 

On today’s show Tyler is joined by Chuck Prudhomme to discuss the power of compounding. They review an example of investing early versus late and examine how Warren Buffett’s wealth has compounded just after the age 60. Tyler and Chuck discussed some savings and investing concepts from Morgan Housel’s book the “Psychology of Money”. 

The Consumer Price Index (CPI) increase 5% year-over-year in May which was the largest increase since August of 2008. The increase was larger than the 4.7% increase expected by economists with used vehicles prices climbing the fastest. We discuss what the impacts of inflation are on investors.  

On today’s episode we discuss the May Employment Report (“The Jobs Report”) release by the Bureau of Labor Statistics (BLS). Payrolls increased by 559,000 and the unemployment rate fell from 6.1% to 5.8%. We discuss where the jobs are coming from and the struggles that remain to getting back to pre-COVID payroll levels. 

S&P 500 first quarter earnings season is complete with earnings growing over 50% year-over-year in the quarter. We break down the companies and sectors who had a strong rebound in the quarter. Companies discussed include The GAP, Pool Corp, Walmart, Apple, and more. We look out to the second quarter of 2021 and the expectations for growth.