Tape Talk | Investing, Business, Wealth, and Your Money

On this week's episode of Tape Talk, Quint and Daniel discuss the psychology of investment markets and how it's impossible to escape risk.

On this week's episode of Tape Talk, Quint and Daniel discuss the obstacles faced as states begin reopening the economy.

On this week's episode of Tape Talk, Quint and Daniel use the recent market moves to have a discussion on the difference of value versus price.

Oil Negative

This week marked the first time you could get paid to "buy" a barrel of oil. What does that mean and why is it significant?

Price vs Value

Price is what you pay and value is what you get. What does this mean when stock, commodities, or other things trade for lower prices? How can investors determine what they're really getting for the price they pay?

Current Market Value

While stocks have moved wildly over recent weeks, Quint breaks down how the value of this market may not have really changed much at all!

Patience is Key

When looking to find value it's important to remember that patience is the key factor, waiting to find the prices match the value you require is an important part of investing.

On this week's episode of Tape Talk, Quint and Daniel discuss the continued bear market rally and what the strategy might look like going forward.

Psychology

Emotions and psychology have been the theme of the recent decline and subsequent rally. Investors fled the market at any cost and are now on the verge of rushing back in at signs of good news. This is a great example of the psychology that goes along with investing in volatile markets.

Allocation Matters

When it comes to your financial plan and reducing volatility, allocation matters. The recent volatility illustrates why thinking of your allocation as different buckets of volatility and time horizon are important for your inevitable withdrawal strategy in retirement.

Diversify and Rebalance

Diversification goes a step beyond simple asset allocation by adding in very uncorrelated assets such as metals and real estate. By including these in your portfolio some of your assets will move in different directions to allow you to make the most of rebalancing.

On this week's episode of Tape Talk, Quint and Daniel review the recent rally in the stock market after March's severe decline.

Headlines

This week we continued to receive record headline numbers in the weekly jobless claims report and the US now stands at a higher continuing unemployment rate than it saw doing the most recent recession during the Financial Crisis. However, the stock market as a whole continued its rally in the face of this news. While much of the headline number may be baked into the market the real question is how this number will recover after quarantines resolve and how quickly the economy might ramp back up.

Investing Stage Strategies

Since it can be difficult to avoid the headlines and noise during market volatility it becomes important to know what this volatility means for the various stages of your investing journey. Quint and Daniel break down how certain demographics should actually welcome this volatility while others may need to have a plan to help mitigate it.

What To Look For Now

With the market off lows, investors now have a chance to review their allocation, the temperament, and how markets digest news going forward. Quint and Daniel review what they're watching now to indicate this bear market may subside or further declines may be in store.

On this week's episode of Tape Talk, Quint and Daniel discuss what they're watching in the market this week and what investors need to consider moving forward.

Unemployment Claims

This week's unemployment claims shot to new record highs far surpassing last week's record number. Yet, the market was mostly higher on Thursday following the news. Many investors might consider it a disconnect but it might just be a good sign that the market has priced in much of the bad news in the job market.

Oil Rally

Oil rallied nicely this week on speculation that Russia and Saudia Arabia may find a truce in the oil war. However, this news has yet to be confirmed. If we can see confirmation from both countries soon, oil may just be able to put in a bottom.

Allocation is King

Your investment allocation is one of the key ways you can manage or mitigate some of the risks in your portfolio. If you've found these recent moves difficult to sleep through and are unsure how your allocation lines up with your financial goals, it may be time to revisit your financial plan and investment management.

On this week's episode of Tape Talk, Quint and Daniel discuss how they're analyzing the current market moves and what they're keeping an eye on to indicate where we go from here.

Where We Go?

No one really knows for certain where markets will move from here. While many may attempt to call the bottom or top of the recent volatile moves, the situation in health, credit, and oil markets are all rapidly evolving which makes any prediction more of a guess.

From Oil to Credit

Before markets started to move on the COVID-19 pandemic there was an emerging crisis in oil prices. While consumers may cheer lower gas prices, even with nowhere to travel right now, the ripple effects in the economy are being felt. As oil prices slip below profitability levels for domestic drillers their entire supply chain comes under pressure and eventually the financial institutions that finance all those companies do as well. 

Signs of Life

So where are we looking for signs of life now? Daniel is watching credit markets for an indication that the Federal Reserves' historic interventions are going to provide the needed liquidity which may then calm other markets. Quint is watching oil prices to see some stabilization which will then give other areas of the market the peace of mind that the ripple effects may cease.

On this week's episode of Tape Talk, Quint and Daniel discuss how they're assessing the recent volatility in investing markets.

Under the Surface

While the coronavirus pandemic is making most of the headlines these days there are underlying issues in financial markets that are exacerbating the volatility investors are experiencing. Since last fall the Federal Reserve has been intervening in lending markets to provide liquidity which has only been accelerated as economic conditions have worsened recently.

Risk-Off

Investors must consider that there are really three key issues in the financial market today; an oil price crisis, a fragile credit market, and the headline-grabbing coronavirus pandemic. As these three events converged recently Joule Financial implemented a plan to reduce both equity and fixed income exposure which Quint and Daniel discuss.

Finding Opportunity

While reducing risk is an important aspect of financial management it's done for an eye towards the next opportunity. Quint and Daniel discuss what they're watching for clues to add back to investments at some point and where they might look for opportunity in the midst of all the panic.

On this week's episode of Tape Talk, Quint and Daniel discuss what it looks like to navigate the recent bear market moves.

Circuit Breakers

Circuit breakers were in the news repeatedly last week as US stock indices ran into these control levels twice throughout the week. Quint and Daniel break down how the circuit breakers function and why they might be important to ensure healthy market functions.

Power of Planning

No one who is invested in stocks, or many other investable assets, has been able to completely avoid the recent and swift decline in asset prices. However, having a plan ahead of time can make a significant difference in investors' success in navigating these turbulent times. Planning is critical to understanding your required asset allocation which is critical in ensuring you can handle the market volatility when it comes.

What To Do Now?

Quint and Daniel discuss some of the key life stages investors might find themselves in and what that means during market corrections like the one we're currently in.

On this week's episode of Tape Talk, Quint and Daniel review this week's selloff in equity markets and what that might mean for investors.

Week in Review

Over the course of the trading week, stocks cascaded lower about 15% on increasing fears of the spreading coronavirus outbreak. With headlines coming out each day about new cases in new countries it became increasingly difficult for large investors to price in the short and long term affects of this outbreak.

How a Virus Affects Stocks

While the coronavirus is certainly a serious disease that is quickly coming into focus of many around the world it may not simply be the virus that stocks are reacting to. In fact, Quint and Daniel discuss how much of this week's move is the result of the impact of attempts to control and contain the virus on the worldwide economy. With entire cities in China shutdown and the global supply chain disrupted it has become difficult to assess how any individual company is going to be impacted.

What Next?

No one is certain at what prices the current stock selloff will find stability but there are a few logical next possibilities on the horizon. Quint and Daniel discuss how supply chain changes and Fed rate cuts may come into focus in the coming weeks.