12-10-24 Portfolio Re-balancing & High Valuation Risks
The Real Investment Show Podcast
Post-election consumer confidence is rocketing higher. Inflation Data is coming: CPI & PPI which will be digested in time for next week's Fed meeting. Inflation numbers are likely to tick up from YOY comparisons. Portfolio re-balancing commences. What does financial success look like? Lance and Jonathan review the answers by-generations. Stocks vs Bonds: Earnings growth expectations are too high; what happens if we don't meet them? It was easy managing money this year... A review of Bob Farrell's Ten Investment Rules, with a focus on #9: When all experts agree... Tax-loss Harvesting &...
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12-10-24 Will the Markets Re-balance?
The Real Investment Show Podcast
happen to the top 10-20% of the Russell 2000: All those high-momentum stocks that were up 50- to 90% this year were sold off because they were over weighted in portfolios, and this created a very big draw-down in momentum on Monday. Markets are flattish in the pre-open, and may achieve some recovery today, but markets are still fairly deviated from their moving averages. We are likely to trigger a sell signal today, which would additionally push markets lower heading into Christmas. Hosted by RIA Chief Investment Strategist, Lance Roberts, CIO Produced by Brent Clanton, Executive...
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12-9-24 Why Earnings Can't Outgrow the Economy
The Real Investment Show Podcast
Lance's Husbands' Christmas shopping warning service; markets are now in second week of sloppy trading. Portfolios out-of-balance will trigger volatility as managers adjust weighting. There is a possible correction coming, BUT markets could continue to rally all the way into the New Year. Tesla is up 54% since the election; a plethora of ETF's: all money flows feed into underlying stocks; $1-T into ETF's this year. Where will the next Trillion come from? What's the Risk for market correction? Volatility Index is down to 13; no one is betting on a crash. Where are the money in-flows...
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12-9-24 Setting Up to Rally
The Real Investment Show Podcast
Markets performed well last week, continuing to rise to new highs on Friday. There is now a huge deviation from moving averages, so there's a real risk for correction...but no guarantee: Markets COULD continue to rally into the New Year. The Volatility Index is also suggesting the same potentiality. An uptick in volatility...and a market correction...would be absolutely normal. Any pull back will set us up for a year-end rally. Hosted by RIA Chief Investment Strategist, Lance Roberts, CIO Produced by Brent Clanton, Executive Producer ------- Watch the video version of this podcast:...
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12-5-24 Is Another Liquidity Crisis Near?
The Real Investment Show Podcast
Portfolio Manager Michael Lebowitz makes a rare, in-studio appearance with Lance Roberts, discussing whether another market liquidity event might be on the horizon? While there is generally good liquidity in the financial system, there are some nascent signs that problems could arise. The ISM Services Index is showing weaknesses, and more economic reports to come this month are likely to mirrow such performance. A lack of stimulus money showing up previously in the economy are resulting in these weaker results emerging. Meanwhile, markets continue to do well, and expectations for 2025 are 19%...
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12-5-24 Bitcoin Hits $100,000
The Real Investment Show Podcast
The Big news overnight is that Bitcoin hit $100,000 with President-election Trump's appointment of pro-cryptonian, Paul Atkins, to return as SEC Chief. Consider, Bitcoin was at $60k back in October; this recent climb culminates a long period of consolidation. Caution should be the watchword, however, as Bitcoin is highly deviated from its long-term moving averages. Eventually, it will get a pullback. Technology also had a big breakout Wednesday, after a long period of consolidation following the Yen Carry Trade blowup. Markets are very optimistic, very bullish, which is moving asset prices...
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12-4-24 Time for a Portfolio Reality Check
The Real Investment Show Podcast
Russia just learned of a near-miss from a passing meteorite...TONIGHT! Lance discusses GDP estimates and other economic reports; Retail Sales are "okay," with no tell tale signs of Recession...for the moment. What will revisions to these reports show next year? What will be the impact of cutting government spending? Meanwhile, investors are very, very exuberant. What should investors expect for the rest of the year? Lance and Danny discuss old guy things: Backpain. There's a pullback coming: Time for a portfolio reality check? The challenge of portfolio rebalancing when exuberance is high;...
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12-4-24 What to Expect for the Rest of the Year
The Real Investment Show Podcast
What should you anticipate for your market playbook as 2024 comes to an end? The S&P has continued its steady trend along the 20-DMA, with a few tests of the 50- and 100-DMA's along the way. While we have had very low volatility this year, we're expecting a bit of a correction between the 8th and the 15th of the month. Likely nothing dramatic, just back to the 20-DMA. After that, portfolio managers will begin the process known as "window dressing:" putting the best possible performers on their books for positive year-end results. That will likely trigger a "Santa Claus Rally" into the...
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12-3-24 What Excessive Leverage Teaches Us
The Real Investment Show Podcast
Periods of extreme leverage and speculation are not new, and the outcomes have consistently been painful for unprepared investors. The late 1990s dot-com bubble serves as a prime example. Speculative bets on internet stocks drove valuations to extraordinary levels, with investors leveraging margin accounts and options to chase gains. When the bubble burst, the Nasdaq lost nearly 80% of its value, leaving leveraged traders especially vulnerable to devastating losses. Lance and Jonathan discuss these lessons from history on today's show, plus a discussion on asset diversification, and what...
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12-3-24 Diversification Isn't What You Think
The Real Investment Show Podcast
The S&P is back on a buy signal and is a bit overbought; about to be impacted by portfolio redistributions. Small- and Mid-caps have enjoyed a sharp rally but are now only back to where they were three years ago. (While the S&P has made 54 new highs this year, up almost 27% for the year and continuing to grow, Russell 2000 holders have gone virtually nowhere for the past three years.) Those who have been long-term holders in "allocated" portfolios would be wise to review the idea of "diversification:" Diversifying among asset managers is NOT diversification. Just holding a bucket of...
info_outlineIt's 2024 Election-eve: Hedge funds are long on a presumed outcome; watch for a pick up in volatility. The Fed meets on the day after the election; there are still about 100 S&P Companies left to report. Reference Lance's weekend article on buy backs, Wolf in Sheep's Clothing: Apple spent $100-B on stock buy backs, when they could have purchased Intel for $99-B and produced their own chips. But, no. investors should do nothing on this day before the election; any move you make could be wrong. RIP Quincy Jones & Peanuts the Squirrel; Earnings Season Beat Rates are still elevated 80% (w charts). Roughly 10% of earnings are manufactured, and these are boosted by buy backs. Jerome Powell commentary this week will depend upon election outcome; he doesn't know yet. Lance' discussion on interest rates and debt overhang: Remember the Fed's job is to protect the banks. Lending money into existence is how economy works. Interest Rates are like a virus. Expectations are for a .25-bp rate cut. The IRS is raising the 401k max contribution ceiling by $500 to $23,500 for 2025. How "later" shows up tomorrow. Saving is a discipline.
SEG-1: Markets on Standstill
SEG-2: Earnings Season Beat Rates Still Elevated
SEG-3: Interest Rates Are Like a Virus
SEG-4: 401k Ceilings & the Discipline of Saving Money
Hosted by RIA Advisors Chief Investment Strategist Lance Roberts, CIO
Produced by Brent Clanton, Executive Producer
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Watch today's show video here:
https://www.youtube.com/watch?v=isHueBB3EwY&list=PLVT8LcWPeAugpcGzM8hHyEP11lE87RYPe&index=1&t=2s
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Articles mentioned in this report:
"10 Smart Money Moves to Make Right Now"
https://realinvestmentadvice.com/10-smart-money-moves-to-make-right-now/
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The latest installment of our new feature, Before the Bell, "Don't Do Anything Today" is here:
https://www.youtube.com/watch?v=ureIqdQOgyo&list=PLwNgo56zE4RAbkqxgdj-8GOvjZTp9_Zlz&index=1
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Our previous show is here: "Ten Money Smart Things To Do Before Year's End"
https://www.youtube.com/watch?v=-GA2ZIzl8ws&list=PLVT8LcWPeAugpcGzM8hHyEP11lE87RYPe&index=1&t=1900s
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