Yesterday, I was interviewed by WLUK Fox 11’s Nick Harrington for my first local news appearance.
I’d be lying if I said I wasn’t a little nervous. After all, I’m not sure how I’ll come off on camera, I don’t know the exact questions they’ll ask, and I get nervous that they may use snippets out of context in a way that wasn’t intended.
However, Fox 11 used great, relevant snippets and in the proper context so I’m very happy with it. It’s good to have the first one under the belt so I know what to expect next time.
They use a few clips from my interview throughout the segment. Click the image below for a link to the interview, and I’ll expand on a few topics addressed below.
In the first snippet I’m referencing the “rot” that’s been occurring under the surface for a few months, which I’ve addressed in the past here as well.
Specifically, many of the trendiest assets of the last few years have been in a downtrend for a while and are down anywhere 50% to 90% from their highs. These are the low/no/negative earnings stocks and cryptocurrencies. We just haven’t seen this hit the headline indices (e.g. S&P 500, Dow Jones Industrial Average) until this last month.
Additionally, foreign stock markets have been in a downtrend since last June and have been trading below their 200-day moving average since November.
In the second snippet I was asked about what has caused the recent surge in volatility so I discuss a confluence of factors: persistent inflation, tightening monetary policy, slowing growth, and the end of stimulus programs.
And, of course, not included in the clip, is the most important component of all that I frequently discuss here, which is the extreme overvaluation of the U.S. stock market.
In the final snippet I’m referencing the unique risk for folks nearing retirement or recently retired. For those folks in particular having excessive stock exposure in the portfolio can be particularly problematic due to a concept I’ve written about before called “Sequence of Returns Risk.” This is why risk management around those retirement dates is generally more critical than at any other time in a person’s life.