Spring Stock Market Update – Driving a Slow Speed
Summary of Webinar from March 16th, 2016
This client webinar, offered an update on our current thinking and explanation of recent portfolio actions. Specifically, we reviewed reasons for our current conservative portfolio profile, and discussed what would turn us more positive in our stock market outlook.
Tom began by highlighting the similarities of the past 16 years’ trading range to the late 1960s to early 1980s trading range, where the markets travelled far and wide but made no real progress. Then he reviewed a chart that demonstrated how Pring Turner’s active investing approach has provided steady growth compared to passive or index investing, especially when applied to retirees who are taking a monthly withdrawal to live on.
Jim followed by discussing a core thesis of Pring Turner, which is that we are always on the path for continuing improvement. One recent improvement was to enhance our barometer results with a more comprehensive model based on our multi-decade experience with financial modeling. So, Jim introduced our Stock Speedometer, a primary trend indicator, and explained its powerful results.
Next, Joe introduced the concept of stress testing your portfolio for a bear market. Stress testing means you understand how well your portfolio will survive a typical bear market decline. He demonstrated the importance of having a prudent discipline, such as how the Stock Speedometer helps an investor sidestep much of a bear market decline and how an emphasis on high quality stocks will further protect investors. The end result is a much more favorable and tolerable path to compounding wealth.
Martin continued the webinar by reviewing two charts that displayed some of the rationale for our current defensiveness, and showed why we may be near the end of the current bear market. One chart demonstrated how value stocks were taking leadership over growth stocks after several years of under-performance. This is good news for Pring Turner clients as we emphasize value stocks in your portfolio.
Tom wrapped up the webinar and concluded that our portfolios are currently in a ‘protect’ mode, but we are prepared to put the offense back on the field as the evidence turns positive.
Last summer and again to start the New Year, it felt like markets drove off a cliff with deep and sharp market declines. Have we bottomed out? Are we there yet? This update explains why we continue to drive portfolios at a safer speed.
Your portfolio is in “protect” mode for now, but we are preparing to put the offense back on the field as the evidence turns more positive.
DISCLOSURES: Pring Turner Capital Group (“Advisor”) is an investment adviser registered with the U.S. Securities and Exchange Commission. The views expressed herein represent the opinions of Advisor, are provided for informational purposes only and are not intended as investment advice or to predict or depict the performance of any investment. These views are presented as of the date hereof and are subject to change based on subsequent developments. In addition, this document contains certain forward-looking statements which involve risks and uncertainties. Actual results and conditions may differ from the opinions expressed herein. All external data, including the information used to develop the opinions herein, was gathered from sources we consider reliable and believe to be accurate; however, no independent verification has been made and accuracy is not guaranteed. Neither Advisor, nor any person connected with it, accepts any liability arising from the use of this information. Recipients of the information contained herein should exercise due care and caution prior to making any decision or acting or omitting to act on the basis of the information contained herein. ©2016 Pring Turner Capital Group. All rights reserved.
Disclaimer: Pring Turner is a Financial Advisor headquartered in Walnut Creek CA, and is registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. The views represented herein are Pring Turner’s own and all information is obtained from sources believed to be accurate and reliable. This information should not be considered a solicitation or offer to provide any service in any jurisdiction where it would be unlawful to do so. All indices are unmanaged and are not available for direct investment. Past performance does not guarantee future results.
Articles filed under Market Commentary
May 22, 2020 - We continue to monitor the economic situation and where appropriate are making adjustments to your investments. This video update (click here to watch) is designed to keep you informed on the decision making process we are utilizing to navigate your... Continue Reading
April 10, 2019 - Wow! The first three months of market returns sure made a nice year for investors! As we pointed out in the January newsletter, “Our strong belief is that this temporary [Fall 2018] stock market setback sets up for a stronger... Continue Reading
February 8, 2019 - Joe Turner was the guest speaker at the San Francisco Technical Securities Analysts Association webinar on January 10, to present his 2019 financial market outlook. The TSAA – SF is the oldest society dedicated to helping investors become more knowledgeable... Continue Reading
January 10, 2019 - 2018 started off with a very strong January for stock investors and finished with December being one of the weakest months in many years! Indeed, this was a year of extremes despite a very favorable economic backdrop. If you knew... Continue Reading
January 10, 2019 - There is little doubt that the US economy is in a state of slowdown. That’s actually a good thing, because it offers some time to pause and refresh, thereby postponing either a recession, overheating or both. These pauses perform the... Continue Reading