We've been seeing the stock market stuck in neutral so right now we're focusing on rising inflation, interest rates, government debt, and growing risks across the economy and financial markets. Today we talk the Fed’s unanimous 25-basis-point rate hike alongside our concerns about the persistent inflation we've been seeing. We also discuss why bonds are becoming more attractive for income, and the difference between high inflation and hyperinflation. We also explore the media sensationalism and how it can distort perceptions of risk and seasonal market patterns around the coming midterm elections. Today we discuss...
- How inflation, economic growth, and currency devaluation could be used to reduce the burden of the massive national debt.
- The potential impact of higher inflation on asset owners, real estate, debt, and investment returns was explored.
- The difference between high inflation and hyperinflation was explained, along with why hyperinflation is viewed as unlikely in the U.S.
- Why bonds have become more attractive for retirement income as yields have risen.
- Media sensationalism and the way news coverage can distort perceptions of risks such as terrorism, crime, COVID, and other causes of death were examined.
- Growing market concentration and unusually high household exposure to equities were highlighted as potential sources of market fragility.
- Weakening real consumer purchasing power as inflation continues to outpace wage growth.
- Rising national debt and the rapid pace of additional borrowing were examined as growing long-term economic concerns.
- Historical market seasonality around midterm elections and the tendency for markets to strengthen later in the year.
- The Nasdaq’s sideways performance, the Russell 2000’s recent weakness, and potential opportunities in small-cap stocks.
- Gold and silver as markets that may require patience following periods of strong performance and consolidation.
- Bitcoin and the hosts’ differing levels of confidence in various cryptocurrencies, including XRP.
- Rising 30-year mortgage rates and their potential impact on housing affordability and home prices.
- The housing market is increasingly strained by high mortgage rates, elevated home prices, declining buyers, and rising listings.
- Investors should remain cautious and pay attention to market signals rather than assuming current calm conditions will continue.
"Cash is not trash... Cash is King" - Kirk Chisholm
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Co-Host: Kirk Chisholm
Kirk Chisholm is a Wealth Manager and Principal at Innovative Advisory Group, an independent Registered Investment Advisor located in Lexington, MA. He has been providing wealth management services to individuals, executives, entrepreneurs, and their families since 1999. He is an outside the box thinker, risk manager, inflation expert, blogger, podcaster, and all-around interesting guy. Kirk is dedicated to developing lasting relationships with all of his clients and their families. One of the benefits of working with Kirk is his patience, empathy, and his ability to provide clear and easy-to-understand explanations to complex financial topics.
Kirk developed a unique philosophy for the wealth management industry called Risk Management First. The medical field has a similar way of thinking of "first do no harm". This philosophy focuses on risk management for clients in all aspects of their lives in ways the industry does not address. Risk management does not stop with investments. It also requires working closely with other professionals to address areas of their financial lives not currently being met.
In 2008, Kirk co-founded Innovative Advisory Group to address the needs not being addressed by the wealth management industry. It started with specializing in alternative assets held in retirement accounts (i.e. self directed IRAs/401ks). Then the company expanded into the specialization of college funding (i.e. planning, strategy, and paying the least possible for a high quality education), Risk Management First, exit planning for business owners, advanced planning (estate, tax, etc), and providing practice management and leadership training to other financial advisors, accountants and attorneys.
Kirk's Online Presence:
Co-Host: Doug Heagren
Meet Douglas Heagren, a devoted husband and father of two, whose personal journey has fueled his passion for helping families navigate the complexities of college planning. Growing up, Douglas faced adversity early on when his father passed away, leaving him to care for his younger sister through college. Witnessing firsthand the financial struggles and challenges of college planning, Douglas became acutely aware of the importance of effective preparation and support.
Motivated by his own experiences, Douglas embarked on a mission to make the college planning process more manageable for families. With over 15 years of experience in the industry, Douglas has honed his expertise and developed a deep understanding of the challenges families face when sending their children to college.
Driven by a desire to make a meaningful difference, Douglas made the decision to focus his practice solely on addressing the unique needs and concerns of families navigating the college journey. Through his dedication, empathy, and unwavering commitment, Douglas strives to empower families to overcome obstacles, secure financial aid, and pave the way for their children's success in higher education.
Doug's Online Presence: