The two handed economist has a surprise prediction! Today we cover a wide range of topics such as market movements and our perceptions of the current economic and political climate. We talk our current leadership, particularly criticizing Gavin Newsom's handling of California's challenges, including wildfires and insurance issues. We also talk economic frameworks, including the effects of inflation and deflation on purchasing power. Today we discuss...
- The growing popularity of pickleball and its origins, along with its appeal to older demographics.
- Effective leadership styles by referencing Steve Jobs and Joe Rogan as examples of accountability.
- The systemic issues with inflation, focusing on how purchasing power declines over time due to currency devaluation.
- Bitcoin, gold, and real estate to illustrate inflationary trends and their impact on perceived asset values.
- Encouraging viewers to adopt a long-term perspective on financial decisions, taking into account the erosion of currency value.
- The Federal Reserve's policies aim to reduce volatility, making economic decision-making easier, albeit at the cost of consistent inflation eroding purchasing power.
- Cash outperforms in market crashes as its purchasing power increases, enabling investors to acquire discounted assets.
- The current market, based on metrics like the Schiller CAPE ratio, remains historically overvalued, raising caution for future corrections.
- Even if the market drops by half, it would still be expensive, suggesting a significant correction is required for reasonable valuations.
- A large flow of money into indexes has contributed to elevated valuations, pushing prices higher even beyond practical expectations.
- Since a significant amount of money continues to flow into the market each year, it's difficult to predict when a true market collapse might happen.
- The current market behavior shows that it could rise even further than expected, despite economic uncertainty.
- Even in extreme scenarios like COVID, when the global economy shut down, the market showed resilience, defying expectations of a larger crash.
"Cash is not trash... Cash is King" - Kirk Chisholm
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Today's Guest: 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:
Today's Panelists
- Kirk Chisholm | Innovative Wealth
- Douglas Heagren | Pro College Planners