Where Is The Average Investor Supposed To Hide In This Market?

Benzinga

Scott Shellady AKA the "Cow Guy" and Markets Anchor at RFD TV talks about what he would do with his money in this current market.   #1 Morning Stock Show To Get You Ready For The Stock Market Open, PreMarket Gainers, Earnings This Week, Economic Data & More!  Benzinga PreMarket Prep 8:00AM ET- 9:00AM ET BenzingaTV on YouTube.

Transcript

00:00 - So what to do?

00:01 What to do?

00:02 Where do you go?

00:02 Do you hide out in T-bills?

00:04 Are you finally getting a turn in the bond market?

00:09 Maybe the bonds will stop going down.

00:11 Where's the average investor supposed to hide?

00:14 - Well, I tell you what, for the first time in a long time,

00:16 and look, I take care of my family's money.

00:20 I mean, that five, five and a quarter on one year,

00:23 plus a tax break, it's hard to say no to that.

00:25 If you look at over time, five, six, seven, 8%

00:30 is what you've been getting from the stock market.

00:31 Now, in the last few years, it's been crazy.

00:34 People have gotten way too accustomed

00:35 to 20, 25% moves in the stock market.

00:38 But I think that for the time being,

00:40 if you wanna sit there and wait and see what happens,

00:42 because every single sign is danger Will Robinson,

00:45 at least flashing yellow, some are flashing red.

00:48 I don't think it's time to shoot

00:50 for the corner office right now.

00:51 I think it's time to just be in there,

00:53 picking up nickels in front of the steamroller.

00:55 - Scott, that's such a great point that you just made,

00:59 is that people have become accustomed

01:01 to getting 20% of their money by being in the stock market.

01:05 When the long-term returns, and newer listeners,

01:07 please listen to this,

01:08 the longer term returns are exactly what Scott said.

01:10 It's 70%.

01:12 That's what the S&P averages over time.

01:15 So it's not 20%.

01:16 And we've had these luxurious years,

01:19 where everything has just been going up.

01:21 So maybe we get into a period

01:23 where this irrational exuberance of the stock market

01:25 just cools off for a little bit.

01:27 And maybe we don't get these 20% returns.

01:29 Maybe we get a couple minus 20s in here,

01:31 and you're like, "Oh, that hurt, that stung."

01:34 What would change your mind?

01:35 What would put Scott Shalady and say,

01:37 "Okay, that's it, I'm buying stocks."

01:39 What would happen?

01:41 - I would have to see common sense come back

01:44 into our daily activities and a daily lexicon.

01:48 Right now, I keep going to bed every night

01:50 thinking I can't get any dumber.

01:51 And every morning I get up and things got dumber.

01:53 (Rick laughs)

01:56 I need to see my life get back to common sense.

02:01 I need to see the people that are running my life,

02:04 our lawmakers, our politicians,

02:06 not look right into the camera

02:09 and tell me that the border is closed,

02:12 when you know it's not closed.

02:14 I don't know what to say.

02:17 That's so unnerving to me,

02:18 that the people that are supposed to be in charge

02:20 of everything can look into the camera

02:22 and say what they say.

02:23 That makes me love that five and a quarter percent rate too.

02:26 I would need to see some sense of normalcy

02:29 come back into our lawmakers

02:32 and how our lives are divvied up on a day-to-day basis.

02:35 Then I would start to think,

02:37 now maybe you have to do that a little earlier

02:39 than the rest of the crowd.

02:41 But boy, oh boy, right now, I have never,

02:43 I'm 57 years old, I'm about to be 58.

02:46 I've been in this business for 36 years.

02:48 I have never in my life seen a situation

02:52 where I'm having to make investing decisions

02:55 with total disregard for common sense.

Transcript

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