Latest / Financial Survival Network / Market Shake-Up: From Soft Landing to Hard Truths! - Mindy McIntosh #6076

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Market Shake-Up: From Soft Landing to Hard Truths! - Mindy McIntosh #6076 · Financial Survival Network

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  Well, I think when we're in periods of time where inflation is high,
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  bond markets are not at place for performance either. And then we take a
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  look at housing. Right, So for anyone who's looking to either downsize,
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  move, look for employment in a different areta, it's definitely not the time
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  that they want to go out and get any mortgage where they're looking at rates
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  a loan. You're listening to Carrie Lutz's Financial Survival Network, where you get
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  valuable information you just can't find anywhere else to thrive in today's trying times.
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  You need the Financial Survival Network now more than ever. Go to Financial Survivalnetwork
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  dot com and get your free newsletter and gift. Financial Survival Network now more
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  than ever. And welcome you are listening to and watching the Financial Survival Network.
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  I'm your host, Carrie Lutz. A. It's Friday, just before
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  Memorial Day weekend. The official art of summer, although the official start of
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  summer in Florida is doesn't have an official start, and it's always summer year.
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  It's just hot and hotter. So our good friend Mindy Macintosh is with
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  us and now and many welcome back. So the first thing that popped out
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  well, I guess we should talk about consumer sentiment. But before we do
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  that, the vix All right, when you see the vics enter a period
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  of complacency or maybe indifference, like nobody's training it, it's just staying at
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  a low level. You know, nothing's happening. Doesn't that give you a
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  pause for thought? Absolutely a pause. It's like, here's the calm before
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  the storm, and you know something's going to happen. But here's where we
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  just kind of see a slower calming period of time, which really, you
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  know all honestly, Caroly, is the time that I tell folks that we
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  need to start establishing a plan. So you know, here we really make
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  sure that folks have that. It's kind of the first step. Make sure
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  you have a world diversified plan. So what are you doing today inside of
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  your investment portfolio? And how are we looking at things such as volatility and
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  risk and video and all of these different piecees to the puzzle to make sure
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  that you don't have too much in anyone give an allocation and making sure that
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  we're here to walk you do that, because it didn't definitely in that period
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  of time where it's like, oh my goodness, we're at around twelve,
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  and we know what that hanging into when history repeats itself or just kind of
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  something is brewing and coming up. All right, So now combine that with
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  the consumer sentiment report in May, which fill further the Michigan the University of
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  Michigan's Consumers Sentiment Index, you know, falling eight point one points a month
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  over months. You know, maybe the consumers know something we don't. Well,
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  I think when we're in periods of time where inflation is high, bond
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  markets are not at place for performance either. And then we take a look
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  at housing. Right so anyone who's looking to either downsize, move, look
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  for employment in a different areatia, it's definitely not the time that they want
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  to go out and get any mortgage when they're looking at rates alone, and
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  then how do they head those when you're looking at you know, what does
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  wealth instruments look like for them? And they might be looking at you know,
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  short term CDs. Right now, we're definitely out performing long term,
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  and we take a look over all in the market. I mean, gosh,
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  how long are they going to continue to say you can earn five plus
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  in a six month CD? And yet how do we look at the next
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  ten, fifteen, twenty thirty years down the road, so we have to
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  be super careful of what staple items, where folks are still spending their money,
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  how we want to actually influence this and really what the feds are going
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  to do and when we see the rates are going to be cut. So
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  we got to make sure that we're well, we're well looking ahead. We're
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  making sure that we're not spending too much money in anyone give an area out
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  we hear even have a process and we look at that with folks to say
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  where shouldn't we be weaning a little thin and what should we be diving into
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  even from our investments standpoint, you have a few extra bucks, where should
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  we be and not too heavily weighted in one sector? Yeah? Yeah,
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  you know it's interesting is that indicators pretty pretty consistent, isn't it, Mary.
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  Yeah, And the indicators just show that we don't want people to run
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  fearful, but we know that something is coming, so they have to make
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  sure that they have their investment and even their healthcare philosophy set in place,
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  Especially for we work with a lot of people that are internearing retirement. Kind
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  of our specialty here and really helping people focus on retirement made clear. So
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  you think of that, if they're getting ready for a time to retire and
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  we see those vis at twelve, you know, we don't want them running
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  scared, but we need to have the appropriate plan for how are they going
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  to instill income to NATO living in retirement and what things should we be doing
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  looking out of the short term versus the long term, and then how do
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  we set that around their goals of what they might want to do throughout their
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  retirement years. It really is a time, a pivotal time point that we
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  have to look at all those indicators. Yeah, yeah, I couldn't agree
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  with some more. And you know, nobody's talking about a soft landing anymore.
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  You know, you don't hear much. Nobody's saying inflation's transitory. Now
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  we find out it's not transitory. It's sticky, right, and maybe it's
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  semi permanent at this point. So you know, it looks like the meme
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  makers out there at the Fed and the Treasury, they're kind of losing their
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  grip on things absolutely, and you know those are those are things too that
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  we need to look at when we take a look at even just a rise
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  inflation, you're talking about interest rates, the Feds hunting and cut rates.
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  You take a look at even our national debt and what we're looking at there,
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  and I think some folks don't even realize how cheerful we need to be
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  about legislative risk and taxation later in life, even when we take a look
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  at portfolio. So we're always taking a look at folks and look at even
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  the tame little standpoint as a nation, how are we going to cut rates?
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  Where are we going to have our taxpayer dollars spent? And make sure
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  you're preparing for that as you're getting ready for retirement. Tax free is the
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  envelope to go in. And there's just different ways we could help you to
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  make sure the consumers are holding on to as much of their dollar as they
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  can. So what's your take on with what's happening in the banking sector now?
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  While we're seeing a lot of mergers acquisitions, banking is really taking overall,
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  especially here in Michigan with you know how much we're seeing transitory there and
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  transitioning, and I think that we have to really take a look that.
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  Obviously we're seeing CD rates, banking rates, what it's happening. What are
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  new folks moving into the area. So I think some folks who just have
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  some cash on hand, why not get into a six month CD. But
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  on the flip side, we should be using treasuries, and they don't have
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  the state tax here in Michigan to be able to be doing that. So
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  there's little nuggets that, you know, we can be making sure that we're
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  using treasuries instead of CDs. And as we take a looking at the bank,
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  some people aren't real comfortable and feeling that their money is going to be
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  super safe sitting there. And when we talk about the stick ratio, people
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  want funds in cash, how can they reliably utilize them? So I feel
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  like the banking into industry has definitely transitioned from where it used to be to
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  where it is today, you know. So I definitely agree that it's something
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  that consumers have really been taking a look at. Yeah, for sure,
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  for sure. So you know, I guess it all depends where you are
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  in your point in life, whether you're getting ready to retire, whether you've
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  got thirty forty more years before you have to retire, all that stuff.
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  So there's no like cookie cutter answer here, but certainly caution is the byword,
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  definitely caution. We need to be careful that people have a well thought
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  out plan, seek out help with that and what they should do next,
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  so that ways we know life changes, we know there's change coming, but
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  we want to make sure you're not here with that surprise because you're dealing bike
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  jery. I don't think we're going to see us soft landing here. So
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  you're being prepared and make sure that we're working together to walk through this and
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  navigate on how you should be set up so we don't have that nakage surprise
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  because some people like surprises on birthdays. Outside of that, we want to
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  make sure we have a well thought out plan. The one thing that gives
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  me a little solace is you know the old saying that economists have predicted five
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  out of the last two recessions, right, sure, yeah, So when
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  we take a look at that, it does help. I mean, I
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  think that as long as we can look ahead and look at these indicators,
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  right, we need to look at unemployment rates and what's happening in consumer staples.
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  So these are all indicators that do help us to look ahead to make
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  sure that we are well prepared to know what has happened in the past,
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  where we at currently, what do we see coming because we're definitely in a
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  different train point in a different world that we than what we ever have in
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  my opinion, as we look at rates and interest rates and really this inflationary
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  period of time. Yeah, so what's your take on cutting rates? Are
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  we going to see it? Are they going to hold off to the last
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  possible moment? What are they going to do? I feel like they have
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  to hold the last possible a little bit. I'm not sure what we're going
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  to exactly see with race, but I don't feel that we're going to see,
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  you know all, we're going to actually seeknvence cut rates, housing numbers
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  go back to where they should, interest rates, make some changes and transitions.
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  I think we're going to wait till last possible they need to do.
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  So. Now, I think that what folks are expecting to see for the
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  level playing field leveling back out, we might, you know, be a
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  period of time where Dan Barga said a little bit different and this might be
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  somewhat more of the new norm, at least from what I've been seeing.
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  Yeah, yeah, you know, that's that's a little scary. Well,
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  one thing that the unemployment numbers have held up pretty well. There have been
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  some states down in others, you know generally, and it's all in the
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  revisions, right, isn't there Right, Yes, it's in the revisions.
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  And how they're gonna uncover that and watch that. I mean, we definitely
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  need to see there's periods of time where you see, okay, we need
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  more folks purchasing homes and selling and moving into new heritors. But when we
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  take a look at unemployment, those numbers look good. People are still going
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  out, the consumer staples are time, We're still seeing people traveling. So
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  that's why I think sometimes we're going to see a hold on this now eventually
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  is going to need to happen and make some changes, see some you know,
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  we really need to see a period of time where information and interest rates
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  in bond prices are all kind of on mis teeter totter. Well, we'll
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  see that leverage out at some point. I just I think they're going to
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  hold off of it. Yeah. Yeah, And you know, one thing
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  I learned over the years is that you know, what's happening in the economy
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  is always important, but sometimes the flow of funds coming in from the rest
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  of the world is really more important. And we see like the flow of
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  funds going into China's stopped gone, Like nobody's putting money in there. They're
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  getting the heck out. So a lot of flight capital from China as well
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  as other parts of the world are coming here, right, Yeah, I
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  mean, so that's nice, and we can keep it in the States.
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  We've definitely seen that the trade. We're continuing to see that more and more
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  inside the US, which is helpful. It does help our economy, which
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  means that why would they need to change some of the inditional items. They've
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  already done that. They pivotally changed some exterior your barriers, wire done meat,
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  I think is going to just continue to try to help the consumer shape
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  it here and then how do we actually look at that for revenues down the
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  road, and how FEDS are going to handle this and just globally, where
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  are we seeing that? So I just still say be plaustrous and look ahead,
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  make sure you're looking inside these accounts and really watching what's up and coming.
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  Okay, So the other question is I don't know your family situation,
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  but let's say you're talking to your mother who's eighty, what are you telling
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  you? Or seventy five to eighty, what are you telling her to do?
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  Well? We definitely want to make sure that we're transit into being well
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  diversified, so our folks already are, meaning that we don't want to just
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  say, oh, everybody go to Nvidia because that's important and everyone to be
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  an AI in tech stoc So that is definitely a position to have portion of
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  your portfolio, but as an age, we need to be more and more
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  well grounded. I also say we don't want to be directly in the bond
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  index right now, not a spot to be so wrong time period of COVID.
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  We have bond alterna venoms into portfolios to help perform where the bond IndX
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  is and where it should be. So what I tell my grandmother is not
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  a buy and hold strategy, It is making sure we have a solid income
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  plan. So, especially for their age, looking out for things like long
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  term care and having a solid income plan, which means navigating their investment portion
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  of portfolio and optimizing that is key. So we definitely don't want to ignore
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  it. We don't want to run scared though either and just make sure you're
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  talking to your family members and your advisor to make sure me you're setup for
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  success. All right, I think we got a good insight into things.
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  I think we'll let it go of that, Mindy, just tell us where
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  do we find you on the way up? How do we connect with you?
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  So in order to connect with us, please go to Wealthmichigan dot com.
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  Some of you might be interested in our toolkit and our new book titled
• 13:09
  Cultivate Wealth. It can talk to you about some of these things that we
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  are seeing currently in the market, and so we'd be happy to help you
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  there. So Wealthmichigan dot com or Macintosh you she'll see it all right,
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  excellent, And of course the link is in the show notes to this interview
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  on Financial Survival Network dot com. When you go there, please sign up
• 13:26
  for your free newsletter Mandy. It's always a pleasure. And hey, we'll
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  try to put the link in to get your toolkit as well, and we'll
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  talk to you again soon. Thanks, Kerry, appreciate it. Thanks for
• 13:37
  listening to carry lets this Financial Survival Network your solution to today's trying times.
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  For the latest, go to Financial Survivalnetwork dot com. Financial Survival Network now
• 13:50
  more than ever