Latest / The Jon Sanchez Show / Why are some Wall Street firms worried?
Transcript
- Jon G. Sanchez: ⁓ my goodness, what a day it has been, what a week it has been, and I'm so glad that I get to be with you on this Friday afternoon. You know, we're at interesting transition point, I guess is the best way to in the market. A very transition point. Today was another record-setting day for the NASDAQ, for the S &P 500. And you know, I was thinking morning, as it looked like it was gonna be another strong day today, I was thinking, ⁓ You know how many times have I sat behind this microphone over the years? When we find ourselves in a in a time period where we're in right now where we're setting record after record after record day after day after day. And we almost take it with a grain of salt. It's almost like we expect it. And I want to remind everybody that when we're in these type of situations. Where there's so much optimism. so much being, you know, shoveled into the stock market or being put to work. We must remind ourselves that it isn't this way forever. Now, trust me, I love this as much as you do, if not more. We manage a fairly significant sum of money and love seeing my clients' portfolios go up, plain and simple. I love knowing your portfolios are going up. But at the same time, I would not be doing you much of a service. ⁓ If I sat behind this microphone every time we're in one of these upward momentum time periods and went, hey guys, everything is great. every dollar that you have into the stock market. ⁓ not going to lose. Things are never going to go down. What kind of radio host would I be? What kind of anything would I be? Nothing. You'd all turn the station on me. You wouldn't have stuck with me for the last 25 plus years that I've been here. So that ties me into today's topic. Record setting day, as I said, we had an incredible April, as I mentioned yesterday on the show, right? Over 15 % gain on the NASDAQ side, just as an example. But thing that you're not gonna really hear from any other, definitely radio show, maybe even a national show, maybe on CNBC or Bloomberg if they get the right guest. is what I'm about to tell you. Wall Street is flashing some warning signals. And you may be thinking, wait a minute, what are you talking about? You just said two out of the three major indexes had records today again, incredible month of April. What do mean they're flashing warning signals? This is why you cannot miss a day of this show, because I'm sharing with you Wall Street insights for Main Street. Right, that's my specialty. Wall Street Insights for Main Street, meaning you, the hardworking man and woman out there, or the retiree that is out there. Because you're not gonna hear this on your local news or else. You gotta have somebody that sits behind this microphone and lives, eats, and breathes the market 14 hours a day, every single day. And this one specific firm, and I just picked them out I'm gonna share with you, the of, that is flashing the warning signals, is the one that I have the most respect for of any major Wall Street firms. We have a great relationship with them that has nothing to do with my comments about they're my firms, it's from a number of different standpoints. And that is Goldman Sachs. You see, there's a very fascinating article. that appeared in the Wall Street Journal today caught my attention. And this article talks about a number of internal indicators that Goldman Sachs is watching right now that are flashing not red, meaning, you know, head for the exits, but flashing yellow, some cautionary comments, some cautionary indicators. And I thought, you know what, this is a perfect time this Friday afternoon to sit back with you explain what one of the most powerful Wall Street firms is seen. You see, folks. I feel like I'm a fairly knowledgeable guy, right, been doing this a long time, been blessed to be in this industry. But I don't sit on a trading desk. Like a Goldman Sachs does, I ⁓ lend to ⁓ hedge and. play a market maker in words, be in the bowels of Wall Street like a Goldman Sachs does. So you get a firm of their prowess that comes and says, you know, again, yellow signs, you gotta sit up and get to pay attention to it. Because I'll tell you one thing that I have learned, just my opinion, one thing that I have learned over my career, actually two things that kind of tie together. Number one, as you've heard me say a million times, you never fight the Fed. Okay, that's number one. I was taught that very beginning of my career. Second thing is you listen to what these Wall Street firms are saying because they are the ones their clients, which then gives the Wall Street firms the information. They are the ones that move the market and have their own proprietary indicators. But more importantly, they see here on their trading desk what, again, other firms are doing, what hedge funds are doing, et cetera. And so when they come out, which is kind of a day late dollar short, in my opinion, publicly tell everyone through a great newspaper like the Wall Street Journal that they're seeing problems ahead. Well, again, kind of day late dollar short, because I promise you, they've already reacted. They've already prepared themselves, right? When they started to see this information unfold, they're like, you know, I mean, that's what Goldman Sachs does. That's why they're such an incredible trading firm. So I'm gonna get into this with you, this article, and I'm gonna digest it and comment on it as we go through it because it is chocked, absolutely chocked, full of phenomenal information that again, I thought would be very insightful for you to help you make your portfolio decisions. I think I'd mentioned earlier this week, I can't remember what day, that I get more nervous when we are setting record after record. I love a record every once in a while, but I'll be honest, don't like seeing records day after day after day. That tells me there's too much optimism in this market. And also as I've shared with you many times over the 25 years sitting behind this microphone with you. Wall Street loves, loves, loves when you, the retail investor, are so optimistic and you're dumping every dollar that you have into the stock market. That has historically always been the signs of a market top. And that's what we're starting to see. So I will go into this article. I will stop. I will comment. I will give you advice on it. But I thought, like I said, it's kind of a 180. compared to what we're living and breathing right now in this stock market with these records being set day after day. But again, I want to reiterate, I get very nervous when we're in this type of an environment. I get very nervous because Wall Street can pull the plug, meaning the institutions, upon the indicators, et cetera, they will pull the rug out as the saying goes, they will pull the rug out from you. You can't react fast enough. And the next thing you know, you can wake up and a very easy five, 10, maybe even 20 % correction. Not saying that's gonna happen this time, but I've witnessed it over and over again. And you've heard me say so many times over the years, you can be on this great momentum ride where it seems like nobody, no company, no nothing can do anything wrong. And then all of sudden you wake up one day and the traders, the institutions I'm talking about today, they pull the rug out and they take profit. They don't have to have a reason. They're in this business for one thing and one thing only, just like we are, and that is to make money for their clients. The difference is they're dealing with clients that are dealing with billions and sometimes trillions of dollars. We don't. That's why we don't control the market. But these type of Wall Street firms, they do. And so when they say something, whether it's optimistic or pessimistic, not saying it's the Holy Grail, I'm just saying it's a piece of the puzzle that you have to pay attention to. And I know many of you are so hardworking, or spending time with kids, grandkids, etc. You don't have time to peruse the Wall Street Journal and research all this. So that's why I have you here with me. I'll do all that hard work for you. So that's what I'm going to be going through today. Why are some Wall Street firms worried? That is my topic. And so when we come back from the break, I'm to get into what happened today and then we'll transition into this incredible article in the Wall Street Journal. I want to mention it was just announced right before the show started. ⁓ that it looks like Spirit Airlines is gonna be shutting down. That government lifeline not coming to fruition. So probably start the segment off when I come back with that story, because I know many of you probably travel on Spirit Airlines and you wanna know what's going on. right, let's turn it over to the wonderful, happy Friday to my dear Kristen Snow. How are you, my dear? Welcome back to the John Sanchez show on Newstalk 780K which happy Friday to all of you. right, let's get down to the market and then I want to jump into the spared airlines story. Not a ⁓ scenario here going on and then we'll move into our topic. Why are some Wall Street firms worried? Get into this article from Sachs again. Some of the flashing yellow signs as I like to call it. Not red yet, not green, definitely not green, but a cautionary. All right, let's get down to the market. So we struggled throughout the day on the Dow Jones Industrial Average side. Finished down 153.31 % loss. This was disappointing. is those you that followed the stock update earlier this morning, we're up almost 300 in the pre-market session. But as the progressed, the Dow Jones Industrial Average started to digress. We had pressure from Amgen, stock was down a little over $16. 3M down over $4, McDonald's down almost $7. So you had some heavyweight stocks in the calculation that were at the bottom of the list. So it just struggled throughout the day. There's no other way to say it. The saving grace was Salesforce, CRM, and Apple, which I'll go into more detail here in a moment. So again, 153 lost, it was only 0.31%, no big deal. 49,499, but oh, we came so close to hitting 50,000 today, doggone it. But let's throw that index aside. Let's get to the record setters. That was the NASDAQ and the S &P 500. NASDAQ for the day was up 222 points, .89%, closing at 25,114, 25,000. I just can't believe that. S &P 500 up 21 points, .29%, to close at 7,230. And it was almost a half a point gain on the Russell 2000, up .46, 12 point gain, closing at 2,812. All right, we didn't have oil to blame today. Boy, what a pullback in oil prices. We're up pretty substantial over five bucks at one point this morning, but finished down $3.31, 101.84 a barrel. Gold gained $12.50, pretty quiet trade today, $4,649, excuse me, $4,643.43 an ounce. Down one basis point on the 10-year treasury, you'll close 438 for the week. We're up about seven basis points. Remember, we had a Fed interest rate decision on Wednesday. things unchanged Jerome Palisade and this was his last meeting as Fed chairman as expect Kevin worse to be fully Confirmed by the Senate here in the next few weeks and then mr. Powell will step aside on the magical day of May the 15th But he's gonna stay on the board. That was a big controversy that we discussed this week Okay, ⁓ up date on the the market now. Let's get to this situation on the Spirit Airlines story, you know, this company been in bankruptcy for quite some time about Well, I guess going back to August, so what is that? But you know, close to whatever, however many months my brains too shot to figure it out. But anyways, been a bankruptcy. But here's what's being announced. If you've been following this deal, the government was trying to issue a, we'll call it a lifeline to Spirit Airlines. It was a $500 million deal before the company runs out of cash. But the discount carrier has not been able to get sufficient support between the bondholders, certain ones though, not everybody, but certain bondholders and the government to secure the funding. The airline is expected to shut down at 3 a.m. Eastern Standard Time tomorrow morning. Now, I was not a big fan of this and I shared that with you. I don't even know how long it's been now, month or so when the Trump administration said they were looking to do a basically a government bailout with spirit. And I said, you know, how does the government get to choose who they're gonna bail out? Right? If I go out of business, they're not gonna offer me a lifeline. If any of you other business owners, they're not gonna offer you a lifeline, they don't care. And Lord knows we have seen. our history, we've seen enough airlines come and go and bankruptcy and then they get out of bankruptcy and then they hit record profits and ⁓ some way, know, that record profit just never really seems to get back to you unless you're a shareholder, right? All they do is keep increasing fees and so on and so forth. Well, the Trump administration said, look, there's a $500 million lifeline waiting for you. But in exchange for that, the Trump administration wanted warrants that would convert into a stake of up to 90 % of the company. That's right, the US government would have owned 90 % of Spirit Airlines. if you're wondering what a warrant is, so a warrant is I'm gonna give you some money in exchange, you're gonna give me warrants. And a warrant would say, in a day, that IOU is gonna convert into your stock, okay? So that's just a very, very basic example. they're used quite a bit in deal making on Wall Street. But for the government to do that, I thought that was very interesting. you know, it shouldn't surprise me. mean, Trump administration's packed with former Wall Street guys. So it doesn't surprise me. But warrants, when they convert, would have been, like I said, owned 90 % of the company. I don't know if the government wants to do that or not. But anyways. Spirit bondholders, as I said, certain ones dug in their heels against the deal, convinced that it would hurt them economically. Now meanwhile, the airline is facing relentless cost pressures from higher fuel costs. Trump told reporters today at the White House that though he would like to have the chance at saving Spirit's jobs, he would only agree to a deal with the company if, quote, it was a good deal, unquote. He said that if Spirit agreed to the administration's offer, the bondholders wouldn't be a top priority for the airline. Now, let me stop there. So here's how it works in the food chain, as I call it, of corporate America in the event of a company failing like Spirit. So at the top of the food chain, you have bondholders. Below that, you have stockholders, okay, common stockholders. In between, you have preferred shareholders, so I won't get into that. Bondholders are debt of the company, right? they have basically first priority outside of creditors as far as being paid back. Common shareholders, on your own. So these bondholders, because they're at the top of the food chain, or ⁓ Trump said, you're not gonna be a top priority, that basically left them going, so wait a minute, we're the top priority after paying creditors and you're giving us any assurances that we're gonna get our money back or these bonds are gonna do anything? To heck with it. Who knows what will happen if there'll be lawsuits? can happen. But bondholders at the top of the food chain, they said, no, we're not going to do this. And that's where it kind of fell apart. But then again, Trump said, we don't really care about you bondholders. So Spirit spent much of the past year, like I said, in actually the last and a half in Chapter 11 bankruptcy. was thinking it was last August, but I guess it's longer than that. Now, remember, Spirit, of course, had a model that everybody was envious of, right? Back in 2006, when they were born, they came in with the very low budget model. Then you had the Jet Blues of the world and many others follow right along. Well, they have some pretty good routes, but it looks like obviously they're gonna lose them. The airline said thousands of employees are gonna lose their job. The company's already begun selling off some of its aircraft and other assets, but their strongholds such as Detroit, Orlando, Fort Lauderdale, et cetera, that's where they wanted to focus, and again, it's not gonna happen. Now, they account for quite a bit. Matter of fact, 3.9 % of domestic air travel runs through Spirit, or it did. That's down from 5.1 % a year earlier. And here's the part that gets me, but the company not be able to say doing anything wrong. They've been tickets up until the recent last few days. And again, there was hope that they were gonna have this deal today, but it obviously didn't happen. You've already got and others looking support Spirit customers as well as some employees in the event of a shutdown. Yeah. Oh, remember, this was the other problem. Remember less than, well, I don't know what it's been now, three, four years ago, something like that. Spirit was at the center of a bidding war. Remember that? Between Frontier and JetBlue. And then it went with JetBlue's offer to be acquired for a price tag of 3.8 billion. But then the Justice Department said, nope, don't think that's gonna happen. An independent Spirit Airlines was better for competition and the cost-conscious flyer. Federal Judge and... agreed. Well, there you go. There's what happens when you get the government involved, right? They the deal. Now the company's bankrupt and there goes another one. So anyways, you get the gist of it. Very sad. Never want to see a company go bankrupt. ⁓ I only flown on them once and it was an absolutely terrible, miserable, miserable experience. would swear I would never fly on them again. And you know. We'll see what happens again with the other airlines grabbing up. Hopefully the employees, that's all I care about at this point. know, ⁓ they're going to pick up the routes and stuff. So if you got to Spirit airline tickets, I know what to tell you. Probably call customer service number. I'm sure they have a recording for this. And hopefully you'll a refund if because again, they're supposed shut down at 3 a.m. this morning, Eastern Standard Time. So ⁓ unless some deal, but Trump administration and spirit saying ⁓ deals done. There's there's more to do. So. Very sad on that one. I'll follow it up with you on Monday on the deal. right, when we come back, why are some Wall Street firms worried? I'm gonna share with you this incredible article, like I said, out of the Wall Street Journal that talks about Goldman Sachs and the indicators that they're seeing to flash the yellow warning signals. Let's turn it over to Mr. Ryan Netter. He's got news, traffic, and weather. Welcome back to the John Sanchez Show on New Stock 780K. Happy Friday to all of you. Once again, we finished down 153 on the Dow, a record finish for the S &P and the NASDAQ. NASDAQ up 222, a 0.89 % rise in the S &P up 21 points, 0.29%. Nice pullback in oil prices, $3.31 loss at 101.84. Well, I gotta tell you, I feel really stupid. I've been bragging about the Wall Street Journal on this story I'm gonna share with you regarding the Goldman Sachs traders. It was Bloomberg, Bloomberg article, so I apologize. All right, the title of this article, again, Goldman Traders brace for quote, froth removal as stocks get crowded. So if you missed the beginning of the show, let me just kind of bring you up to date while I'm sharing this story with you. So we've had a number of consecutive days of the market rising, right? We had an incredible month of April. Everything seems so optimistic. And oh, by the way, we still have a war going and no one's really paying attention to that. because earning season has been far outweighing the concerns about rising oil prices, even though again, oil of course has come down. But folks, we're still, let's put it in perspective. Okay, yeah, we lost $3.31 a barrel today. We're still at $101, we're still above 100 bucks. We were in that 70 range before this chaos began at the end of February. don't be too optimistic that the market's not paying attention to oil. It will wake up at one point and either love that Something positive has been said, the truce is gonna happen, the straight is open or something, or it's gonna wake up one day and go, you know what, enough is enough. $100 plus oil, not good for the economy, not good for corporate America. mean, look at Sparaday Airlines, as I just said, they're blaming high fuel costs for one of their main reasons for failing. Not good for anybody. So the can only withstand ⁓ these higher prices for prolonged period of time. But right now, we're in the heart of earnings season. The number's been good, and that's what the market's focusing on. All right, so let me get to this article. After a record smashing advance in April, equity bulls are facing a bit of reckoning. There aren't many investors left to buy. Wait minute, what are you thinking here? At least that appears to be the case among big managers. After billions of being thrown into the stocks amid the S &P 500 indexes, best run since 2020, it's talking about the month of April, the momentum is beginning. to fade. Okay, so once again, I'm gonna pause here. Remember, we're talking about institutional level indicators, institutional level buying or selling, right? This is what this is all about. This is why you gotta pay close attention to this. Hedge funds and commodity trading advisors, better known as CTAs, are scaling back their purchases. And Goldman Sachs Group's gauge of equity positioning suggests a level of crowdedness that's barely been exceeded in the past five years. The setup is adding to a sense of among market watchers, also contending with a lingering uncertainty in the Middle East and mixed earnings season at home. While the cost of missing out looms large the mines after a month that added $6 trillion to U.S. equity values, traders are gauging whether stocks have enough fuel to keep the gains going in what historically has been a challenging period of this year of the year. Remember, folks, today's May 1st. Remember the old saying on Wall Street, sell in May and go away. Now that hasn't worked in the last few years, but that's always in the back of traders minds. Sell in May and go away. Quote, we think the market is set to let off steam in the near future, excising the froth accrued on the rally to an all time high. Goldman Sachs traders, including Gale Heffeth, Leo Coppersmith and Brian Garrett. wrote in a note to on Wednesday. As I've said, the S &P 500 jumped 10 % last month. That's the best since April of 2020. NASDAQ 100 gained 16%, NASDAQ itself was up 15. Chipmakers posted the best month since the year 2000. Remember the dot com era? And the Magnificent 7, Gauge of Technology high flyers gained 15 % in April. But the fear of missing out was clearly on display with Goldman's so-called risk appetite indicator. So this is an internal indicator that Goldman has. Okay, that's what that is, risk appetite indicator. jumping to the 99th percentile from the 34th percentile of readings going back five years in only a month. So let's put this in context. So what this risk appetite indicator is, again, it's an internal measurement that Goldman traders use. what it's saying is you're in the 99th percentile, which means the investor's risk appetite is almost at 100%. It shouldn't be that way. Right? That's the optimism that I started this show talking about. And again, that's from the 34th percentile of readings going back five years, in a matter of a month. So you see how crazy April is? This is the other thing that makes me nervous about the month of April. When you have a strong month, I mean, a historically strong month, like we did, once again, that's excuse that these traders have to start taking profit and leaving you holding the bag. Such an advance suggests stocks may be prone to near-term weakness, the bank's trader said. A separate gauge of investor exposure by the bank climbed to 1.5 last week, a level that signals crowded positions. Trend-following such as commodity trading advisors, or CTAs as they're called, are beginning to trim their positions after plowing in around $80 billion into U.S. equities last month, and one of the largest increases in exposure in years. Okay, so let's stop there. How did this happen? Well again, April it was doom and gloom at the beginning of the month. Once again, as I always say, watch what the big money, the real institutional money does. They were piling in when a lot of retail investors were bailing out in April, beginning of April. And that's why they're saying, look, beginning to trim their $80 billion in U.S. equities last month, or from last month. Now to be sure, that's not the case everywhere. And this is a great point. Corporate buybacks are expected to provide a degree of support with more companies entering the open trading window after disclosing the quarterly results. let's stop there and explain that. remember, I'll you, this article is spot on as always. A number of companies, mean, gosh, was it I believe it Yeah, was Apple yesterday announcing, I think another... 100 million or so. I can't even hold me to that. There's so many corporate buybacks announced this earnings season in large, staggering amounts of money. Now, why is that important? Remember, when a corporation and their earnings announce a buyback, what that does is that signifies to investors, signifies to Wall Street that out of all the investments that is available to a company, they feel their stock is the best investment that is out there. So they'll go in, they'll use desks like Goldman Sachs and some of the other major Wall Street firms. They'll go in and they'll start initiating. stock buyback program. Now, they're not gonna sit there and announce it by any means. They wanna try to keep it as hush-hush as possible because they want the lowest price possible. But remember, they tell you that is why they're doing it. Hey, our stock is the best investment. The reality is, and again, don't have time to get into accounting principles, but the reality is the smaller number of shares that are outstanding, what we call a float of a company, then the more powerful it is when a company reports their earnings numbers in a positive sense, right? So fewer shares mean the stock moves more. If the earnings numbers are good, stocks are gonna go up, the stock price goes up, everybody's happy. That's why they do it, okay? All right, now, the Goldman Sachs buyback desk says about 40 % of corporates are currently in the so-called open buyback window. So a corporation, Usually it's about two weeks or so before they report their earnings numbers, that window's closed. They can't call up their favorite Wall Street banker and say, hey, buy me $50 million or $100 million of my company stock. They can't do that. It's kind of a quiet period. So about 40 % of corporates are currently in the so-called buyback window, and they expect that to continue until June the 12th. And retail investors remain active buyers of US stocks, inflows hovering near typical levels. at least for now. Retail flows, listen to these figures. Retail flows, that's your money going into the stock market, stood at $6.3 billion in the five trading days through April 29th, just a smidgen below a 12-month average of $6.6 billion, according to JPMorgan's quant strategist, Arun Jain. Still, the path forward isn't without a challenge. Seasonal headwinds could be one of them. Since 1928, May has been the third worst month for the S &P 500. It also marks the beginning of an age old sell in May and go away adage that warns a potentially poor May through October performance amid waning institutional appetite, a dip in trading volumes over the summer, and a period of consolidation of gains. Hedge funds are also showing signs of restraint. Gross leverage has declined. So that's again, as we've discussed many times on this show. You give a hedge fund a dollar, they go out and they leverage it, turn that $1 into $5 through borrowing against it, et cetera. That's why hedge funds are very volatile and why they can have incredible gains or incredible losses because of the leverage. So the gross leverage has declined as managers covered short positions during the rally and overall trading activity has slowed, suggesting less capacity to add to new exposure. So remember, you need the hedge funds, right? That's a three, four, five trillion dollar industry, depending on what figures you look at. Quote, markets remain resilient, but positioning is less supportive and investors are increasingly focused on downside risk, including potential margin pressure if oil stays elevated. That's according to Chris Murphy, of derivative strategies at Susquehanna International Group. That caution is showing up in option flows that signal less appetite to chase the upside. So let's kind of summarize this before we go to break. What's this article telling us? Optimism's an all time high. Historically, the month of May a period. don't care about that, Stan. Like I said, last few years, does not come play. But we do generally get into a seasonal slowdown, right? We get into the summer months. We're right around the corner from that. Corporate America's making a lot of money, but so much money has been made by hedge funds and, again, active traders that, I mean, literally, folks, they could close the books right now, meaning their trading books. and call it one heck of a very good year. Listen to these numbers year to date through today. Russell 2000's up 13.3 % for the year. Nasdaq's up 8.1. S &P's up 5.6. Dow's gained 3%. So yeah, struggling a little bit on the S &P and the Dow, but look at that action in the Russell 2000 and the Nasdaq. Very strong numbers. The Russell up 13.3, yeah, those traders that trade the small caps, they can close the books right now, walk away and go, you know what, 2026 is one heck of a year. I'll come back and wrap up the week on Wall Street. Let's turn the door to Kristen Snow, Right Now Traffic Center. Hello, Kristen. ready. Welcome back to the John Sanchez Show on New Stock 780 KOH. All right, let's kind of wrap our arms around everything that I've discussed today, right? So just had this great article from Bloomberg talking about with Goldman Sachs trading desk has seen some of the concerns that are out there. You know, again, where do we sit? We've wrapped up an incredible month of April. We've wrapped up, matter of fact, a record breaking run for stocks, right? We've had the longest weekly gain or advances it's called since 2024. Ryan Nutter: Good luck. Jon G. Sanchez: We just had a lot of good things going on. And again, I know I may sound crazy to you saying, wait a minute, what's this guy talking about as far as being cautious? We always need to be cautious. So here's my advice for you, what you need to be doing right now. First of all, if you're uncomfortable managing your own money or you're not happy with your advisor, please give our office a call. We'd love the opportunity to sit down with you and show you how we manage money with our institutional partners, 775-800-1801, or go online to our website at sanchezgantt.com. just fill out the form and ⁓ we'll get an appointment set up. We can do virtual, in person, whatever's convenient for you. So this is the time as we head into these various negative reasons that we need to sit back and take a very close look and analyze where are we? Where are we in regards to our personal financial goals? If you came into 2026 with a goal of hitting 10 % on your portfolio, have you done that? Or maybe you're only at 5 % and you still got 5 % to go. This is a great time period right now with this beautiful run up that we had in April. This is a beautiful time period right now to sit back and go, where am I? What adjustments do I need to make? see, this is what institutions do also. You hear about me talk about corporate rebalancing, you know, usually towards the end of the quarter. Well, ⁓ kind of what happened, right? This is where portfolio managers will sit back and go, ⁓ you know what? Our mandate is a 60-40 portfolio, 60 % stocks, 40 % fixed income. But boy, we had one heck of a quarter, now our 60 % turned into 70%. So what do they do? They've got to trim it down. This is another thing that no one's telling you about. funds, pension plans, et cetera, they love these gains, but they can't keep them. They have a mandate. Again, ⁓ you were a corporate or institutional manager and equity allocation's out of whack now because of the month of April, you gotta trim it. Trimming means they're selling. They're selling millions of shares. Selling millions of shares could have a negative influence on the market, most importantly, your portfolio. ⁓ So you keep that in mind. Why don't you do the same thing? This is the time you sit down. love the opportunity to go through your portfolio with you. Take a look at the tolerance the risk levels. Is it in relation to your personal risk tolerance, your goals, et cetera? This is a good time to do this, right? Coming into summer, many of you are gonna be traveling and not be thinking about money. That's why Wall Street kind of just doesn't do a heck of lot of anything in the summer months. Everyone's in the same boat. Get advantage of it, get ahead of it. Get this done before you start your summer travels. So take a look at everything right now. If you're do this on your own, please make sure that you have an honest conversation with yourself and with your spouse and take a look and see, do I have too much exposure? What would happen if the market pulls back 10 %? Are you prepared? Like I've said over and over again, especially if you're talking qualified money, meaning IRAs and 401ks, et cetera, there is nothing, wrong whatsoever by saying, you know what? I don't have any tax consequences. So let me liquidate my entire portfolio. and book these gains for the year. And then implement a dollar cost averaging program where I'm starting to put a little bit of money back into the market, hopefully on dips, right? That is a very effective strategy that no one can, like I said, can ever criticize you. Now what if the market runs up another 5 %? deal. It could also drop 5%. So again, this comes down to what are your goals? Don't worry about what the indices doing. Don't pay attention to what I'm telling you as far as the % run up in the NASDAQ for the month of April or these year to date numbers. That shouldn't matter to you. Who matters is are you on path to accomplish your personal financial goals for you and your family? If the answer is yes, cool. Keep doing what you're doing, but watch things. If the answer is no, now's the time to take a little bit of action. Be preemptive. But just don't sit back and please, please, please, please don't get complacent. I warn this every time we get into one of these situations and inevitably it seems like the market starts to sell off and I have to come back and go, I hope he didn't get complacent. didn't get too cocky, didn't get too arrogant, right? It's human nature. Everybody does that when things are going so good like right now. But you can't do that. That's when you'll find yourself is in trouble. So use this weekend, right? We got some great weather. Go spend the majority of your time outside, but you know, tomorrow morning when you're sitting down with your cup of coffee on the couch for the day starts, take a look at the portfolio. Take a look at your 401k, your brokerage accounts. Where are you? Where's your return numbers? Again, commensurate with your risk or is it not? And if it's not, time to take action. Don't sit back and become complacent because if you do and this market pulls back, you can see all these gains that you worked so hard just literally evaporate. So there's your plan of action for the weekend. God bless. Thank you for letting me be a part of your life this week. I do appreciate it. We'll see you on Monday on the John Sanchez show. Take care.