Financial news headlines and your portfolio

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The financial news media hates you. Okay, maybe they don’t really “hate” you, but they are in a battle for you and your clicks.

Headlines on websites, social media, and TV can be just plain scary! If you read them and acted on them, it could potentially destroy your entire portfolio and wreck your financial goals.

Today we’ll discuss what to do about the headlines. We will also offer our thoughts on tariffs and the trade war and what impact it may have.

Here’s to wise investing,

Brett Pattison

 

 

For those that like to read, here is a transcript of the podcast. 

Brett: Hello, my friends. Brett Pattison here with Iron Gate Global Advisors coming at you from the financial capital of the West, Salt Lake City, Utah, where my friends, the financial news media is out it again. I think they’re out at 12 months a year, frankly, but they’re in a battle.

That battle [laughs] that I’m seeing is for nothing more than clicks for readers. And one of the most important things that we can do at Iron Gate Global Advisors is prevent our clients and any– anyone else from making mistakes.

Now, if you– if you read what the financial news media puts out and- and you act upon what they are putting out, that would be an enormous mistake. Let me give you a few examples. There’s a few headlines just to give you an idea of what they’re up to, that we’ve gathered over the last few months. And there’s certainly more than this but these are the ones, I’ll- I’ll just kind of read off.

It says, “The Big Squeeze, why the stock market’s bull run faces it’s biggest threat in years.” All right. The next one, “The big bear market for stocks lasting several months appears to have begun.” Okay, several months. That’s fantastic. Here’s the next, “The market will crash this year and there’s a good reason why. Next, “Morgan Stanley–” pretty reputable place– “Morgan Stanley warns markets the best times may be at an end.” Oh my goodness. “Mobius–” the next one– “Mobius says there’s a 30 percent correction coming for U.S. stocks.” Huh.

The next one that I just pulled today. I pulled up a website called marketwatch.com. It’s probably the worst culprit of all the financial news media. It says, “Trump may kill the global recovery” and “Why this bullish S&P 500 chart pattern may backfire.” [Laughing]

So, I’m sitting there and I’m reading these headlines and I’m looking at the S&P 500 and year to date, the S&P 500 is up 5 percent. As of right now, a little over 5 percent in fact. And this- this horrible– this apocalypse starting trade war is probably getting as- as much of the headlines as anything else that I read off to you. And all of these headlines and this trade war, the markets have just shrugged it off and continued to move higher. Now, the emerging markets have kind of been beat up a little bit. And it’s a good thing we don’t have a ton of money over there. But- but for the most part, the markets have shrugged it off. U.S. stock market, S&P 500 up- up– slightly over 5 percent.

So, what’s our take specifically on the trade war and all these tariffs? 98 percent of our clients are invested for longer than 6 months, longer than a year. Our focus for them is build– building wealth over the next 5, 10, 20, 30 years. And we focus at Iron Gate Global, we focus on individual companies. We buy a company also known as a stock. After we’ve spent over a hundred hours of research, we know the impact that a trade war tariff is going to have on those companies. And honestly, through all that study, through all that research, we’re not too concerned about it.

We share the same view as Warren Buffett, as Jamie Diamond. We agree tariffs aren’t great. There’s no– tariff, that’s a good thing. But these tariffs are so small relative to the global economy that it’s nothing to really worry about which is why the S&P 500 and our all cap portfolio that most of our clients have exposure to, has done so well this year. We believe things will work itself out that these countries will come to an agreement that is logical and that might take time. But again, we’re not too worried about it.

So, what advice do I have for everybody? Well, I would ignore the media who wants nothing more than you to click on an article so they can make money. Focus on your plan whether that be a 5, 10, 15, 20, 30, 40, 50, 60-year plan, whatever that may be. And lastly, if you are concerned because you read that the big bear market is on it’s way or that there’s a 30 percent correction coming for U.S. stocks.

If you’re truly concerned and want to talk to us about it, reach out. We’re more than happy to read any article, to offer our opinions and we hope that these podcasts certainly help in that regard. So my friends, ignore the media.

Enjoy the rest of your summer and we’ll see you next week. Thanks folks.

Female Speaker: This is a purely public broadcasting, is not intended to be personalized financial advice for any individual specific situation. Each individual’s financial situation is unique and the topics discussed on this broadcast should not be relied upon and/or considered as personalized advice. Specific financial securities discussed are not intended to address any listener’s particular financial situation and should not be considered recommendations. This is for educational purposes only.

For more information please contact Iron Gate Global Advisors at info@igga.com or by calling 888-591-0334.

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