Diversification Works

In a week of sharp decline, we’ll discuss why market corrections are not unusual, volatility is expected, and diversified long-term strategies are key to managing risk. We’ll also talk about the recession narrative, analyze inflation/rate trends, and look at what levers the Fed can pull. We wrap up with a conversation on government efficiency initiatives and what they mean for the job market and the private sector.

Key Takeaways

[01:10] - Understanding market corrections [05:47] - Recession narratives and what the Fed can do [10:16] - Diversification works [11:52] - Updated outlook on inflation and rates [16:00] - Eliminating gov’t spending + reallocating to the private sector [21:06] - Musk, Tesla, and Magnificent 7 performance

View Transcript

Links

JP Morgan: Average intra-year decline = ~14% Historic S&P 500 corrections since 1965 Fastest market corrections since 1950 Market-implied US recession probability in the next year.. 20% 25% of jobs added in the US economy over the past two years were government jobs, up from 5% in 2021 and 7% in 2022 Unemployment filings up 15% in DMV

Connect with our hosts

Doug Stokes Greg Stokes Stokes Family Office