2020 EP1124 Planning Matters - Michele Schnieder MarketGauge - Sectors To Watch

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When planning matters radio program.

This is planning matters on planning. I am Peter Rochon, founders of Rochon planning in with me today. I've got Michelle Schneider she is the founding director of market gauge shall you pay a lot of attention to what's stocks or help there.

What companies are doing and where pricing should be reversed where it is. If I if I could get your pulse on the economy right now.

I think that would benefit myself in the listeners a lot of attention. That whole year has been extremely interesting as we know starting out with the unexpected pandemic and I now have a new all-time high with 30,000 so there is been one thing about the market is very forward thinking you have lagging indicators when you have a meeting so we come out.

Let's say for example job that's actually a lagging indicator of the market is looking more now towards what's going happen in 2021, and we've had three major things keeping this market up starting after the pandemic we had the stimulus money and that bill on the table of what's going happen in 2021 how much you can get there, etc. number two we had the vaccine.

The walk actually really turned out to be warp speed with three companies. At least now competing to get a vaccine out now finally I think the real cherry on the top. This week is that Biden is now entering a transition he's chosen Janet Yellen at the Treasury Secretary people look at her as dovish, along with probably powerful thing on a chair to them together again and keep very accommodative and so people think the economy just going to reopen everything going to be a ring in 2021 will have some real growth with side Yellen and Powell some familiar names. There for us so the market doesn't like unexpected they know what to expect from most absolutely, and I think the two of them actually are a formidable team she's got the experience and he's really, I think Dragon market through probably one of the more volatile time that we've seen in recent years since 2008, so I confident that that's what they are exuding to the market right here absolutely well with the election now behind us. The warp speed.

They said hey we cannot develop a vaccine that quickened in the election past and all of a sudden it was, it was reality. So, of course, some hope they are now my worries, my concerns there is that so much of the capitalization of the major market indices and so many mutual funds hold some of these tech giants could we see a reversal in some values there as if the vaccine is effective there. There is a change in direction and were going back to more in person work environment and end the text reliance that we had during the pandemic fades to some extent human nature.

We need to be together. So I think you'll have a certain segment of the work population that will continue to work from home and it will be practical for them to work from home and offer specially I think your dog and Really are loving it right always been the winter through all that we don't have a definitely a segment that will stay home and companies a lot of money to if they don't have to pay for brick-and-mortar retail office space commercial office space and I think you also see a tremendous percentage of people who will go back to work who want to be in a situation where there sitting with other people. As I said where we like the people. That's just who we are human beings actually play that will be interesting as far as the technology you're asking and they attack a really great question here because I didn't so carefully watching over the last couple months really and I talk about what speed on Washington's election is this rotation of the big pack and more into the small-cap value stocks and output and energy and oil starting to catch up a little bit and really what I'm wondering will is not continuing.

My resume, which had an incredible year now filled off with the idea that people will be able to move out of their homes. Another factor involved in this big tank.

This competition a lot of what happened in the light of these companies.

They have been very busy in their own level of warp speed being our theme for today, developing technologies that will help no matter what happens with people whether they are at home or whether they are actually out in the office of the newer companies that have emerged like hot spot. For example, or Zebra technologies or the IPS is another one for Gogo, which is area not companies have now come out to compete with the big Amazon, Apple, Netflix, Google, so I really see a lot even if we don't generally get back out as much as people anticipate they could.

I actually think I need more merging or what we call the small-cap growth stock as a place to be in 2021 so text may be have run its course and could be out-of-favor as we turn into the new year necessarily out-of-favor people are always going to use Amazon to shop and people are always good by computers with Microsoft technology, etc. I just think that these giants these days don't have that much more upside and if you're looking to be a new investor will want to increase your portfolio as we get into 2021. That's not where I look.

I would be looking as I said at the next Apple. The next Amazon companies others tech companies that have emerged over the last couple years, and particularly even over the last several months, what we are looking well. Speaking of warp speed and shooting prices to the moon Tesla I know is one that you paid a lot of attention to where you see them in just 2021 beyond more than one company. Let's get the blue I think it's ready now the second richest man behind tailgate and so far I like to call Michaela now you will like the king and got some real fundamental support that Wedbush just came out and said $1000 target and she canceled because of the cells they have throughout Europe and China and he's constantly trying to improve the technology getting one more involved, but also some of the software and the batteries looking at base, so seems to be in its own fumes, even when the market was going down, and during the whole swoon and went down, but not nearly as severe turned out to be an incredible by opportunity at some of the other stock so you keep your team is fingering everything the other guys that are now called the space parens which is Branson and dado several looking at station anthem: at the next frontier and templates to be the benefit of that because electric cars go that got the guy said the movement now going up to $1000 a share, or else that Google or Amazon being so high in price.

A lot of investors have a hard time finding an entry point at those prices, what you think of these fractional shares. We think of these Robin Hood concepts for investors to buy smaller, more affordable bite-size pieces of these companies. I think it's great. I think it's great.

One of the other unexpected results of the pandemic was that people at home. As you mentioned Robin Hood account. People started speculating the market and for a while they are the individual speculators were doing far better than most of the big mutual funds and hedge funds if they were afraid to buy and these kids. In essence, no fear, and so the fact that you can get them to participate with fractional ownership and the fact that they are now looking at the market and adding liquidity to the market on the commodities trader on the floor back in the day and that is exactly what you wanted the same commodity you wanted to do speculators come in and buying add liquidity to a particular future, whether it be oil or gold or cocoa or oranges futures and so that's what they're not doing with little to create another phenomenon which is why no way to get out watch the dump and then get back in. Otherwise you can really get caught big swings 20%, up 20% down. So that's the one thing they haven't quite yet figured out the strategy 12 millennial's really changed everything.

Technology has really changed everything.

The baby boomer generation got hired at one company worked a full career. There may be the generation before the baby boomers the greatest generation retired from that same company and they think they had a similar investment approach by and hold and hold and hold forever and then utilize that same fund in retirement.

When you needed some liquidity whereas millennial's hop from job to job and they also tend to be more active traders hopping from fund to fund or stock stock.

Brilliant innovation is 100% accurate. Absolutely. And I like that my liking will cut on the floor in my guiding me about how to get started again and it's really what kept you alive because commodity and everything cycles and you don't want to fit through a 50% downturn like we just thought in February March like that. A lot of people showed Schneider with market gauge. She is the director of trading education and research any others that you particularly have your eye on for the next couple months. Michelle in the way of food I think is really the way to go.

Right now we have. While all of this happening going on or what I like to call Disney World close but the more stock market has become the new Disney World that will do have a declining dollar. We also have food prices have gone up by 30, 31% in some cases, 33, nine, and so we're looking at a potential stagflation situation is a go to 20, 21, so we bought corn today were getting actually into it.

We were already long DBA long sugar long coffee and was now starting to look at some of the oil and natural gas, which is also be made out and were looking to reenter the metal yet waiting a little bit longer on short-term I hear a lot of people concerned that there could be more shortages on the stocks are the grocery store shelves as well as another shut down perhaps in front of us, where oil had you know will glut in the market and was negative in price. At one point in time you see that kind of thing repeating and be being good for any potential buyers will uncouple what we really do have a legitimate shortage of food, mostly because a lot of the food producers stock and bring a lot of scenes because there was a Glock and now with the demand being high supply being alone with supply chain disruption is the reason why you think these prices go up thinking happen with oil open it just came out and said that looking at a demand rising about 25% in 2021 so we can know being cyclical. The hunting had been under pressure for 40 years and now they're all starting to come to light and then on top of that we have these vessels. The Marine transportation out there anchor can get it now clogged up telling people pick up your order because the truckers may not be able to get through then and I'm able to meet the so we now simple economics right supply goes down demand goes up. What is that create and that's where I think about it a look at it in a negative way as the commodities trader I look at it as an opportunity, Michelle Snyder, director of trading education research at market gauge also have a new book, plant your money tree, a guide to growing your wealth that's your newest and latest correct correct and it's a really good book to pick up because it's written in a very easy language and talk about a lot of stuff that you and I just talked about. And I would give you an actual compass or navigation system so that you can claim your way into the things with the lowest amount of risk and the highest potential for so we appreciate your time show for being here and join us on planning matters radio planning, the content of this review shows tax or legal advice from an investment investment strategies mentioned involve risk, including the possible loss by three services offered some capital management recently and strengthen claims paying ability from annuities may be taxable as ordinary visuals for specific product is a result