WEBVTT - Loreen Gilbert on the Markets (Radio)

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<v Speaker 1>Alright, the time is nine minutes past the hour. It's

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<v Speaker 1>time to get to our guest, Loreeen, Gilbert, CEO at

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<v Speaker 1>Wealthwise Financial, on this historic day. Loreen, thanks very much

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<v Speaker 1>for joining us here. Kind of a quirky question for

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<v Speaker 1>you first here as we get started, is it time

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<v Speaker 1>to retire fomo from our essential lexicon in the markets? Well, yeah,

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<v Speaker 1>people have had a favorite missing out. But you know,

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<v Speaker 1>right now, it's just wrapping up the rest of this

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<v Speaker 1>year and understanding where we are and looking forward to

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<v Speaker 1>next year. As far as the markets are concerned, and

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<v Speaker 1>it's been a rough year for investors definitely, in both

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<v Speaker 1>fixed income and inequities, and many investors, you know, really

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<v Speaker 1>don't know what to do. But if we look forward

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<v Speaker 1>and we look ahead, we do see some opportunities in

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<v Speaker 1>the market. Specifically, we like a lot of things in

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<v Speaker 1>fixed income in the shorter term and in equities where

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<v Speaker 1>we like once again emerging markets as the dollar kind

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<v Speaker 1>of rolls over in weekends. Yes, I'm actually larn that,

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<v Speaker 1>you know, as your markets is a broad brush, but

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<v Speaker 1>you know where most specifically, I mean, would it be

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<v Speaker 1>the likes of China and the China's of this world,

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<v Speaker 1>perhaps there's a lot of people have been gaining more

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<v Speaker 1>faith in India. What's the deal with you? Yeah, no,

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<v Speaker 1>we're actually looking at Latin America is one area of

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<v Speaker 1>interest as well as as well as the Pacific rim

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<v Speaker 1>um for emerging markets. So, you know, it's been hit

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<v Speaker 1>hard this year with the dollar being as strong as

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<v Speaker 1>it has and and but now that we see that that,

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<v Speaker 1>we do think the dollar is going to weekend once again.

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<v Speaker 1>I think it's time to be looking at all of

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<v Speaker 1>an international again. And then in the developed areas, we

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<v Speaker 1>love Japan and the UK. You know, it's kind of

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<v Speaker 1>interesting when we watch the data in the US economy

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<v Speaker 1>and then what we can learn about the global economy

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<v Speaker 1>as a result. On the one hand, you had consumer

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<v Speaker 1>confidence today um jumping to a very high level, highest

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<v Speaker 1>we've seen in eight months. On the other hand, you

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<v Speaker 1>know home sales existing US home sales weekend for like

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<v Speaker 1>the tenth month, and it's a record retreat, right, so well,

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<v Speaker 1>the interesting part about the consumer numbers were the expectations

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<v Speaker 1>that were the first time above eighty this year. They

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<v Speaker 1>rose to eighty two point four, which was a remarkable improvement,

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<v Speaker 1>and that was directly a result of you know, gas

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<v Speaker 1>prices going down, uh, inflation starting to moderate, so that

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<v Speaker 1>the consumer is feeling a little bit better about things.

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<v Speaker 1>But just like you said, with rates as high as

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<v Speaker 1>they are interest rates with housing, we also saw a

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<v Speaker 1>number of thirty two percent of homes were being purchased

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<v Speaker 1>with all cash, So people who are mining homes are

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<v Speaker 1>looking at ways to avoid those high interest rates. But

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<v Speaker 1>we haven't seen the full effect of higher interest rates yet,

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<v Speaker 1>and that will be the lag that goes into effect

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<v Speaker 1>next year. What we heard from consumers is they're thinking

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<v Speaker 1>about not buying the big goods that we saw in

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<v Speaker 1>the past, but more focused on services and vacations and

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<v Speaker 1>those kinds of things, and not really buying those big

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<v Speaker 1>ticket items like cars and washers and dryers and things

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<v Speaker 1>and and and and stocks and cars, washers and drivers

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<v Speaker 1>and stocks. Not not buying you think, and is that likely? Well, well,

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<v Speaker 1>you know, I don't. I think that the consumer has

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<v Speaker 1>actually still been investing in the market. So did you

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<v Speaker 1>say stocks, Yeah, it sucks, Yeah, I think it was.

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<v Speaker 1>It kind of just a playful question that really basically

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<v Speaker 1>talked about obviously markets and people buying, uh buying or

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<v Speaker 1>selling equities. But I'm sure my colleague was shot as

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<v Speaker 1>a question for you, I wanted to have have a

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<v Speaker 1>think about this arena because you know, we're looking at

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<v Speaker 1>SMP five under targets and web people were positioning themselves

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<v Speaker 1>and analyss overall going underweight cons You miss staples. Doesn't

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<v Speaker 1>that surprise you? If we're heading into a recession, it

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<v Speaker 1>does a prize. It is surprising because we know everybody's

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<v Speaker 1>talking about a recession, so the typical recession plan would

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<v Speaker 1>be consumer staples. Right, But um, I think just right now,

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<v Speaker 1>what we've seen, especially this year is within each sector

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<v Speaker 1>and category, there's been a huge divergence as far as

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<v Speaker 1>equity returns. So not writing off all of consumer staples,

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<v Speaker 1>but looking carefully to where you're investing, and I would

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<v Speaker 1>say that in every sector that there is, there's been

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<v Speaker 1>this huge divergence and returns with the insectors. So it's

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<v Speaker 1>really looking within the sectors to say where are the opportunities.

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<v Speaker 1>And like you said, it is somewhat confusing that people

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<v Speaker 1>would not look to consumer staples because if we think

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<v Speaker 1>we're going to go into recession, then yeah, yeah, Lorene,

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<v Speaker 1>I'm kind of curious. We'll go ahead and finish your thought. Yeah,

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<v Speaker 1>so an area that we like quite a bit would

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<v Speaker 1>be on the industrial side. So we think, you know,

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<v Speaker 1>it's more of a value place still versus a growth

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<v Speaker 1>play in the market, and we do see opportunities in industrial.

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<v Speaker 1>I'm trying to think about how the economy and society

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<v Speaker 1>look after we get through this, and I'm just wondering

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<v Speaker 1>whether or not you've had a chance to think about this.

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<v Speaker 1>Are we moving to yet another new kind of new normal,

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<v Speaker 1>one with higher rates, more inflation, and workers um that

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<v Speaker 1>have a lot more flexible hours and approach to our Yeah, well,

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<v Speaker 1>on your question, what I've been thinking a lot about

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<v Speaker 1>is that when whenever we come out of a bear market,

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<v Speaker 1>there's usually new leaders that lead us out and new

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<v Speaker 1>leaders that continue. So many investors are going to get

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<v Speaker 1>stuck in some of those older names that did really

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<v Speaker 1>well in the past cycle that may not be the

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<v Speaker 1>leaders going in this next cycle. And what I see

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<v Speaker 1>is I think AI is finally coming of age. We've

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<v Speaker 1>been talking about it for thirty years of how AI

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<v Speaker 1>going to really be implemented, and it finally is the

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<v Speaker 1>implement And like you said about workers, one of the

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<v Speaker 1>things that companies are looking at is how can they

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<v Speaker 1>use AI to decrease the amount of labor that they need,

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<v Speaker 1>and with changing labor force and not as many people

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<v Speaker 1>working and all of those things. So you think AI

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<v Speaker 1>is of age and looking at those companies that are

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<v Speaker 1>you need to see different companies purchasing other AI companies

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<v Speaker 1>and implementing them into their company and then what can

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<v Speaker 1>that do to our society to help us move forward?

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<v Speaker 1>But what are you actually seeing that in terms of

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<v Speaker 1>that space? Then, I mean you're u seeing real value propositions. Well, yeah,

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<v Speaker 1>I mean you look at what's uh, you know, Google's

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<v Speaker 1>definitely outfits working on this implementing AI, at Microsoft buying

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<v Speaker 1>open AI. And so we see these different companies that

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<v Speaker 1>are purchasing other companies or really thinking through AI, um

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<v Speaker 1>Rockwell automation. Looking at that all of these kinds of

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<v Speaker 1>companies and what is that going to mean for our

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<v Speaker 1>society and how can they be leaders going forward? And

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<v Speaker 1>here's a little bit of a quirky question as well.

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<v Speaker 1>A lot of these big tech companies have become almost

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<v Speaker 1>like staples. Would you expect them to start paying dividends

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<v Speaker 1>and higher dividends? I think dividends. We've seen many companies

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<v Speaker 1>move towards dividends, definitely as a way to pay back investors,

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<v Speaker 1>and and and investors right now have have been looking

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<v Speaker 1>for that as income was lower in the fixed income space,

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<v Speaker 1>having some kind of income from equity perspective. I think

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<v Speaker 1>that that trend will continue. I definitely think so. I

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<v Speaker 1>think investors are looking for income and companies I think

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<v Speaker 1>will be looking at paying more dividends. All right, Loreen,

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<v Speaker 1>thanks very much for joining us. Loreen Gilbert, CEO at

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<v Speaker 1>Wealthwise Financial on the line from Laguna Beach. She probably

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<v Speaker 1>was out on the lanai or out on the beach

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<v Speaker 1>picking her stocks, getting ready for our interview.