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Capital Financial Advisory Group President Pete D’Arruda on why there are good opportunites in stocks even though many investors are leaving stock f...
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Now investors are running scared they pulled five point seven billion dollars from US stocks in the first week of August and put almost all of it.
Into bond mutual funds we want to bring in -- -- -- to president.
Capital financial advisory group -- thanks for joining me.
Thanks -- -- -- investors are freaking out I mean our our is it for good reason.
Well what they're always gonna freak out unfortunately Melissa because they're they're too reactive to what's going on today and tomorrow and not looking at a long term plan of five or ten years.
I don't know I mean when you look at what happened with Knight capital.
And you see how much computer trading there is out there for the little guy a lot of times he feels like he's -- you don't think that's crazy.
-- that well they've just invented a new switch and Internet they can get trades in faster so now the race is even faster to get in and make its rate.
So if you're going for a long term strategy if you're worried about what's happening I tell everyone who's looking at saving for retirement to make sure to have a retirement plan.
Too many people are playing checkers right now when they should be playing chess thinking about thanks taking some time taking a time out and looking forward.
But now.
When people sell it's a good time for other people to buy some buying opportunities exist but if you're trading back and forth -- -- -- rating agency that does research on investor behavior and for the average investor is only averaged about 2%.
But what about two to 3% I guess the last twenty years when the S&P is about 8%.
So just a static environment is better but emotions over take people to many times.
Emotions definitely over take people to -- the retail investor usually hops in an -- exactly the wrong time.
You look at the past 23 weeks they've taken 63 billion dollars out of US stock mutual funds but in that time the S&P has gone up 4% about that they -- That's what -- fed -- -- makes a living on that showing people how they shouldn't be doing things at the wrong time but it's one thing to say that's another thing to do it.
So if you look at for buying strategies now.
I think food and water I mean we're all gonna need to -- we're all gonna need to -- so -- -- companies food companies especially those that specialize in gluten free products more more people now we're getting on that craze of the -- free diet and so if you investing good companies for the long term I don't think this is the Fed I think it's gonna stay for a long time until we invent something new besides water that we need.
Also -- mean if you look at the average investor as we said to be getting getting into bond funds it seems like now may not be the best time to do that.
Right -- A -- safety what -- we try to do -- solve for income in the future if you're saving money.
Look at why you're saving it and if retirement is one of the reasons put some money in a safe place that grows for guaranteed income.
That's your large suitcase in your four suitcases and house and then you're smaller suitcases you can take.
Varying the differences and or -- of risk and put an altogether therefore if you do lose money in the small suitcases you always have your big suitcase going strong.
-- you restore investor confidence in general though I mean the average investor.
Speech in the market has really been -- since the financial crisis and it seems like there's stressed.
Scandal after scandal or messed up after mess up that makes them feel like the game is rigged and they can't possibly figured -- how we changed -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- sounds break obligated all right.
Peter -- -- -- that thank you so much for coming on.
