00:00 Speaker A
Joining me now, we’ve got Sandra Chow who is the Point Wealth Capital Management CEO and founder. You said the worst thing that investors can do right now is panic sell. Break that down for us.
00:17 Sandra Chow
Hi, this is uh, Sandra. Nice to have you uh nice to see you again, Brad. So, yeah, I mean, the worst thing you could possibly do would be to, you know, sell during this panic time. If you really want to see this as an opportunity, especially for long-term investors. So, if you’re in for the long term, dollar cost average into the market, you know, buy the dips. And typically, for long-term investors, it’s a good entry point when the VIX is at 30 or above. The next 3, 6, 9, 12 months, um, actually outperforms historically.
01:40 Speaker A
And so with all of that considered, where are the areas of the market and and what is kind of like the decision tree that you’re recommending people work through in order to to best qualify? What’s a trade that they should be buying on the dip versus one that’s down for a very good reason that they should probably be staying away from until there’s a little bit more clarity?
02:25 Sandra Chow
Sure. I mean, you know, you want to stay with the common stocks that tend to outperform uh or the common sectors that tend to outperform during downturns. Uh stocks like um you know, consumer staples, utilities, healthcare. We’re looking at Costco, Walmart, NextEra Energy, Duke Energy, um, you know, and the healthcare area, we’re looking at John we’re looking at Johnson & Johnson and United Health. And then, you know, something that’s kind of just a globally diversified bellwether is, you know, ETFs such as DIV. These are high dividend paying, globally diversified stock ETFs where you know, you can dollar cost average in and you’re getting paid to wait, right? You are getting paid 6.61% in DIV, uh and um and you could just, you know, uh continue, wait. We’ve never been through a downturn that we haven’t recovered from.
04:29 Speaker A
And so, as you’re thinking about some of those sectors and and stock picks where you’re identifying opportunity, what should people especially in assessing what the fear gauge index, the VIX, can tell them about how much more volatility could be yet to come? How should they be assessing their portfolio up against that volatility amidst some of the turmoil that’s played out?
05:19 Sandra Chow
I mean, I would moderate expectations, our own expectations of you know, that this is going to be short term, right? Um so, you know, I I really our base case is that on the front end, a lot of countries are talking about retaliatory tariffs. But on the back end, um, you know, they’re likely having discussions and they’re likely going to be some concessions. And then um, you know, then they’re, you know, after that, there might be some kind of relief rally. But understand that these tariffs, you know, are going to remain at elevated levels. So you really do want to expect that the volatility is going to continue, you know, for the next, you know, few weeks or months. Not all tariffs even have been announced, right? So there’s uh potentially more tariffs to come. But that said, you really want to look at this as an opportunity because our investments are, you know, long-term. You don’t want to be just in the market uh which is known to be volatile anyway, uh over the short term over just a few months.
07:32 Speaker A
And so just lastly while we have you here, as we’re thinking about the checklist of what to do if one of your investments is very clearly embroiled and caught up within some of the tariff talks, how do you work through that checklist and then aptly make decisions?
08:03 Sandra Chow
Sure. So, you know, now is a good time to um tax loss harvest. So if you’ve got gains, you’ve got a position that you know has still substantial gains in it. Now’s a a time to maybe look at um, you know, selling some of that or even all of that and maybe buying something comparable, so you don’t have um, you know, you’re not out of the market, right? And then that way you’re able to, you know, capture those gains, but you know, not have such a huge tax liability and still be in the market. Now, if you’re if it’s lower uh than where you bought it, you know, maybe you even buy more or buy more of that sector, so that you’re not overly concentrated in that one particular stock.
09:24 Speaker A
Sandra, thanks so much for taking the time here with us. Good to see you.
09:30 Sandra Chow
Thank you.