By coinnews 
00:00 Speaker A
How can investors implement a de-risking strategy right now?
00:05 Speaker B
Well, it’s good to see you, and I and we’ve been stressing de-risking for the past six months, and what that means is look at your risk tolerance. We think right now that the Nasdaq has been overvalued or priced for perfection for some time. And in a market like this where the uncertainty level with tariffs, higher interest rates longer, we were telling people, we’re still telling people to lower your exposure to the Nasdaq. Trading at 27 times earnings, we think there’s just too rich and dominated by a handful of stocks. Also, we think focusing on a shorter term in your bond portfolio, which takes away the risk of higher interest rates creeping up. And so we’re telling people shorter term on bonds, and we’re focusing on dividend paying stocks to help pay you while you wait, because the volatility in this market is self-induced. It’s done by policies. It’s also done by a second big thing, which is stagflation, which appears to be happening in this market. So interest rates are staying longer, are staying higher longer, and the fact is, the Fed is being hesitant to cut interest rates in an environment like this. So we think there’s a lot of risk out there, and we’re cautioning investors just really know what you invest in, lower your risk profile a little bit by taking uh I would say take a little more off the table in the Nasdaq area right now.
00:59 Speaker A
You know, it’s great advice, and and Max, I I wonder for the self-induced nature that we’ve seen play out here, as you’ve seen some of the the moves higher, at least in the interim period of time, the the dead cat bounces, if you will, where should investors be kind of thinking through or going through their checklist on where to and where not to kind of chase that move higher, even if it is on a short-term basis?
01:26 Speaker B
I think the first thing investors have to understand is what is their time horizon, and understand that we go through this volatility. This isn’t the first time this has happened. We had in 2018, we’ve had issues in 2022 when the Nasdaq was off 34%. So I think they should understand what they own. I think they should really focus on buying good qualities. We we prefer dividend paying stocks and high quality bonds. This is not a time to try to trade off the bounces and, you know, the lows. Just own good quality companies, short-term high-quality bonds, and just prepare for volatility. We’ve seen things like this before and understand this can change in a heartbeat if you see policy changes. So you don’t want to be caught just out of the market, but you just want to lower your risk profile.