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ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION

June 3, 2022 | Liquidity Risk and Capital Allocation Mistakes

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com

Useful insight in this discussion on consumer spending, ETF/mutual fund liquidity risks, common allocation mistakes in housing and investment portfolios, and the value-add lacking in mainstream financial advisory services. Worth listening.

Ted Oakley interviews Danielle DiMartino Booth about her outlook on global economics, inflation, U.S. housing, Federal Reserve policy, and how it will affect investors. Ted Oakley interviews Danielle DiMartino Booth about her outlook on global economics, inflation, U.S. housing, Federal Reserve policy, and how it will affect investors. Here is a direct video link.

The chart below since 2005 (courtesy of Isabelnet.com) shows that the value of equities has been dropping for the last six months, but their weight in broker-advised accounts remains near all-time highs at 62% of assets under management. Sentiment may be bearish, but the broker/advisory crowd still keeps client funds in the equity fire (where fees are most lucrative for the firms). So far, clients are still holding the exploding dynamite; this too shall pass. Capitulation selling is yet to come.

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June 3rd, 2022

Posted In: Juggling Dynamite

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