Financial Consultant Derrick Kinney

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Welcome back to good day we appear to be headed for a modestly higher opening today after going off another clip on wall street good morning to financial consultant derek kinney three percent drop in one day and everybody’s blaming it on china i kiai my eyes are glazing over at talk about china i don’t do that much business directly with china we don’t it actually

Accounts for about seven percent of our exports to him but here’s the deal a lot of investors right now we’re worried and anxious about their biggest retirement asset shrinking right before their eyes they don’t know what to do about it and so china matters for a couple reasons to the investor first of all there’s a lot of uncertainty about their economy right

Now news out yesterday manufacturing service industry a lot lower than expected second largest economy in the world has a big impact but also now the fed is considering whether to raise rates are not all those create sort of a perfect storm for investors and it leaves them worried about what does this mean to me if you really think about it it’s a little bit

Ridiculous in my mind anyway because i it’s not china’s in a recession it’s china’s going to grow six percent instead of seven percent it’s not that interest rates are going to go to seventeen percent they’re going to go from 0 to 0 point two five percent still china’s growing just not as fast interest rates are still very low that’s exactly right the key right

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Now is expectations wall street always has very high expectations if those are not met it causes quite a bit of depreciation in the market so what can investors do right now what does this mean to them first of all realize the 401 ks long term there’s going to be bumps in the road along the way of a person’s 50 years old now wants to retire at 65 they can afford

To take some risk but let’s say somebody watching is feeling really worried and anxious about i don’t want to lose any more money so one way to put a tourniquet on that wound if you will is take some of the money out of your growth area move that to like a stable value fund but keep adding money every paycheck into the markets or you’re buying on the dip right

You’re preserving the big nest egg while buying some money on the lower side so you take a bit of a loss you put it into a safe place a safer fund if you have that me and everybody should have that choice and then look at those growth stocks the riskier stocks the ones that fluctuate a lot more and look at them as a deal that’s right now that’s really it’s they’re

Having a bargain-basement sale on what are pretty good companies that’s right and sorry the key though is to remember not everybody has the same perspective if there’s a sale at the local retail store i’m going to go by if there’s a sale on wall street most people panic and want to sell right but also realize that’s not the best long-term strategy but for the short

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Term it could give you some relief from that anxiety but also remember dollar cost averaging is the key here we’re buying different prices all along the way and long term is definitely the best way to go is the us economy in good shape because unemployment is down we’re creating 220 250,000 jobs every month that’s not quite enough to keep up with the growth in the

Population and a lot of people older people just got out and took early retirement people my age said to heck with it i’m just going to start collecting social security early and take my retirement so probably what 30 35 right yes the key right now the us economy is actually showing signs of improving on a couple of fronts first of all housing numbers still look

Strong consumer confidence still looks good company earnings have been a bit waffle e but the key right now is on the con the long-term future things do look good but they’re not growing as fast as many people want and that’s the same thing with china things are growing but not to the pace people want so what i think is going to happen at least in the short term

Expect a lot of volatility we may see the market drop even further than it has and people need to expect that and prepare for that and not panic but be smart about their choices we promise we won’t panic a link to derek’s website on ours fox for news.com thank you so much my pleasure

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Transcribed from video
Financial Consultant Derrick Kinney By FOX 4 Dallas-Fort Worth