Video Transcript:

Good afternoon everyone. Brent Chavez, Aequitas Equitas Investment Group. I just wanted to get a video out to all of you to update you on some changes we’ve made in most of your portfolios.

Today we raised a lot of cash in your portfolios. And it’s not because we have a fear of some major event that’s about to take place, it’s more out of trying to protect the large gains that we have in our portfolios, coupled with some changes in the markets that we want to really take pause at here at AE Investment Group. So, to make sure that we don’t give up the gains that we’ve seen in the last several months. 

We built portfolios individually for each of you… so it’s not 100% the same across the board. Some of you have more cash in your accounts than others. 

So, just to update you why we are doing this, last time we spoke, we talked about how all the technicals of the markets were really pointing around the globe that most likely the markets were going to go higher, and that’s exactly what took place. And so we’ve had a pretty substantial move up in the markets and gains in our portfolios in a very compressed period of time. It’s good and it’s bad, because we find ourselves in a market where the fundamentals have really been stretched on valuations of what the cost of the shares are in these particular stocks across the spectrum. Also we see technical deterioration – whereas the technicals of our last video were very clearly pointing to breakouts. And now the technicals are pointing to more of a pullback or a rollover in the markets, coupled with what we see with the Coronavirus and the potential issues that that could bring to the market, it’s not something we’re overly concerned about at this point… but, added to the stretch valuations, the technical indicators pointing to a pullback across the board in the markets, we thought it’d be a good time to pause and let things digest as far as which which direction this market wants to go.  Hopefully, it will just go sideways, and then resume its upward trend. 

I feel overall that we are in a bull market, not any type of bear market, and potentially it’s the beginning of just another leg up to a much larger bull run coming in the future. But, in the meantime, again, we don’t want to stay in the markets when we feel that there’s a clear indication that maybe we should take some of those profits we have him and sit on the sidelines. 

If you have any questions feel free to reach out to me, give me a call. I will be reaching out to many of you via phone, but I just want to get this video out in case you look at your TD accounts and you see, “hey, why do I have so much cash?” That’s the reason why. 

Have a great day. Again, please feel free to reach out to me.