#41 - Market Brief - November 20, 2023 w/ Glenn Moore

As of November 17, 2023, the S&P 500 index is soaring with a hefty 18% gain, while small cap stocks and bonds are trailing behind with less prominent returns. A mere seven stocks are maneuvering more than 90% of the total return in the S&P 500 and NASDAQ. 

Beneath the surface, cautionary signs are emerging that could spell economic turmoil. Glenn pinpoints the contraction of bank lending growth and an alarming rise in delinquencies in consumer debt, particularly among younger demographics, as potential omens of a rocky road ahead. 

Episode Transcript

Speaker 1 (00:06):
Welcome to the Gordon Asset Management Podcast, a
show for savers, investors andentrepreneurs, helping you to
stay informed, invest wisely andachieve the unimaginable.
Please stay tuned until the endof the podcast for important
information and disclosuresabout our firm.
Now please welcome Glenn Moore,partner and chair of the
Investment Committee for GordonAsset Management, for a brief

(00:27):
market update.

Speaker 2 (00:31):
Hi everybody, this is Glenn Moore.
Thanks for tuning in to today'smarket brief.
As of November 17, 2023, theS&P 500 index is up over 18%.
By comparison, small cap stocksas represented by the Russell
2000 index are only up around3.46% for the year and bonds,

(00:52):
represented by the Bloomberg USAggregate Bond Index, are only
slightly positive for the year,up 0.54% year to date.
Needless to say, 2023 has beenanother challenging year in the
markets.
In fact, this year, just sevenstocks are driving more than 90%
of the total return in the S&P500 and NASDAQ, while the other

(01:12):
493 stocks are collectively down2% on the year.
With regard to portfolios, ourpositioning throughout the year
has been defensive, as we haveseen concerning economic data
that consumer spending, theprimary driver of the US economy
, could be weakening.
We find support for ourperspective in, among other
things, the contraction of banklending growth, which has

(01:34):
indicated a tightening creditmarket.
History has shown that this isoften a precursor to broader
economic challenges.
Furthermore, there has been anotable increase in
delinquencies in consumer debt,particularly in auto loans and
credit cards, primarily amongyounger demographics.
This surge in delinquenciesraises concerns about consumer

(01:55):
financial stress in anenvironment of rising interest
rates, Reflecting on the lostdecade of 2000 to 2010,.
We are reminded of the cyclicalnature of markets and the
criticality of adoptingstrategic positions during
volatile periods.
Decline can be the mostdifficult part of managing the

(02:15):
business cycle, as the markethas a knack for lulling
investors into complacency.
The prelude to the 2008-2009downturn showcased such
challenges, with notable marketsurges followed by steep
declines.
Our current strategy isdeliberately structured to
protect against thesefluctuations.
We're prioritizing allocationsin short-term cash equivalent

(02:37):
assets with robust yields ofapproximately 5% and investing
in liquid alternatives that aredesigned to maintain a minimal
correlation with the stockmarket's movements.
I hope that you found today'supdate valuable.
Should you have any questionsor if you'd like us to review
your portfolio, please do nothesitate to reach out to us
through our website, WealthQBcom.

(02:57):
Thanks for tuning in.

Speaker 1 (03:07):
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investment advisor.
For more information about ourfirm, please visit WealthQBcom.
The information in this podcastis presented for educational
and entertainment purposes onlyand is subject to change without
notice.
Opinions expressed are those ofthe podcast's guests and don't
necessarily reflect those ofGordon Asset Management LLC, its

(03:29):
producers, hosts or guests.
Information presented shouldnot be construed as tax, legal
or investment advice or arecommendation or solicitation
for the sale of any product orstrategy.
Investors are encouraged toseek advice from qualified
professionals to determinewhether any information
presented may be suitable fortheir specific situation.
Investments involve risks.

(03:52):
Neither Gordon Asset ManagementLLC nor its podcast
participants shall be liable forlosses resulting from decisions
based on information orviewpoints presented on this
podcast.