Wealth and Wisdom Podcast: Episode 62

00:00:00:01 - 00:00:24:21
Cole Leonida
The third quarter is officially behind us, and investors are facing a pretty interesting tension as we head into the final quarter of 2026. On one hand, we've had nearly four years of strong markets. The S&P 500 remained near all time highs, and we're talking with some clients who understandably look at those returns and wonder if they should be taking more risk or putting more money into what has already been working.

00:00:24:23 - 00:00:47:22
Cole Leonida
On the other hand, we're hearing the exact opposite concern from other clients. Inflation is still high. Interest rates have risen significantly. The economy doesn't feel great to a lot of households, and markets are already 12% above their long term trend. So other investors are asking whether the market is simply too hot, or whether or not this is some sort of bubble adding to that tension.

00:00:48:00 - 00:01:09:13
Cole Leonida
Something important is changed beneath the surface over the last 6 to 8 weeks in the stock market. Market participation broadened for much of this year, but since about mid-August, the cap weighted S&P 500 has meaningfully outperformed the equal weighted index. In other words, fewer stocks have really been doing the heavy lifting over the last month and a half.

00:01:09:15 - 00:01:32:07
Cole Leonida
Today, Brian and I are going to unpack what's happening in the economy, what this narrowing market leadership may be telling us, and most importantly, how investors should think about all of this without getting pulled into either fear or greed. Welcome to the episode 62 of the Wealth and Wisdom Podcast, where intentional planning meets eternal perspective. It's October 5th, 2026.

00:01:32:08 - 00:01:52:13
Brian Cochran
Welcome to the episode 62 of the Wealth and Wisdom Podcast, where intentional planning meets eternal perspective. It's October 5th, 2026. We're so glad you're here. I'm Brian Cochran, joined by Cole Leonida out in our Arizona office. And we're part of John Morrison, a financial planning firm serving successful and generous families. Cole, usually we spend some time on the markets and the economy, and then we transition to financial planning topics. Today we have a little different. It's the first Monday of the month.

00:01:52:15 - 00:02:18:12
Speaker 1
So we're going to talk more about sort of just the markets and the economy and leave out the planning topics. But today specifically we're going to flow through macroeconomic data. We're going to talk about the stock market, the bond market, and also spend some time on that topic you mentioned, which is that tension between does this elevated market make some people more aggressive and greedy versus others that might see the rise in the markets and be worried about what's next, kind of the fearful group.

00:02:18:12 - 00:02:34:17
Brian Cochran
So we'll address both head on. So either side of the table that you're on, we're going to be here to talk about that. To kick it off though call will you start with that macroeconomic summary. Just kind of what's happening. Big picture in this economy. Again we can go probably two weeks of just talk about talking about the economy. But give us the big picture overview before we dive into the stock market.

00:02:34:17 - 00:02:51:11
Cole Leonida
Yeah. And I will stay really big picture here, Brian. Instead of telling you all the numbers and all the data points, because we get this data all the time and it's constantly changing. The big overarching theme here is that growth in the US economy remains positive.

00:02:51:16 - 00:03:11:12
Cole Leonida
The labor market is cooling a little bit, though it's really not that bad. We did get an unemployment rate of 4.2%, but there's lots of layers underneath that that we have unpacked in our investment committee over the last couple of weeks, because it really is kind of fascinating what's happening underneath the labor market. What goes into that unemployment rate?

00:03:11:13 - 00:03:32:12
Cole Leonida
How many people are actually in the labor force? That's a big number as well when we're calculating unemployment. And then how does the fed read that? One of our team members here said that fed watching has gotten a lot more fun recently, because everybody's really curious about how they're going to interpret that data because inflation remains stubbornly elevated.

00:03:32:13 - 00:04:01:23
Cole Leonida
Right. We just can't quite kick that. We're we're sneaking up. We might be at 70 months of above target inflation. So 2% to the target by the fed. That's kind of self-directed mandate by them. And we're at 70 consecutive months above that target. That is mind blowing. And while we have seen inflation come down a bit in in recent months, we have reason to believe we're looking at year over year comparables because that's how inflation is really measured.

00:04:01:23 - 00:04:28:04
Cole Leonida
Is year over year rate of change. We have reason to believe that we could be in line for a little bit more inflation or faster inflation, higher inflation over the next couple of months. Prices, you know, can of course drive that. We did get a fed rate hike which is supposed to slow down inflation. But it's important to realize that those rate hikes don't immediately change what's happening in the inflation universe.

00:04:28:10 - 00:04:48:11
Cole Leonida
That has a 3 to 6 month lag historically, before any of that really has any impact on what the inflation numbers are. So that's why the fed kind of gets a bad rap for being late to everything, because they're always data dependent, self-described data dependent. We're going to go where the data leaves will. Unfortunately, all the data that we have is backward looking.

00:04:48:12 - 00:05:08:15
Cole Leonida
And then everything that the fed does has a three to 6 to 9 month lag on anything that any impact that they create. So once the data says they should raise rates, they're already late. So inflation could go up again. And that's got to be something that we have to be prepared for. The bond market is already kind of telling us that it could be going up again, as we're looking at longer dated bonds.

00:05:08:17 - 00:05:29:09
Cole Leonida
We're also looking at we'll talk more about the bond market here in just a little bit. But I want to kind of pause there on the economy, because the macro data can look different than how the economy feels. We've talked about the k shape economy for I don't know how long, Brian. We got people where eggs and orange juice and gas is, is really expensive right now.

00:05:29:09 - 00:05:45:18
Cole Leonida
And it's it's not getting any less expensive in most cases. But then we've also got this third piece where the stock market is independent of the economy. They kind of feed off each other. We can have an economy that's doing one thing and a stock market's doing another thing. Do you want to talk about that a little bit?

00:05:45:21 - 00:06:09:16
Brian Cochran
Yeah. It's one of those mini tensions. You as I'm hearing you call it's really, you know, front of mind to me that the Fed's got this tension between growth and inflation and kind of how do they manage both. And the bond markets struggling with inflation and debt levels. And the consumer is struggling right with this tension of of sort of growing incomes versus higher and higher costs.

00:06:09:16 - 00:06:28:10
Brian Cochran
So all of this is compounding and it's all creating this sense. I think we all have that something needs to give. And I think you introduced that well. But really I think part of what's happening in the stock market is, is just this run we've had, right? It's been, like you said in the intro years of strong markets, this isn't three months or six months of good markets.

00:06:28:10 - 00:06:47:09
Brian Cochran
If you look at the chart here on the screen, we've got really a few years of an upward moving market with a few stops in between. So the biggest stop you see on this chart is of course, the Covid crash. So of course when you shut down the global economy, there will be uncertainty and there will be volatility.

00:06:47:09 - 00:07:08:16
Brian Cochran
On this chart. We see volatility through those orange lines that represent each day's move in the stock market. So it could be up or down. If it's a big move it's going to show up as a spike on this chart. So we had 10% and 12% trading days there. But with all the stimulus thrown at the economy domestically and globally, the market made this incredible rally and really bounced quickly off that bottom.

00:07:08:16 - 00:07:28:16
Brian Cochran
Racing to all time highs. 2022 was another choppy and tough period. When that stimulus started to be pulled back and the fed became more concerned about inflation than stimulating growth. Honestly, a lot of people thought there'd be a recession during that period, and it never came. But we had a lot of choppy days, a lot of three and four and 5% down days during that period.

00:07:28:21 - 00:07:51:19
Brian Cochran
But really since then, since that kind of bottom in late 2022, we've had this incredible rally with very, very short periods of volatility. So you can see there's much less of those three and four and 5% daily moves and even that big move you see kind of on the right there that 9.5% change. That's actually an update. So the biggest volatility came to the upside not on the downside.

00:07:51:22 - 00:08:15:03
Brian Cochran
That was during the tariff tantrum of 2025. The only volatility we've really seen this year was the drop that started with the war in the Middle East when that first launched and people became concerned about the impact on the energy markets and how that could ripple through global economics. But that was offset by a nice rally coming off the low that was associated with corporate profits growing substantially.

00:08:15:03 - 00:08:33:10
Brian Cochran
So you've had this long upward moving market and as you position call, it's kind of put people in this place where they're wondering, are we in a bubble because it's been so good, or is it so good and going to continue to be good that I should drop my lower return, lower risk assets and flood all of my assets towards stocks where the gains have come.

00:08:33:12 - 00:08:49:12
Speaker 1
So it's an interesting several year run. One of the ways we answer that question is that a bubble. And as we look at where is the market relative to its long term average. Cole, you mentioned this in your intro. We're about 12% above that long term average here. We look at that dotted line that cuts to the middle of this chart.

00:08:49:14 - 00:09:07:01
Brian Cochran
And that shows the long term 10% a year stock market trend. That's what stocks might return over the long term or have returned if you include dividends. Now what does a bubble look like? A bubble looks like when we're 50 or even 100% above trend. The last time we saw a huge extreme like that was the tech bubble.

00:09:07:06 - 00:09:29:23
Brian Cochran
So I think late 90s, early 2000 tech bubble, and the market was at that point 100% above its long term average. You see that on the left of this chart. That was an extreme. So by the measurement of relative to trend, the market isn't at an extreme. We're a little bit above trend, but it's also a market. Where is this the time to shift everything towards stocks when it's already above its long term average.

00:09:29:23 - 00:09:48:00
Brian Cochran
And we can feel that we can feel that growth? Maybe not, but it's not the only factor as to how we might dictate as the market fairly valued or ahead of itself. But this is a great indicator. What do we want to do when we're 12% above trend? But we might want to peel off some profits if we know we need cash in the next 12 to 18 months.

00:09:48:02 - 00:10:11:12
Brian Cochran
So, for example, a lot of our clients that have required minimum distributions from their IRA accounts, we might be taking advantage of a 12% above trend market to go ahead and take some of that cash. Now, put it aside and be ready for the 2027 required distribution. That's a great example of responding to an above trend market, but part of why we don't think this above trend market constitutes a bubble is it's a really valid, above trend market.

00:10:11:12 - 00:10:31:03
Brian Cochran
There's good reason for it. And what does that mean? The best reason for stocks to rise is a growth in earnings its earnings in the end that drives stock prices. The higher a corporate profit trend the higher the stock market should be. So if we look at that over the last couple of years, corporate profits or earnings are averaging quite a bit above their long term trend.

00:10:31:05 - 00:10:51:07
Brian Cochran
So the orange line here, that dotted line is the average trend not in stock price but in stock profits. How much are those S&P 500 companies growing their bottom line. And what you see here is we were kind of right at trend around 2024. We started to get a little bit above trend in 2025. And then you see the dots there that represent 26 and 27.

00:10:51:08 - 00:11:15:22
Brian Cochran
Those aren't mistakes. The 2026 earnings growth as of today's investment committee meeting. Just a couple hours ago, when Cole and I met with our crew, that was about 27, almost 28% earnings growth. But to repeat that normal is 7 to 8% annual growth in earnings. And we're at 27 or 28%. So this is substantial growth that really justifies the market being high.

00:11:15:23 - 00:11:34:04
Brian Cochran
So a bubble would mean that the market is up and not for good reason. And therefore it needs to come back down. If these numbers come true, as they're projected to this year, then we're at a market that should maybe even be higher above trend, if anything. And you can see that 2027 forecast is also for additional double digit earnings growth.

00:11:34:06 - 00:11:51:23
Brian Cochran
So it's really a pretty spectacular, unusual period that justifies the market feeling a little bit ahead of itself. And what I see calling you and I talk about this a lot is what the average investor sees in the headlines is the negative economic data. They just see the headline report on jobs or inflation. And some of those numbers haven't been as good.

00:11:52:02 - 00:12:13:21
Brian Cochran
I don't really see earnings hit the headlines that much. So this is the good news part of the market that is sort of underneath everything. But it's what investors really care about. So this justifies a market that seems to be growing very quickly and is encouraging to us as investors, because it means that the companies were buying look like they're still at fair value, even though they may have risen substantially over the last couple of years.

00:12:13:23 - 00:12:20:01
Brian Cochran
Cole, anything you want to add to that theme of above trend but not overvalued?

00:12:20:02 - 00:12:41:23
Cole Leonida
Yeah, Brian, when it comes to being above trend but not overvalued, we've kind of gone through the math in terms of how valuation works. And yes, prices have been going up. So one of the one of the ways that valuation, kind of the old school ways of doing it is just price over earnings price to earnings ratio. So it's p divided by. So we're going back to like high school math class here.

00:12:42:03 - 00:13:06:04
Cole Leonida
Price is getting larger. So the numerator is going up. We're getting higher prices on this. But the denominator the earnings is going up even faster. So we've actually seen while stock prices are going up we're actually seeing you know one of their most notable valuation measures starting to go down. They're getting cheaper as prices go up. On a valuation standpoint that's kind of hard to wrap your head around.

00:13:06:04 - 00:13:39:06
Cole Leonida
But if you get price a big number divided by an even larger number, you get a pretty small output. So the valuation on price to earnings ratio is actually looking more attractive as we continue to push higher. And that has everything to do with these earnings numbers that you just talked about. And the other thing I want to point out, Brian, that I shared in the little intro, is that there's been a divergence over the last 6 to 8 weeks in the market that we really wanted to point out, because it is showing up in different models that we have in different ways.

00:13:39:08 - 00:14:04:11
Cole Leonida
For the first half of the year or so, we were talking about how people were getting the benefit of diversification. We were getting small cap stocks doing great, outperforming the Mag seven, the you know, we weren't proclaiming the the end of the Mag seven, but there was a very notable broadening of the stock market rally. You were getting lots of high performing names on a relative basis.

00:14:04:15 - 00:14:38:12
Cole Leonida
And what we're looking at here is a year to date chart, and I've got three different indexes here. The light blue is the S&P 500. So that's our SPY ETF S and P 500. The dark blue is the equal weighted s and p. So for those that don't know the S&P 500 is market cap weighted. So at any given moment the Magnificent Seven the apples the Amazons the Teslas the Nvidia's those seven names can make up 30 to 35% of the S&P 500 as we know it.

00:14:38:12 - 00:15:06:12
Cole Leonida
So it's weighted by how large the company is. RSP is equal weighted. So each of the 500 companies gets 1/500 of the slice. That's all it is equal weighted. So these perform very differently even though they hold the same companies. And then RTY is the Russell 2000. We're looking at 2000 small companies. So not overlapping with the S&P 500 early in the year the Russell 2000 really took off.

00:15:06:12 - 00:15:29:03
Cole Leonida
We had the the pullback in first into first quarter going into second quarter. And then things really took off. And you can see that the small caps were really doing well. At one point. They were outpacing even the market cap weighted S&P by wide margin here. Then everything kind of peaked here in the middle of August. And then since then you can see the dark blue and the orange.

00:15:29:03 - 00:15:51:20
Cole Leonida
The equal weighted S&P and the small caps have essentially gone straight down. While the S&P 500 is actually nearing all time highs again. So there's been a very stark divergence. I mean, this is this has been pretty dramatic over the last six weeks, as we're seeing the large cap companies really start to pull more than their fair share again.

00:15:51:20 - 00:16:12:00
Cole Leonida
And some of the other participants have fallen off. So while investors were rewarded for diversification early in the year, the last six months have felt a little bit more like de worsification, if you will. And that's not cause for alarm. These kinds of things happen, things can split off, but as you're looking at quarterly statements or something like that, you might go, wait, wait a minute.

00:16:12:01 - 00:16:25:19
Cole Leonida
Why is that model not doing what I think it should, given what Brian and Cole just said about the market, we're trying to share just a little insight on what's happening beneath the surface. And really, there's only about 10 or 15 names that are really pushing markets over the last month or so.

00:16:25:22 - 00:16:43:06
Brian Cochran
Yeah. Another way to think of that, Cole, that I've seen really for a few years now during this long term market rally the last 3 or 4 years, is that the market hasn't gone through any major bear markets, so 20% or more declines. But we have seen rotation. So instead of the whole market going down and everyone look at their statements going, oh no.

00:16:43:08 - 00:17:03:02
Brian Cochran
We've seen the leaders rotate from small to large, from value to growth. We've seen themes come and go. So the market's been very quick to jump from one theme or one sector to the next, but never go through an overall decline. And so you put all this together. What do you do as an investor I think you mentioned one part of it is we always say just remaining diversified because you don't know when this could snap back.

00:17:03:07 - 00:17:21:06
Brian Cochran
Right now the small caps aren't performing, but what the first half of 2026 reminded us is that if you're missing those parts, the small in the mid and the rotation heads that way, that's a problem. And when I mentioned long term trend, that's not a timing indicator. That doesn't mean we're in or out of the market. We still want to participate in the diversified manner.

00:17:21:06 - 00:17:39:04
Brian Cochran
So none of this is is calling for a specific action. If anything the the vision. So cloudy right now, it's hard to say. This is the obvious choice of how you should shift your stock allocation or your portfolio. What is maybe a little more obvious is how much more attractive bonds have become the last month, and we can talk about that.

00:17:39:04 - 00:17:45:12
Brian Cochran
But in the pure stock market, there's no clear trend in place that says this is the way to go in the next six months.

00:17:45:16 - 00:18:03:12
Cole Leonida
Yeah, you're right. And I think that's a good segue, Brian. We have been getting questions. We've been proactively bringing up bonds for some time now. We of course, didn't know that there was going to be this kind of upward move on yields over the last month or so. We of course, you know, anybody's got a guess on where the fed funds rate is going to go.

00:18:03:12 - 00:18:20:16
Cole Leonida
And we don't even play that game. But this could be a really nice time to strategically rebalance away from some of the stocks that have worked. If your own you own some of those big tech names that have done really well and held in there. Buying some bonds right now at these elevated yields could be a good time.

00:18:20:16 - 00:18:42:12
Cole Leonida
It doesn't mean you're making wholesale changes, not like you're rotating all into bonds or anything like that. This is not some big grand scheme. This is just looking at what the market's giving us Brian, and saying, hey, we've got some things that have been really good for about four years in, in stocks, and we've got some things that have been beaten up horribly in the short term.

00:18:42:13 - 00:19:05:06
Cole Leonida
I mean bonds don't typically move this quickly. Yields don't quit typically move this fast. And bond prices don't typically fall like they have. This is a great time for in my mind two things. You could harvest some losses in bonds. If you need some capital losses, you might have losses in your bond portfolio that you're looking at. Or you could just go buy some more bonds.

00:19:05:08 - 00:19:12:20
Cole Leonida
These are some pretty attractive entry points on existing bonds or going buying some new issues at these higher these higher yields. What else would you say to that Brian.

00:19:12:21 - 00:19:31:14
Brian Cochran
No, I think it's very relevant for both short term and long term. So I think, like you said, harvesting some profits in the stock market, if it's time to rebalance and reduce risk, going to the bond market can make sense. Also, moving from cash, if you have money in the bank and online savings or a money market fund, you've been keeping liquid at three, 3.5% for the last year.

00:19:31:16 - 00:19:54:15
Brian Cochran
Well, if you lock that in for two years, right now, you get just under 5% and the Treasury. So you have basically a guarantee of principle for two years for 5%. That's not bad. A one year might be closer to four and a half, you know, but the ten year treasury is now at 5.3. So as a saver, you're getting rewarded now finally for locking money up, so to speak, or buying an asset that's an income producer.

00:19:54:15 - 00:20:14:07
Brian Cochran
And we see in our more high yield portfolios, portfolios that have more risk or maybe some leverage applied in the bond market, you can get seven to even double digit ten, 11% yields in some of these portfolios that just three months ago or yielding much, much less. So while I was worried about the bond market selling off and the fact that prices are down, well, that's the way the bond market works.

00:20:14:07 - 00:20:31:11
Brian Cochran
When the prices go down, that means the yields are going up and it's a better time to enter the bond market. So again, sometimes what we're seeing right now and we talked about those who are greedy and those who are fearful, some of that are leaning more towards the higher growth, more the greed mentality. I don't mean that as a judgmental term, just they're looking for more.

00:20:31:12 - 00:20:49:12
Brian Cochran
They're kind of looking at their bonds that are down for the year and going, okay, I've got bonds that are down, I've got stocks that are up double digits. Why don't I ditch those losers? Those bonds and rush towards stocks were actually we might call for somebody to do the opposite, to actually sell what's been doing well and buy what's now in decline and pick it up at a better price.

00:20:49:14 - 00:21:05:12
Brian Cochran
For those who are fearful the bond market is giving you a reasonable out. We're not saying you should run away from stocks because it's a bubble. I think we've made a good case for why this doesn't feel like a bubble based on traditional metrics and measurements, but if you are looking for less risk right now, maybe a slight tilt down in risk could make sense.

00:21:05:12 - 00:21:24:13
Brian Cochran
Maybe reducing your stock allocation by 5 or 10%. And what a great time to do it. When you can go buy low risk assets at 5 to 6, or even higher percent returns without taking substantial risk to principal. So either way you go, you've got some really good options in front of you. And I think one of those options does involve buying bonds.

00:21:24:15 - 00:21:41:17
Cole Leonida
Yeah. And something else I want to share. A question came up with a client last week Brian about hey when yields move this quickly isn't that a bad thing. Isn't that you know, isn't that sign for you know head for the hills run for cover sometimes. Yes. Sometimes it can be a bad thing when you when yields move quickly.

00:21:41:17 - 00:22:05:01
Cole Leonida
That can be a sign of of problems. But I shared this with a client and I thought it was worth sharing with whoever's watching this. This is the gold. Is the U.S. ten year Treasury yield and the blue is the S&P 500. I just noted a couple spots where yields went up quickly. And then I tried to just note where what the S&P did shortly thereafter.

00:22:05:06 - 00:22:34:09
Cole Leonida
And there's some times where yields spiked in a more meaningful way than we're experiencing now. These are bigger moves. And I would say objectively quick moves in the market went up after this particular move. There's examples all over here if you want to pause the screen and find your own examples. But this was a sharp move up in the market just continued to push higher Sharpe move up market continued to push higher Sharpe move up and right here and the market continued to push higher.

00:22:34:09 - 00:22:53:12
Cole Leonida
There's blips along the way. The markets never a smooth straight line. This is not linear but I'm just trying to provide a little bit of historic context is going back 20 years. So I've cherry picked a couple of spots where where yields have spiked and the market has not reacted negatively to that. Generally, short term yields are raised when things are going well.

00:22:53:12 - 00:23:11:07
Cole Leonida
They're trying to slow things down. Raising interest rates on the short end of the curve is a brake pedal. So it means things are already going well. And like we said, there's a lag to that. So it's not like the market's going to collapse tomorrow because rates go up. And long term has a lot to do with long term inflation expectations.

00:23:11:11 - 00:23:29:21
Cole Leonida
And what investors are going to demand out of yield from bonds in order to buy them in the first place. They want to outpace inflation. So if they think inflation is going to be four, they're going to want something greater than four. If they're going to lock up their money long term in a bond, and therefore bond yields are going to have to push higher.

00:23:29:21 - 00:23:50:09
Cole Leonida
So it doesn't necessarily mean that stocks are going to turn south because yields are going up. In fact history would suggest that it could be the opposite of that. Now there are examples on here. If you posit that rising yields can cause some some turbulence in the market. So I'm not saying that this is a guarantee that things are going to be fine in the stock market.

00:23:50:09 - 00:24:04:14
Cole Leonida
I'm just trying to put that that argument to rest a little bit, or maybe just calm some fears that this little spike, I say little in air quotes, but this little spike on that gold line means that the blue line has to come down. Historically. That's not true.

00:24:04:17 - 00:24:23:18
Brian Cochran
Yeah. I think another way to say that is that the short term moving interest rates can cause short term stock market volatility as well, but doesn't interrupt that long term upward trend. So I think that's key. So got some good themes here Cole I think going back to those extremes of being scared or or greedy don't chase the market just because it's gone up.

00:24:23:20 - 00:24:44:12
Brian Cochran
That doesn't make it the best place to put new money, and it doesn't mean you should stop using the risk management tools and the diverse fires that are in your portfolio. But also don't abandon this market just because it looks expensive. Avoid the extremes. The market can look a little bit expensive and still go up, and the market right now does look maybe a little bit on the expensive side, but doesn't seem to indicate a bubble based on the way we would look at it.

00:24:44:13 - 00:25:04:05
Brian Cochran
A market above trend deserves attention and a second look, but it doesn't seem like an extreme today. And then keep an eye on that breadth conversation. You were saying, Cole, because that could affect your rebalancing. What parts of my portfolio are working or not working this year? Where can I get losses right now to harvest versus gains? I might want to take and pull some of that high profit stuff off the table.

00:25:04:05 - 00:25:21:12
Brian Cochran
Don't assume that your portfolio is all performing the same. If you look underneath the hood and see all the parts, which parts are functioning, which are not, and how does it affect my tax plan as well as my asset allocation? If you're not maintaining that regularly, it's going to start to drift outside of what you intended. And then, like we said, don't give up on the bond market.

00:25:21:12 - 00:25:36:07
Brian Cochran
This is a great time to consider being a bond investor. Depending on your needs, it could be a great time, I should say, whether you need a little more income right now because the yields are higher. You can now generate more cash flow. Whether you like the preservation, whether you want to buy an asset that's in decline rather than one that's been rising.

00:25:36:12 - 00:25:48:04
Brian Cochran
There's a lot of reasons to think about the bond market as you look at risk management and generation, and there's always balance all that with your short term liquidity needs. So anything else you'd say there, Cole kind of pulling this all together for our our viewers?

00:25:48:06 - 00:26:22:07
Cole Leonida
I think we would do a disservice if we didn't tie the biblical theme to all of this and our verse that we always latch on to for the biblical mandate of diversification is Ecclesiastes 11 verse two. And it says, give a portion to seven or even to eight, for you know not what disaster may happen on earth. We have no idea what that next black swan event or that next tweet that makes things go haywire, the next piece of legislation we do have, what do we have about a month, month out from midterms and we really haven't had any meaningful volatility.

00:26:22:08 - 00:26:45:00
Cole Leonida
We don't know what is going to cause that next pullback of ten, 15, 20%. And we certainly don't know when it is going to happen. But we are called to spread out our eggs into different baskets. We're also called to multiply what we have. So don't let fear drive your decision making. And on the flip side, don't let greed drive your decision making either.

00:26:45:03 - 00:27:10:19
Cole Leonida
Let disciplined, principled process drive your investment decisions and make sure that it fits within your overall financial plan. Brian, if it's okay, all in there. We've gone over anyways or about a half hour. Hopefully someone watch to the end. But thank you all for joining us on the Wealth and Wisdom podcast, where intentional planning meets eternal perspective. If you found a conversation helpful, please like the video, subscribe to the channel and share it with someone else who might benefit.

00:27:10:22 - 00:27:36:03
Cole Leonida
We are also on Spotify and Apple Podcast, so make sure that you subscribe on there too for your listening pleasure and for more resources and timely insights, you can always visit John Moore at our insights page. Thank you so much. We look forward to seeing you all again next week. John Moore Associates is a registered investment advisor. Registration with the SEC or a state securities authority does not imply a certain level of skill or training.

The terms trend and long term trend refer to historical market patterns and general tendencies over time. These concepts are used for informational and educational purposes only, and should not be construed as a guarantee of future performance or investment results. Markets may deviate from historical trends for extended periods. All investing involves risk, including the possible loss of principal. Past performance is not indicative of future results.T

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