Loreen Gilbert on the Markets (Radio)

people have had a favorite missing out. But you know, right now, it's just wrapping up the rest of this year and understanding where we are and looking forward to next year. As far as the markets are concerned, and it's been a rough year for investors definitely, in both fixed income and inequities, and many investors, you know, really don't know what to do. But if we look forward and we look ahead, we do see some opportunities in

the market. Specifically, we like a lot of things in fixed income in the shorter term and in equities where we like once again emerging markets as the dollar kind of rolls over in weekends. Yes, I'm actually larn that, you know, as your markets is a broad brush, but you know where most specifically, I mean, would it be the likes of China and the China's of this world, perhaps there's a lot of people have been gaining more

faith in India. What's the deal with you? Yeah, no, we're actually looking at Latin America is one area of interest as well as as well as the Pacific rim um for emerging markets. So, you know, it's been hit hard this year with the dollar being as strong as it has and and but now that we see that that, we do think the dollar is going to weekend once again. I think it's time to be looking at all of an international again. And then in the developed areas, we

love Japan and the UK. You know, it's kind of interesting when we watch the data in the US economy and then what we can learn about the global economy as a result. On the one hand, you had consumer confidence today um jumping to a very high level, highest we've seen in eight months. On the other hand, you know home sales existing US home sales weekend for like the tenth month, and it's a record retreat, right, so well, the interesting part about the consumer numbers were the expectations

that were the first time above eighty this year. They rose to eighty two point four, which was a remarkable improvement, and that was directly a result of you know, gas prices going down, uh, inflation starting to moderate, so that the consumer is feeling a little bit better about things. But just like you said, with rates as high as they are interest rates with housing, we also saw a number of thirty two percent of homes were being purchased with all cash, So people who are mining homes are

looking at ways to avoid those high interest rates. But we haven't seen the full effect of higher interest rates yet, and that will be the lag that goes into effect next year. What we heard from consumers is they're thinking about not buying the big goods that we saw in the past, but more focused on services and vacations and those kinds of things, and not really buying those big ticket items like cars and washers and dryers and things and and and and stocks and cars, washers and drivers

and stocks. Not not buying you think, and is that likely? Well, well, you know, I don't. I think that the consumer has actually still been investing in the market. So did you say stocks, Yeah, it sucks, Yeah, I think it was. It kind of just a playful question that really basically talked about obviously markets and people buying, uh buying or

selling equities. But I'm sure my colleague was shot as a question for you, I wanted to have have a think about this arena because you know, we're looking at SMP five under targets and web people were positioning themselves and analyss overall going underweight cons You miss staples. Doesn't that surprise you? If we're heading into a recession, it does a prize. It is surprising because we know everybody's talking about a recession, so the typical recession plan would

be consumer staples. Right, But um, I think just right now, what we've seen, especially this year is within each sector and category, there's been a huge divergence as far as equity returns. So not writing off all of consumer staples, but looking carefully to where you're investing, and I would say that in every sector that there is, there's been this huge divergence and returns with the insectors. So it's really looking within the sectors to say where are the opportunities.

And like you said, it is somewhat confusing that people would not look to consumer staples because if we think we're going to go into recession, then yeah, yeah, Lorene, I'm kind of curious. We'll go ahead and finish your thought. Yeah, so an area that we like quite a bit would be on the industrial side. So we think, you know, it's more of a value place still versus a growth play in the market, and we do see opportunities in industrial.

I'm trying to think about how the economy and society look after we get through this, and I'm just wondering whether or not you've had a chance to think about this. Are we moving to yet another new kind of new normal, one with higher rates, more inflation, and workers um that have a lot more flexible hours and approach to our Yeah, well, on your question, what I've been thinking a lot about is that when whenever we come out of a bear market, there's usually new leaders that lead us out and new

leaders that continue. So many investors are going to get stuck in some of those older names that did really well in the past cycle that may not be the leaders going in this next cycle. And what I see

is I think AI is finally coming of age. We've been talking about it for thirty years of how AI going to really be implemented, and it finally is the implement And like you said about workers, one of the things that companies are looking at is how can they use AI to decrease the amount of labor that they need, and with changing labor force and not as many people

working and all of those things. So you think AI is of age and looking at those companies that are you need to see different companies purchasing other AI companies and implementing them into their company and then what can that do to our society to help us move forward? But what are you actually seeing that in terms of

that space? Then, I mean you're u seeing real value propositions. Well, yeah, I mean you look at what's uh, you know, Google's definitely outfits working on this implementing AI, at Microsoft buying open AI. And so we see these different companies that are purchasing other companies or really thinking through AI, um Rockwell automation. Looking at that all of these kinds of companies and what is that going to mean for our

society and how can they be leaders going forward? And here's a little bit of a quirky question as well. A lot of these big tech companies have become almost like staples. Would you expect them to start paying dividends and higher dividends? I think dividends. We've seen many companies move towards dividends, definitely as a way to pay back investors, and and and investors right now have have been looking for that as income was lower in the fixed income space,

having some kind of income from equity perspective. I think that that trend will continue. I definitely think so. I think investors are looking for income and companies I think will be looking at paying more dividends. All right, Loreen, thanks very much for joining us. Loreen Gilbert, CEO at Wealthwise Financial on the line from Laguna Beach. She probably was out on the lanai or out on the beach picking her stocks, getting ready for our interview.