Financial Moves - Dan Hodo

          Holmes program: Coordinator Daria Brown reminds that the Mobius science presentation is 6-7 p.m., Thursday, April 26, at Holmes Elementary School. Club members are welcomed to visit the show.

 

 

          When the stock markets, bonds and other financial instruments fluctuate, timing and moving accounts are everything.

 

          The problem, of course, where and when to make your moves, said Dan Hodo, Inland Northwest regional director for Russell Investments.  He spoke to the April 23 club meeting.

          Hodo had enough charts, graphs and numbers to pave a solid path for any fiscal directions – and enough historical data to inject caution.

 

          History helps, he said, saying the Seattle-based Russell firm started in 1936, not the best of times for Depression-era growth.  But Russell now measures in trillions of dollars, especially handling a wide variety of pension plans.

 

          Hodo’s presentation was called “Volatility Strikes Back,” and showed some of the pitfalls and possibilities of negotiating the fiscal mine fields.  He sampled a few of the challenges:

 

          For example, Hodo showed how 2017 was a remarkably stable year for growth, which continued into this January.  Last year, he said, just eight days showed one percent changes of pluses and minuses, and average stocks grew 20 percent.  In January, the streak continued.

 

           But February began with one of those quarter-one stock “corrections” which can look like potholes in Spokane streets.  “January was great…but since then,” he said, adding that one-percent bumps had 23 days in quarter one. Since the 1930s, Hodo said, usually 55 such bumps happen each year.

 

          In a longer-view, Hodo said, “After the recession, we are on an all-time nine-year stock high, but stocks historically will fall back to the mean.”   The question, of course, is when?

 

          Likewise, bonds also are headed for a correction, he said, adding “a bad stock day (also) is a bad bond day.”

 

          Hodo said, “Where’s the most opportunity?  The U.S. has wiped the floor” with a massive stock run up, but now the growth areas likely will be in emerging and international markets. 

 

          Then the issues become “when” and “where?”

 

          If anyone has definite answers, please let us know.