00:00 Speaker A
We've got Tyler Elgar, who is the Gradient Investments portfolio manager. Great to have you here with us. So, how do you recommend that investors stay consistent right now?
00:13 Tyler Elgar
Yeah, look, there's a lot of uncertainties, and we, your guest talked about in the last, the last segment as well, there's just nobody knows what President Trump and his administration are going to be doing with tariffs. We woke up this morning to news of the potential 50% tariff on the EU block. We don't know, and so there's a lot of uncertainties investors start to get concerned, right? Investing is emotional. And so we get questions quite a bit during these times of, should I go to cash? Should I not invest my money right now? What should I be doing? And our theme is always stay consistent with your investments, whether you're doing a weekly, monthly, quarterly contribution, continue that investment pattern because over time, what's more important is time in the market versus timing the market. And even if you do go to cash, trying to reinvest that cash at the right time can be a very challenging thing to do. Most professionals can't even do that. So remaining consistent to your investment pattern and not worrying about the uncertainties, because over time, those uncertainties start to go away, or we get new uncertainties that we start to focus on. So remaining consistent to that plan is what's most important.
02:04 Speaker A
And investing is absolutely emotional, but at the same time, because you have so many people are saying, you know, it's my money and I want it safe, or I want it to grow, but in a time of the uncertainty or the lack of clarity on some of the trade policy, where are the safety areas, the safe havens that investors can perhaps at least in the interim find some comfort in?
02:44 Tyler Elgar
Well, if you asked me that a couple years ago, I'd say bonds, but bonds have been very, very volatile. We saw how 2022 was. We've seen the recent news on the 20-year treasury auction. Uh, 17% of dealers had to take it, and so we saw that concern over US debt, the deficit. And so we've seen more volatility this year than we typically see in most years for bonds. But I would still say staying on that shorter end of the yield curve if you want to have some of that safety, whether that's, you know, the three, six month treasuries, whether that's even going out to the two year, right, limiting that duration risk on the bonds, I think, is important. Also, when you start talking about shorter-term investments in bonds, we start to think about the Federal Reserve and their actions. Market's pricing in two cuts this year, so you could even get some potential price appreciation there if the Federal Reserve does stick to that two rate cuts for this year. So, I think if you want to quote unquote hide out, I think that's really where you want to go is that shorter end of the curve for treasuries and any corporate bonds as well.
