In This Video:
A once-in-a-lifetime market signal just flashed red, and Fred Hubler, CEO and Chief Wealth Strategist of Creative Capital Wealth Management Group, sits down with TD Ameritrade Network to unpack what it means for investors right now.
- Historic rarity: 2022 is one of only five years since 1931 in which the S&P 500 and 10-year bonds fell together, and the only one where both dropped more than 10%, with Bloomberg forecasting a 100% chance of recession in the next 12 months.
- Mixed earnings season: energy and banking are performing well, while consumer discretionary and technology (including Apple and Meta) are revising forward estimates downward.
- Recency bias warning: investors assume markets always snap back quickly, but Hubler notes history shows they can stay flat or down for decades.
- Bond fund risk: longtime bond investors, particularly older generations, are facing unfamiliar territory as rising rates push bond funds down for the first time in their investing lives.
- Defensive positioning: Hubler’s firm has shifted toward hard assets, cash-flowing investments, and illiquid alternatives like institutional real estate for accredited investors.
Watch the full conversation above for Hubler’s complete breakdown of what these market signals could mean for your investment strategy.