Jun 4th, 2020 | Money Podcast

WHAT DO WE DO WITH OUR MONEY NOW? The S&P 500 is now up over 38% since the low of March 23rd. Do we go with the flow? What will happen to the economy next? We're "reopening", aren't we? Will the stimulus payments and extended unemployment continue?  Tom's made so many accurate predictions in the past. You can't afford to miss this episode!<--break->

‘You should be nervous!’—legendary money manager slashes stock market exposure from 55% to 25%

Don't Get Too Comfortable: The Next Wave Is Coming

S&P 500 index since March 23, 2020

Which way will the economy and your money go? Tell Tom now: tom@blowmeuptom.com.



Submitted by TallTim on

As long as the Fed keeps pumping money into the market, you'll have a rally.

The moment they taper, the market is going to readjust, rapidly. One of the last auctions were only 70% subscribed, which is unusual.

Be careful. The indexes aren't linked to the Economic nightmare that is unfolding.

Submitted by rjh0084@yahoo.com on


I have been retired for a little over three years and so far so good. My question: when you recommended trimming index funds to their respective minimum
requirements, does that include: vanguard dividend growth fund, vanguard Wellesley fund, or any dividend growth index funds? And how about vanguard retirement income fund vtinx?
I have quite a bit invested in the vtinx.

I always look forward to listening to your programs, I find them entertaining, informative and educational. You provide an especially valuable service in these trying times. Thanks Tom.

Rich Hamernik

Submitted by TomLeykisNNN on

It does include Dividend Growth, Wellesley Income, and index funds such as S&P 500. VTINX is one exception to the rule: don't sell that one off.

This drop won't happen tomorrow, but it will only take one piece of bad news for the market to take a hit such as "the vaccine we've been working on won't be effective" or "150,000 now dead from COVID-19" or the announcement of further layoffs that are coming.

This market rally is on weak footing, and don't let anyone tell you otherwise. Take a look at this new story that just came out two days after our podcast: ‘You should be nervous!’—legendary money manager slashes stock market exposure from 55% to 25% 

Best of luck, Rich!




Submitted by JohnInLA on

As a long time listener, if I understood you correctly, you regretted selling your positions after the 87 crash. Thereafter, you've taken a disciplined approach of dollar cost averaging into the market. So why are you deviating from your discipline, and selling your riskier assets? You may be repeating the same mistake you made in 87. You're making a lot of assumptions about there being a 2nd surge of Covid cases, and about the riots lasting all summer long. What if you're wrong? What happens if we S&P 3000 is the new bottom?

Submitted by JohnFromAustin on

D...U...N... Dun, Professor! Your advice back in December saved me from that last stock market free-fall. So, I'm again taking your advice and bullet-proofing my 401k.

Submitted by metallicagrind44 on

Hey Tom what’s your view about target date funds such as the ones Vanguard offers. Do you suggest I continue to dollar cost average in a fund like that during these uncertain times since I have a long time horizon as far as retirement is concerned?

Submitted by ajthwara on

I'm 100% in Vanguard Federal Money Market fund, and thankful for it. Regained the majority of lost value from that big dip. Waiting for the virus to go away and then slowly transfer back in, or start averaging back in when it's down.