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Southern Capital Services TV Interview
What is an Independent Registered Investment Advisor (RIA)?
An RIA is in the business of giving advice.
An independent RIA is not owned by another company or institution.
An RIA has a Fiduciary Responsibility to their clients. They are legally required to put the client’s interest first. This is a higher standard that what is required of brokerage firms, which is the suitability of an investment for an individual client.
An RIA is typically compensated by fees for advice, rather than commissions on buying & selling.
An RIA is regulated by the Securities and Exchange Commission (SEC) or the state in which they operate.
Last month the market had a strong rebound from the June lows, but now we are in the midst of a second leg downward. As of the time of this writing, the market has given back roughly half of its recent gains. Most likely the downward pressure is not over; and, along with that pressure, we are in the most difficult period of the year historically for stocks (September to October). Furthermore, we are still dealing with inflation (currently running around 8%) and the evidence of a looming recession, or at least a significant slowdown in the US economy. Therefore, it would be logical to conclude that we will go back and retest the June lows. However, conventional wisdom is not necessarily a reliable predictor of future outcomes.
What are some other more positive factors to consider?