mYCharts - December 18, 2019
A Recession-Free Decade with Michael Antonelli
FEATURING MICHAEL ANTONELLI, AKA @BullandBaird
Q: Can you tell us about Baird and what you do there?
A: Baird is a financial services company that serves institutional and private wealth clients, and manages $150 billion in assets. As a Market Strategist, I communicate with our clients about our firm’s perspectives on the markets. On my blog, Bull & Baird, I enjoy focusing on behavioral finance topics in a more light-hearted, conversational way.
Q: How long have you been using YCharts?
A: I added YCharts to my investment research toolset back in the Spring of 2019. I have a couple of tools that are critical to my process for when I visit our advisors, and YCharts is one of the platforms that I tell them they need to be using.
Q: Your chart, showing the percent drawdown of the S&P 500 with US recessions shaded gray, reveals that the 2010s decade is the first on record without a recession, what should investors take away from that?
A: It’s important for investors to understand that the unexpected happens. The US economy has diversified away from manufacturing, and we’ve seen a dramatic rise in the technology sector. The US has several visionary companies that are keeping our economy strong, and consumers have gotten back to being resilient.
Building on why things happen in the market, I believe that price determines our narrative, not the other way around. We as an industry need to do a better job of not inducing panic when the market sells off. That’s why I believe it’s really important to the future of wealth management for advisors to place a focus on educating their clients. It’s impossible to know where the markets are going, but advisors can help their clients understand that there are factors outside of their control, and to limit their focus to factors within their control. We need to fight back our urges to overreact to big market moves.Q: Is there a secret tip or shortcut that you’d like to share with other YCharts users or someone considering trying out the platform?
A: When you’re using charts or data to tell a story, the visual appeal and intuitiveness are really important for me. In the Fundamental Charts tool, you can select to plot “Percent Off High,” which is a phenomenal way to tell a story, especially when volatility is involved. Even Amazon (AMZN) was down 94% in the early 2000s. Imagine if you invested in the IPO and you let the drawdown spook you!
Another feature I love is the Google-like autofill when searching the site for a security or data point. I’ve used other platforms that have their own quirky symbols or verbiage for whatever you’re trying to locate, but on YCharts, I just start typing and I’m able to easily find what I’m looking for.
Q: Knowing that you’re using YCharts to share thoughts on Twitter and on your blog, how would you say our platform helps you communicate with clients and peers?
A: It’s so easy to snap off a chart then add it to a blog or post it on Twitter. I can Tweet a chart directly from inside YCharts, download it as an image, or embed it into my blog, and it’s presentation-ready in seconds.