Financial Freedom Blueprint with Louis Llanes

Wealthnet Investments, LLC, a fiduciary registered investment advisory firm, was founded by Louis B. Llanes. Prior to founding Wealthnet, Louis worked as a senior portfolio manager for the US Bank Private Client Reserve, a quantitative trader for a private fund, and an investment consultant for Kemper Securities.

Louis holds the Chartered Financial Analyst (CFA) and Chartered Market Technician (CMT) designations, as well as an MBA and a BS in Finance from the University of Denver. He wrote Financial Freedom Blueprint to help busy professionals enjoy the retirement they deserve as soon as possible after contributing to The Handbook of Risk.

Episode Highlights Here:

Louis Llanes:

If you looked at the fundamental data that we owe the 10Ks and the 10Qs, the company looks financially sound, it looks like the revenues were growing, and it was very difficult to kind of see every aspect of corruption.

Pierce York:

When you’re doing a technical analysis when you’re managing a portfolio, you can only trust one, which one do you trust, technical or in the fundamentals?

Louis Llanes:

If I can only pick one, I would pick the technicals. Because, in the fundamentals, you could be completely wrong. Let me give you an example. So back when, I don’t know if you remember the MCI Debacle, Enron Debacle, back when all that was happening. If you looked at the fundamental data that we are the 10Ks and the 10Qs, the company looks financially sound, it looks like the revenues were growing, and it was very difficult to kind of see every aspect of corruption. But the price action of Enron was telling you what you need to get the heck out of this thing. So, you know, if I only had to pick one, I would pick the technicals, you can derive strategies that are purely quantitative only using price data. And there are quantitative managers that do that. I don’t say that. That’s how you should do it. But if I could only pick one, that’s what I would do.

Pierce York:

Interesting. So the technicals are more like the actual numbers, whereas the fundamentals are more like the narrative.

Louis Llanes:

Exactly. Well, there are numbers associated with fundamentals like sales, earnings, cash flow, and things like that. But the technicals are more about the price action and more about the supply and demand for the security itself. So whereas the fundamentals are more about, like, how much did they make, and are they growing and things like that. But, the price can move very far away from the fundamentals, as you pointed out with all of the meme stocks,

Pierce York:

Interesting.