Code Orange Alert! Halloween takes over stores as wildfires take over the U.S.

**Christy Strawser** (0:00)
The day's biggest stories, the people behind the headlines, the conversations you won't hear anywhere else.
I'm Christy Strawser. You're listening to Odyssey's On Deadline. This week, wildfires left Minnesota, Michigan, the East Coast, and more with the worst air quality in the world.
Just going outside was dangerous.
Floods struck Texas. A parasite is making people across the country sick. Ice shot and killed another motorist. Crisis is everywhere. So how are we supposed to react? Here's KCBS in the Bay Area.

**Danny** (0:34)
We are now living in a world with one crisis after another, trade wars, actual wars, climate change, crop failures, etc.
How should we invest our money when the environment is so insecure? For a closer look, Michael Yoshikami, CEO and founder of Destination Wealth Management. Now, Michael, I think just to start this off, how do you interpret the future in light of just in general, very broad uncertainty about the world these days?

**Michael Yoshikami** (1:02)
Well, you know, Danny, it's really a sad thing I'm about to say, but it's kind of the world we live in now, and I don't think it's going to change. I mean, everyone is kind of saying, when will things calm down? And the reality is, we are so connected by media, social media, everybody can react all at the same time, real time basis. So it's going to be continuing to be a very, very uncertain world. Obviously, what's happening in Iran right now is not making things any better. But that's the reality. That's why you have to invest on the assumption craziness will continue.

**Danny** (1:34)
Are there any types of investments that people should not pursue at this point, things that they should be wary of given this moment?

**Michael Yoshikami** (1:41)
Well, I think a lot of it depends on the person, but I think the more risky the assets, the more what we call are stretched valuations, companies whose prices really can't be justified by the amount of profit they're making. These are the companies, particularly when markets are at all-time high, and we have such uncertainty that you have to really be careful about. So look at your portfolio, find out what you think is really highly fluctuating.
Even if it's gone up a lot, that's fluctuation. Maybe it's time to take some profit and just kind of center back a little bit in anticipation of continued volatility.

**Danny** (2:16)
Well, there's never a sure thing, but what are some low-risk, generally good things to be looking at at this point given that there's so much that can be in flux. I mean, I sometimes check my retirement accounts and I'm baffled by the daily fluctuations. What do you think is something that maybe is more slow and steady, it's long-term going to be helpful for you?

**Michael Yoshikami** (2:36)
Well, slow and steady tends to really come down to three categories. The first of all, excluding real estate. The first of all is cash money market, which is not paying a horrible rate of return, three to four percent, granted it's probably breaking even with inflation, but not bad. And then you have bonds, it can go out to five to ten years, I wouldn't go out past ten years. And then you have more dividend paying stocks, stocks that are more mature companies where you can be assured of some sort of income streams.

**Danny** (3:04)
I just want to ask you one more question about, when it comes to when people are deciding where to put their money, what should be going through their mind in this moment of uncertainty above all else?

**Michael Yoshikami** (3:14)
I think what's really important is understanding how much pain you can take on the downside. I mean, the bottom line is, volatility is what is most frightening for people, particularly people moving towards retirement. So I think the big thing that you need to be concerned about is how much downdraft, how much downside can you live with? If your portfolio is set up with more potential downside than you can live with, you might very well make a bad decision at the worst possible time.
So I think that's what people have to be aware of.

**Christy Strawser** (3:47)
Here's a closer look at the natural disasters that are sweeping the US, starting with KRLD in Dallas.

**SPEAKER_4** (3:56)
Governor Abbott is sounding the alarm for those living in southern portions of Texas.

**SPEAKER_5** (4:01)
The governor has already issued a disaster declaration for the state, which activates well over a thousand state personnel from 30 different agencies working to save lives. So far, 75 people have been rescued, and the governor says the good news is that there have been no reported deaths.