Payne Points of Wealth

A Portfolio With Deeper Breadth, Ep 17

December 10, 2020

November showed off with one of the best months on record with the Dow, S&P 500, and NASDAQ all up over 10%. In fact, the Dow had its best month since 1987. And speaking of big numbers, Tesla is valued at over $537 billion— as much as Warren Buffet's company Berkshire Hathaway— and is the largest company ever to enter the S&P 500. The question becomes, where do you put your money now as the market continues to go higher with the S&P stuffed like a pinata with Mega Cap companies? Can this sustain through the new year? We're going to break it down for you today. We've got a great episode. Let's check it out.

You will want to hear this episode if you are interested in...

  • Small Caps making a big splash [1:24]
  • What is true diversification? [2:51]
  • Good news in the global economy [5:14]
  • The Tipping Point [7:43]
  • Smart 2020 tax moves [8:16]
  • Giving $300 to charity [11:10]
  • Hidden Facts of Finance [15:39]
  • Stock ownership stats [17:18]
  • Investment equality [19:24]

You can’t win trying to time the Market

With an election at the beginning of the month, all the uncertainty, and with a pandemic, who could have predicted that just like that you'd see stocks go up between 10 and 20%. You just can't predict those things ahead of time, and that’s why we always say you can’t time the market. 

Let's face it, this stock market, any market, the world markets are the most humbling places in the universe. There are smarter people than us-- smarter people than the analysts who are trying to figure it out--all trying to gain something that can't be gained, something that can't be predicted. It's too complex, and lesser men than economists have tried to beat or predict what's unpredictable and what's unknowable. The only real winners are long-term investors with patience, fortitude, and a plan. 

This week on the tipping point

I thought we could discuss some of the financial issues we are addressing for our firm's clients before the end of the year. Not that anybody's going to be unhappy to see 2020 in the books; 2021 can't come too soon enough. Unfortunately, going into the new year means it’s time for taxes. You’ll want to make sure you don't pay more in taxes than necessary. There are a lot of smart moves you can make right now to finish up the year, so be sure to check out the episode to learn more.

This week’s hidden facts of finance

Historically, gold has been the preferred way to hedge against inflation, and the value of gold still dwarfs Bitcoin with above-ground gold reserves worth more than $10 trillion and the Bitcoin is $320 billion; however, gold and Bitcoin aren't great inflation hedges. The best inflation hedge in history has been good old equities. Stocks that pay dividends because dividends are increased, and that increases the value of your investment against the cost of living. We're not talking about Tesla here, for the record, we're talking about a diversified portfolio of stocks to pay dividends. Dividends are the key.

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