Payne Points of Wealth

If it’s in the Press, it’s in the Price, Ep 16

December 3, 2020

We basically have the same story over and over again, pundits are concerned about the second wave of the Coronavirus and as we’re recording this, we have a change of regimen of government, and a new president starting in January. What does that mean for the markets? The concern is abounding and there is record cash, yet the market continues to go higher just as we predicted on this podcast weeks ago. So the BIG question is… where do we go now? That's what we're going to dissect on today’s show! Don’t miss it!


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

  • Record highs [1:14]
  • Impossible timing [2:47]
  • Economic data -vs- the news [4:44]
  • Handling a downturn [7:01]
  • The Tipping Point [8:59]
  • Fear around investing in the market [10:33]
  • Too much risk [12:40]
  • Millennials aren’t 20 anymore and they’re playing catch up [14:31]
  • Hidden Facts of Finance [17:03]
  • What creative destruction is around the corner? [18:43]
  • Finding a needle in a haystack [20:42]

Embracing a history that creates wealth

If we know about it— if it's in the press, it's in the price— the market knows about it too, it's not ignoring that. It's the difference between being an informed, educated investor and just waking up every day and making it up as you go. When you look at the historical returns of the market and you look at the history of our economy, it always grows. 

If you make a projection of where the S&P, Dow, Russell 2000 or Ethereum Indexes will be in the next 10 years, we'll tell you one thing we know— it's going to be higher. We don't know when it's going to go higher, but it will be higher. It's just a matter of educating yourself on the history of the market. Understanding how the market is always discounting future revenues and future earnings and looking at volatility differently. People shouldn't be afraid of it, they should be embracing it because that's how you create wealth. Interested in hearing more? Check out the episode to see all the brilliant things we have to share! 

This week on the tipping point: managing risk

Managing risk is one of the most crucial elements of a successful wealth plan. So we thought we’d break down what risk really means to your portfolio. How do you really manage it? Risk is something that's only truly recognized in hindsight. When you think about risk, it's the possibility of something bad happening. No one likes bad things, right? If you're always avoiding something bad then you’re sitting on your hands and inertia causes you to do nothing. But risk does cut both ways so if you're sitting on your hands, in this case, you're sitting in cash. That insidious tax inflation's going to eat away at your purchasing power and you probably won’t be able to retire as early as you’d like. Check out the episode to hear about the flip side of that when you take too much risk!

This week’s hidden facts of finance

Every week Ryan goes out of his way to make a point that investing in the S&P 500 is not a one-stop-shop when it comes to investing. The detail that a lot of investors are missing is that it's a global economy and China is coming on strong. Right now there are 119 homegrown electrical vehicle companies in China. They have 1.4 billion potential customers that might be buying upcoming Chinese cars over Tesla cars. Just like Yahoo fell victim to a better search technology being developed by a little known startup called Google back in 2000, you never know what kind of creative destruction's around the corner that will change everything. For more fun facts be sure to listen to the show! 

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