Some Like It HOT...We Prefer Profitable!, Ep #33

What's up! It's episode 33 of Payne Points of Wealth and the economy right now is hot. Make no mistake, we've talked about it week after week and it's happening. Unemployment is coming down way faster than expected. Consumers are buying more goods than expected and supply chains are on fire! 

Today we're going to talk about exactly what you need to be doing in your portfolio, what you need to anticipate, and what this means for the global economy? On our Tipping Point segment, we're going to talk about conflicts of interest. Believe it or not Wall Street is not working for you. We're going to dig into all the dirty little secrets on Wall Street and the financial services industry that you need to be aware of so that you can make better decisions with your finances.

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

• Everything is higher than expected! [1:18]
• The Market is a slave to earnings [3:59]
• A hot tip on Bitcoin [6:11]
• The Tipping Point [8:41]
• The cost of protection [10:48]
• Structured products are only beneficial for the entity that’s doing the structuring [14:18]
• Hidden Facts of Finance [18:12]

Wall Street strategist’s estimates are driving record highs in the market

The market is a slave to companies’ earnings and companies are going to make a lot of money over the next two years. As a result, you're seeing strategists on Wall Street increasing their estimates of how high those profits or earnings are going to be. Every time they do that it ratchets up the price in the market so we're seeing new highs every week. The S&P 500 reached over $4,000 for the first time in history and we're closing in on $34,000 on the Dow.

It seems that right now the bet is not on the future of profits for these big disruptive tech companies like Spotify, Zoom, or Tesla. It's more on the companies that are profitable now, those old-school stocks like banks and oil. That's been the theme here on our show week after week. It's about profits. All about profits! When you start thinking about your portfolio and you think about being strategic you have to think about what has the most benefits and what the losers are. The losers are going to be all these companies that have no profits.

This week on the tipping point: Conflicts of interest

The financial services world is riddled with conflicts of interest. We worked for one of the largest firms on Wall Street and spent a good amount of time just protecting our clients from the firm. It’s one of the reasons we started our firm Payne Points of Wealth. Check out the episode today where we will discuss some of the situations where the financial services industry might not be working in your best interest. 

The first red flag about the financial services industry is that our government has been trying to protect the consumer for a good 20 years now bypassing what they call the fiduciary rule. That's where the advisor or investment firm has to put YOU, the consumer, the investor, the client’s interest first. But guess what guys? They've been fighting it tooth and nail, they don't want to put your interests first. They want to make as much money as they can. 

This week’s hidden facts of finance

The real net public infrastructure investment has been cut by more than half since the early 2000s. The new proposed $2.3 trillion infrastructure plan is equal to all of the revenue generated by Apple over the past 18 years combined, including that from every iPhone, iPad, and iPod ever sold! That's a lot of stimulus into the economy. Just think if the federal government had gotten into the smartphone and tablet business 18 years ago we probably wouldn't have anything to worry about, but the problem is taxes will probably go up in the future because we have to pay for this infrastructure somehow. Eventually, taxes are coming, but also the economic boom. So you get two sides of the coin there.

Resources & People Mentioned

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