Three Forces That Determine Everything, Ep 41

What's up! It's episode 41 Payne Points of Wealth. As always, a lot is going on right now. We're starting to see inflationary pressures cool off a little bit. Tech stocks on the move again. Is it time to adjust your portfolio? Is inflation really transitory? The Paynes are going to break down the three major forces that are driving everything economically right now, everything in your portfolio that you need to know about. And on the tipping point today, we're going to talk about doing research. There's a lot of good ways and bad ways you can educate yourself with all the information out there. We're going to show you how to dissect the information, pick out good information versus bad financial information. So you can make some better decisions.

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

• Force #1: Labor shortage & irreversible wage increases [1:28]
• Force #2: The weaker dollar [4:28]
• Force #3: Supply chain pressure [8:00]
• The Tipping Point [12:07]
• Bad information from talking heads on tv [12:36]
• The most dangerous thing to your personal and financial health [15:01]
• A good investment strategy allows you to ignore the noise [18:38]
• Hidden Facts of Finance [23:08]
• A thank you from the Paynes [26:01]

Labor inflation and weak dollars

Business owners are complaining about things becoming more expensive and that they can't get anybody to work. And that people that are coming to work are demanding higher pay. That's the big underpinning issue here when you talk about inflationary pressure. Lumber costs are coming down now, but they just tripled, it's not going to triple again. The longer-term stickler when it comes to inflation is labor costs. When you have to pay your employees more, you can't just say, you know what, I know I gave you a raise, but now I'm going to lower your income. It's very hard to reverse that trend.

The king dollar seems to have fallen off the throne. It's been going down now for almost 12 months. The dollar has been weak since last March when all the stimulus started. That's how it works, right? If the government keeps printing more money, it's called dilution. It's a simple concept where the more dollars you print, the less valuable they are. Last time I looked the government's looking to print another $6 trillion or so over the course of the next year. So that's very bad for the dollar. 

The third leg of this stool is supply chain pressure. Check out the episode to hear more about that!

This week on the tipping point: Good and bad ways to educate yourself about finances

We all want to feel informed about our options when it comes to making decisions about our finances. So we thought we could discuss some of the good and bad ways we try to educate ourselves when it comes to our finances and the best way that we can inform ourselves to make sure we're always making the best decisions. Unfortunately, most of the bad financial information that our clients talk about comes from watching tv and the internet.

A good investment strategy— like the ones we build— is built so that you can ignore all the noise. You have to build a strategy that drowns out all the current opinions because good investing is not about what's happened currently. It's what's going to transpire over the next couple of decades. 

This week’s hidden facts of finance

The total number of internet connections globally will increase from 0.76 billion today to 3.6 billion by 2025. Hyper-connectivity impacts other unstoppable trends, including the rise of Asia. Many millions of people in Asia will gain internet access for the first time transforming their consumer behavior. You've got one of the largest increasing populations in the world getting connected to the best shopping wall in the world. I think being an investment in emerging markets is going to help in the future here guys.

Resources & People Mentioned

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