We’re In An Economic Boom, No Matter What Strategists And Economic Gurus Tell You, Ep #76

What's up! It's episode 76 of Payne Points of Wealth and we are wondering if every strategist and economist will be wrong. Probably! Today we're going to talk about what the sentiment is on Wall Street and what investors are thinking right now. Hint, hint...they're very negative on the economy and the stock market. We're going to give you our contrarian view of what we think is going to happen over the course of the next couple of months, especially with interest rates going up now that the FED is officially raising interest rates for the first time since 2018. 

The conflict in Ukraine continues to go on. 

We're going to unpack a lot for you today and talk about some old-school wisdom. Bob's going to go back to the 70s’ at Merrill Lynch (when he had long hair and listened to Led Zeppelin) and tell you exactly what you need to think about philosophically when it comes to the markets. Let's hop to it. We got a great show today. 

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

• Geopolitical conflict is not as damaging to the market as you’d think [1:23]
• We are in an economic boom [3:19]
• The psychological aspect of inflation [6:54]
• The Tipping Point [9:26]
• Markets return to the mean [10:31]
• The public buys the most at the top and the least at the bottom [13:31]
• Fear and greed are stronger than long-term resolve [16:19]
• Bull markets are much more fun than bear markets [18:10]
• Hidden Facts of Finance [19:58]

Abundant Americas -vs- Negative Networks

The one thing that we've been stating every week is that we're in an economic boom, no matter what those strategists and economic gurus tell you. At the end of the day, we have an abundance of jobs, and wages are going higher. People are NOT dialing back their spending. Even with oil prices skyrocketing it's not going to stop them from spending, especially now that the economy is full-blown reopened. No one cares about COVID anymore or at least not enough to stop them from living life. We've learned to live with it. These are all big, big drivers for economic growth.

We should write an article every week, "If things are so good, why do I feel so awful?" Because after you look at the media or watch the news you're like, oh my gosh, things are so bad. But meanwhile, the US house's net worth is 150 trillion with a T. We're the wealthiest we've ever been in the history of the country. 

This week on the tipping point: Bob Farrell’s rules of investing

Here’s a list of Bob Farrell’s 10 rules that are still true today. Check out the episode to hear a breakdown of our favorite ones!

1. Markets tend to return to the mean over time
2. Excesses in one direction will lead to an opposite excess in the other direction
3. There are no new eras — excesses are never permanent
4. Exponential rapidly rising or falling markets usually go further than you think, but they do not correct by going sideways
5. The public buys the most at the top and the least at the bottom
6. Fear and greed are stronger than long-term resolve
7. Markets are strongest when they are broad and weakest when they narrow to a handful of blue-chip names
8. Bear markets have three stages — sharp down, reflexive rebound, and a drawn-out fundamental downtrend
9. When all the experts and forecasts agree — something else is going to happen
10. Bull markets are more fun than bear markets

This week’s hidden facts of finance

• John Templeton following Bob-isms he didn’t even know about!
• Ukraine raised 63 million in crypto donations and people were scammed out of just as much. How’s that for secure currency?
• The metal nickel spiked to 100,000 per metric ton on the London metal exchange
• The asset manager’s $140 billion Pimco Income Fund held $1.14 billion worth of Russian government international bonds as of the end of 2021. 

Resources & People Mentioned

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