Payne Points of Wealth

What are you doing with your money that can get in the way of good investing?, Ep 14

November 19, 2020

Today, we're talking about AFTER the election, we’ve talked about the election for the last couple of weeks and we warned you not to let the election get in the way of making good investment decisions. The economy is recovering. And what do you know, the Payne’s were right. The market has been straight up since the election. Well, it's theoretically over, right? We're not 100% sure, but it looks like Biden will be in the White House come January. With elections over and the economy starting to recover the question is... What do you do with your money now? What strategies do you utilize? What should you be looking for? We're also going to talk about other things that can get in the way of good investing and things you need to watch out for in your portfolio to make sure you get on YOUR path to financial independence. Let's hit it. Let's get into it. We've got a great show for you this morning so don’t miss it!

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

  • The economic recovery that’s being missed [2:01]
  • Is it a matter of change or waiting on the rules? [3:42]
  • American’s finding a spend save balance? [5:46]
  • Economist still casting doubt about spending [7:08]
  • The Tipping Point: overconfidence in your ability to manage your portfolio [9:09]
  • The Market is the most humbling place in the Universe! [10:52]
  • The flip side...lack of confidence [13:27]
  • Good investing’s just not sexy [15:48]
  • Growth vs value [17:42]
  • Hidden Facts of Finance [19:47]
  • Cash is trash [22:19]

Mind-blowing recovery and the why behind uncertainty 

Unemployment today is where economists thought it was going to be at the end of next year. We're there a year ahead of schedule. Historically the stock market makes about 10% after net of inflation you're about 6-7%. In the last two weeks, the market went up almost 14%. So that's like two years’ worth of return in two weeks! How’s that for recovery!

Are the political leaders on Capitol Hill smarter than the captains of industry that run our biggest companies? We think companies just sit back and say, okay, what are the roadblocks they're going to create in Washington, DC. They wait until the rules are set so that they can figure out how to maximize profit margins based on their new rules. That's why there's so much uncertainty around elections. It's not a matter of if it’s going to change things. It's a matter of the captains of industry, the companies that you all invest in and that we all own, are waiting to see what the new rules are so they can figure out how to get around them to make the most money for their shareholders and for themselves.

This week on the tipping point

We've talked about this a lot in the past, but your ego and overconfidence can get in the way of a solid financial plan. We've seen many cases that have led to destruction in people's financial life because their ego and their overconfidence in their abilities to manage a portfolio made them blind to real holes or issues within their financial plan. Today, we will break that down so that our listeners don't make the same mistakes with their portfolios. If anyone can see holes in portfolios, it's the three of us so tune in to get the goods!

This week’s hidden facts of finance

Vehicle sales have experienced a V-shape recovery, increasing 36% from the 2nd to 3rd quarter of 2020. Auto manufacturing contributes more jobs than any other industry when you take into account all the parts, and suppliers, aftermarket servicers, replacement parts suppliers, and support services for a major auto plant. In hindsight, it's not surprising that car sales went up. Who wants to ride the subway during a pandemic! 

We've seen more New York license plates in New Jersey than ever before. People are coming out of the cities. They're buying in the suburbs of New Jersey and the subway doesn't get you there! So car sales are increasing. Not a shock in hindsight, but who could have predicted that last March. It’s definitely one of the reasons why the unemployment numbers have come down so much over the course of the last couple of months. Check out this segment for more hidden facts of finance!

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