Wow! The economy is doing some crazy things here as we hopefully wrap up this thing we’re all calling COVID. We’ve got big tech stocks like Amazon and Facebook continuing to rise in value, with no shortage of people still wanting to buy them. At the same time, the dollar is falling, which presents interesting opportunities of a different sort.
This episode of Payne Points of Wealth features our thoughts as fiduciary advisors — from a three-generation perspective — about these issues and more. We’ve got a variety of perspectives for you to consider, so be sure you take the time to listen.
You will want to hear this episode if you are interested in…
- The current growth of big tech [0:33]
- How creative destruction might change the game [3:20]
- Opportunities related to the weakening U.S. Dollar [7:05]
- How to get the best advice from your financial advisor (and how to choose one) [8:30]
- The hidden facts of finance going on behind the scene [14:26]
Big tech: Wow… are you comfortable with prices at these levels?
Bob says he’s getting a nose bleed from the heights the big tech stocks are reaching… and it makes sense on one level. Even 70 to 80-year-olds who have never bought anything online are now buying everything online because of COVID. As a result, you guessed it, the big tech companies behind those purchases are making bank and their stocks continue to rise.
But can it go on forever? Facebook already has 40% of the world’s population using its products (Facebook, Instagram, Whatsapp), so how much more upward room is there? While Bob thinks that leaves 60% of the world as a market for them to go after, Ryan isn’t so sure that’s how to look at it. How about you? Are you buying tech stocks right now? If so, what happened to the old maxim, “Buy low, sell high?” Take the time to listen to this episode and you might find a new perspective to inform your investment decisions.
Tech stocks are doing great. But should you buy them?
One of the things we’ve seen happen as a result of the “stay at home” orders that have been enforced worldwide is the growth of minor tech companies that are taking on the tech giants. TikTok is a great example. This “creative destruction” taking place is going to present all kinds of opportunities for investors that are unrelated to the typical big-name tech companies.
But be careful. What’s trendy and popular isn’t always the best bet long term. You need the right data to make the right investing decisions because your goal should not be to buy what’s popular right now, your goal is to buy what’s going to be popular tomorrow. That requires insight that you may not have. Listen to our conversation to hear how we’d advise that you approach the issue, and learn how you can get your own complimentary financial review from Payne Capital Management.
Who should you choose to help you make investment decisions?
One of the most frequent questions we get here at Payne Capital Management has to do with choosing an investment advisor. How do you make the choice wisely? There are lots of titles and terms out there financial professionals use to describe themselves — wealth managers, advisors, Certified Financial Analysts, fiduciaries — how do you know which is the best fit for you?
Let’s start with where you’re at right now. Who is advising you about your investment decisions today? Is it someone you can trust to have your best interests in mind or someone who’s just out to make a buck off of you? Don’t misunderstand, there’s nothing wrong with financial advisors being paid for what they do, but you need to be careful about who you choose to guide your financial decisions. During the second segment of the show today, listen to our discussion about the different types of advisors and how to go about choosing the right one. Do you need an architect or a builder? The answer might surprise you.
Resources & People Mentioned
- Get your complementary financial review from the Paynes – www.PayneCM.com/FinancialPlan
- Robin Hood Online Trading
- AAII Investor Sentiment Survey
- Warren Buffett of Berkshire Hathaway
Connect With Ryan, Bob, and Chris
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