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Payne Points of Wealth Podcast

Volatility & Uncertainty are your friends… dressed in a mask trying to scare you to death, Ep#7

By October 1, 2020 October 13th, 2020 No Comments

The real story this week is that election uncertainty is upon us! You’re hearing more and more news about how the election will affect the markets. Contributing factors causing volatility are the recent death of a supreme court justice, tension in the political realm, riots going on in different cities, all the while we are STILL in the middle of a pandemic. What else could go wrong here? The big question on many investor’s minds this week is should I… Stay in cash? Get invested? If I am invested, is it time to go to cash and just wait for this thing to blow over? Listen to the episode to get our take on the answers to these questions!

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

  • Where is the worst place to be right now? [1:15]
  • When can you expect to get good prices? [4:02]
  • Betting on the reopening of the economy. [5:59]
  • What would Warren do? [6:43]
  • The tipping point: How to recover from recession missteps. [8:03]
  • Have you been ignoring your finances? [10:01]
  • What kind of fees can you lower in your portfolio? [11:38]
  • Getting your financial physical. [14:54]
  • Hidden facts of finance: Russian vaccines, dividend yields, & bonds, oh my! [16:25]

Uncertainty creates a great buying opportunity

You don’t get good prices when there’s a lot of certainty out there. When people are feeling good about the markets is when the markets are sky-high. It’s when people are jittery that you get those low prices. That’s when you get great discounts in the market, creating great buying opportunities. As the saying goes, you can’t get good prices without bad news. And that’s certainly what’s happening right now.

This is really the bane of the investors’ existence, having to embrace uncertainty in the market. Historically when things are the most uncertain you’ll find the best buying opportunity. Yet, we want to wait for clarity, for the sky to part, and the sun to come out so we feel good. Of course, that’s always the worst time to invest because good news comes with bad prices. Take advantage of these dips because you don’t get them that often.

Recovering from recession missteps on this week’s tipping point

Today we will talk about some of the recession missteps made and how to recover from them. What do you have to do now to get back on track and back on your path to financial independence? We think one misstep people made was selling out of the market when it went down, and now they’re sitting in cash and have no reentry plan. What do you do next?

The way to look at that is there’s not just one market. There are multiple markets around the world. So there’s plenty of opportunities to get in at a low cost. The thing is you have to make the conscious decision to get back in and then stay in. The dilemma is when you get out at 100% you’re making a bet. If you get all out then you need to make another 100% bet to get back in. And that’s what we call all or none. And an all or none position is always a terrible place to be when you’re an investor. Listen to the episode to hear how you should diversify when you are buying back in.

Stock dividends are the place to be on this week’s hidden facts of finance

The Russian vaccine called Sputnik 5 has only gone through phases one and two and it’s been sent to Venezuela and Nicaragua for phase three trials on people who aren’t Russians. That sounds safe!

Talk about dividend yields! The common shares of ATT now yield almost 7%. That’s amazing and about twice what the telecoms long term bonds pay. JPMorgan’s developed market global government bond index currently yields 1.3%, but the longterm 44-year average is more like 6.4%. It seems that stock yields are better than bond yields these days. You wouldn’t want to sit in cash getting 1% and it doesn’t sound like developing market yields are much better. Stock dividends are the place to be.

See if you qualify for a complimentary financial review from the Paynes

 

Connect With Ryan, Bob, and Chris

Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify

Volatility & Uncertainty are your friends… dressed in a mask trying to scare you to death, Ep 07

The real story this week is that election uncertainty is upon us! You’re hearing more and more news about how the election will affect the markets. Contributing factors causing volatility are the recent death of a supreme court justice, tension in the political realm, riots going on in different cities, all the while we are STILL in the middle of a pandemic. What else could go wrong here? The big question on many investor’s minds this week is should I… Stay in cash? Get invested? If I am invested, is it time to go to cash and just wait for this thing to blow over? Listen to the episode to get our take on the answers to these questions!

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

  • Where is the worst place to be right now? [1:15]
  • When can you expect to get good prices? [4:02]
  • Betting on the reopening of the economy. [5:59]
  • What would Warren do? [6:43]
  • The tipping point: How to recover from recession missteps. [8:03]
  • Have you been ignoring your finances? [10:01]
  • What kind of fees can you lower in your portfolio? [11:38]
  • Getting your financial physical. [14:54]
  • Hidden facts of finance: Russian vaccines, dividend yields, & bonds, oh my! [16:25]

Uncertainty creates a great buying opportunity

You don’t get good prices when there’s a lot of certainty out there. When people are feeling good about the markets is when the markets are sky-high. It’s when people are jittery that you get those low prices. That’s when you get great discounts in the market, creating great buying opportunities. As the saying goes, you can’t get good prices without bad news. And that’s certainly what’s happening right now.

This is really the bane of the investors’ existence, having to embrace uncertainty in the market. Historically when things are the most uncertain you’ll find the best buying opportunity. Yet, we want to wait for clarity, for the sky to part, and the sun to come out so we feel good. Of course, that’s always the worst time to invest because good news comes with bad prices. Take advantage of these dips because you don’t get them that often.

Recovering from recession missteps on this week’s tipping point

Today we will talk about some of the recession missteps made and how to recover from them. What do you have to do now to get back on track and back on your path to financial independence? We think one misstep people made was selling out of the market when it went down, and now they’re sitting in cash and have no reentry plan. What do you do next?

The way to look at that is there’s not just one market. There are multiple markets around the world. So there’s plenty of opportunities to get in at a low cost. The thing is you have to make the conscious decision to get back in and then stay in. The dilemma is when you get out at 100% you’re making a bet. If you get all out then you need to make another 100% bet to get back in. And that’s what we call all or none. And an all or none position is always a terrible place to be when you’re an investor. Listen to the episode to hear how you should diversify when you are buying back in.

Stock dividends are the place to be on this week’s hidden facts of finance

The Russian vaccine called Sputnik 5 has only gone through phases one and two and it’s been sent to Venezuela and Nicaragua for phase three trials on people who aren’t Russians. That sounds safe!

Talk about dividend yields! The common shares of ATT now yield almost 7%. That’s amazing and about twice what the telecoms long term bonds pay. JPMorgan’s developed market global government bond index currently yields 1.3%, but the longterm 44-year average is more like 6.4%. It seems that stock yields are better than bond yields these days. You wouldn’t want to sit in cash getting 1% and it doesn’t sound like developing market yields are much better. Stock dividends are the place to be.

See if you qualify for a complimentary financial review from the Paynes

 

Connect With Ryan, Bob, and Chris

Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify