Market reaction to higher rates
Last week the market reacted to a spike in the 10-year treasury to 4.8% that led to an 8% sell-off in the S&P 500. But market corrections are normal with most years seeing a 10% correction.
If you look at the fundamentals:
- The economy is strong
- We have plenty of jobs
- GDP numbers are going to be really good
- Earnings growth next year should be 10-11%
”.. in July it was 3.8%.. so it was just the velocity of the increase that kind of shocked investors.
Bob Payne
Inflation is the biggest risk in everybody’s financial plan
It’s so tempting to just put all your money into a three-month T-bill at 5.5% or a six-month bill, but the historical rate of return on equities is double. Most of us need an equity-like return to overcome inflation to achieve our financial goals.
”Investing is a long-range view.. put down your reading glasses and pick up your binoculars.
Chris Payne
”..you really have to focus on that long-term picture, keep your eye on the prize.
Ryan Payne
The Tipping Point
Estate Planning Questions
With our guest Marianna Moliver
In this episode we talk with Marianna Moliver, she is a super lawyer as voted by Super Lawyers magazine in the areas of estate planning and probate. Marianna has her own practice, Moliver Law and she has a lot of great insights and experience in the world of estate planning. It’s a topic we get a lot of questions about.
Estate planning is something that no one likes to do, but we know it’s extremely important. Listen to this episode for the answers to questions like:
- What’s the biggest mistake people make when it comes to estate planning?
- Can’t I just go online for $300 to set up a will?
- Why should I do an estate plan now when the government keeps changing the rules?
- How often should someone have their estate plan reviewed?
- Should you have your estate plan updated if you’re no longer a resident of New York or New Jersey and are now a resident of Florida, Texas, or some other low-tax state or no-tax state?
- What are the basic documents everyone needs to have?
- Should you put your primary residence in an irrevocable living trust?
”So I think the biggest mistake is actually just avoiding it. And, you know, that means go to a lawyer, sit down, discuss it. Whatever the goals or concerns may be, they can be addressed.
Marianna Moliver
Hidden Facts of Finance
Crypto fatigue has settled in, prices have flatlined, trading volume has collapsed, and hardly anyone outside the industry seems to care about crypto anymore. Centralized exchanges like Coinbase and Binance are handling around 30 billion a day, less than half their levels a year ago. About 15% of the roughly 200 billion daily trading volume when Bitcoin is flying high back in 2021.
You may not realize it, but this country has the world’s largest oil reserves, bigger than Saudi Arabia with some 17.5% of the world’s supply. That’s 303 billion barrels. It’s Venezuela.
