Skip to main content
Payne Points of Wealth Podcast

Market correction. No, it’s not different this time. Ep#138

By November 3, 2023No Comments

Don’t miss the melt-up

Conventional wisdom in the financial media right now is to sit in short-term cash positions in a 5% money market or treasury to hide from the uncertainty in the market. We believe it’s a short-sighted approach because historically new highs are inevitable.

Investor sentiment is low due to current market volatility. People seem to forget that every time we have a dip, we have a new upswing.

Meanwhile, the fundamentals continue to be great:

  • A strong labor market
  • Inflation coming down
  • Earnings stronger than expected
  • Strong GDP number

We're having a correction.. we've been here before. But I guarantee every investor is saying "yeah, but it's different this time"

Bob Payne

I have a great memory.. I remember when the market pulled back in 2008, and things got better. I remember when the market pulled back in a global health crisis in 2020, and things got better..

Chris Payne

You never want to miss the upside in the market. That should be Rule #1. And that's what investors forget..

Ryan Payne

Focus on dividends and the long game

Stocks are increasing cash flow investments. Dividends increase over time. The risk is that your money market funds are going to go down in the next year, whereas dividend yields have been rising consecutively almost every year during our lifetime. You’ve got to play the long game when it comes to investing.

The Tipping Point

Making better decisions

once you’ve saved for retirement

Here at Payne Capital Management, something we find is you’ve done a great job of saving your money, but maybe not the best job of making decisions about that money once it’s saved to make sure that you’re optimizing for financial independence or retirement.

Some of the poor decisions we see include:

  • Too much in cash

  • Too much in mega-cap stocks

  • Too much risk

  • Investing with your emotions

  • Having a portfolio that’s a ticking tax time bomb

Make lemonade out of lemons. Do some tax swaps.. take some losses. Because you're going to have gains. New highs are inevitable.

Bob Payne

A year like this year where markets are down.. you can convert some of these lower priced shares into a tax-free Roth IRA..

Ryan Payne

Hidden Facts of Finance

The Nikkei Asia reported, that by 2035, an estimated 400 million people in China will be aged 60 and over, representing 30% of the population, according to the government’s own projections.

Taylor Swift’s Eras tour has generated as much money as the economies of small countries. And one of the biggest years of her nearly two-decade career, she’s entered even more rarefied status. She’s a billionaire now. The singer’s 53 US concerts this year added 4.3 billion to the country’s gross domestic product, according to estimates from Bloomberg Economics.

Sign Up to Never Miss an Episode!

Get Payne Points of Wealth directly to your inbox each week.