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Payne Points of Wealth Podcast

Don’t Invest with Your Emotions Ep#140

By November 17, 2023No Comments

10% gain in just 2 weeks

It’s amazing how quickly these markets can move. In three months, from July to the end of October, markets went down 10%. Then, in just two weeks, markets gained everything we lost. How do you time that?

How do you time that? How do you trade that? You can't.

Ryan Payne

Buy high, sell low?

Retail investors sell more at the lowest prices and buy more at the highest prices. They’re watching the market and when it’s going up FOMO kicks in and they want to buy.

..FOMO is not investing, it’s gambling. You've got to control your emotions.

Bob Payne

.. these downtimes are more painful just simply because we're not used to it.

Chris Payne

Have investors missed the boat on long-term bonds?

Investors in a high tax bracket could have gotten into a tax-free portfolio at around 7%, but now yields have come down a bit. The market is pricing in rate cuts for next year. There’s $6 trillion on the sidelines and we’re seeing a lot of paralysis by analysis.

It's just so emotional. And that's why it's so hard to be a good investor.

Ryan Payne

The Tipping Point

How ego can ruin your financial independence plan

Today, we go over some of the ways overconfidence and ego can ruin your financial independence plan – with our guest and colleague, Aaron Dessen, Certified Financial Planner.™

Some of the things investors are overconfident about include:

  • Overconfidence in your ability to manage your own portfolio well

..tantamount to driving your car with a blindfold on..

Chris Payne
  • Overconfidence in having a specific amount you need to have for retirement

..when the market's going up, they say "hey, why aren't we taking more risk?"

Aaron Dessen, CFP®

When you see your neighbor making a killing in Bitcoin or Nvidia, it's a little bit of jealousy..

Bob Payne

Most of us need a Volvo to get through retirement but the seduction of building that Ferrari portfolio feels great, especially when the market's going up.

Ryan Payne

Hidden Facts of Finance

The federal government ran a deficit of 1.7 trillion in its fiscal 2023 year, which ended in September. More than its entire debt load in 1985.

Warren Buffett’s Berkshire Hathaway, which acknowledged last Saturday in its quarterly report that cash has risen to an almost unfathomable 150 billion, a figure whereby any one of the top 460 of the S&P 500 companies could be bought with Berkshire’s trove of cash.

Atherton, California, located near Palo Alto, has a median sales price of nearly $7.95 million, a record high. Atherton is the most expensive US zip code for the fourth year running.

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