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Payne Points of Wealth Podcast

Should You Sell Out of a Sideways Market? Ep#141

By December 1, 2023No Comments

A pretty good year

In 2023 we’ve seen all-time record highs in wages, net worth, and company earnings, yet the stock market is still 5% below its all-time record high of two years ago.

So, should you sell out of this sideways market? We say no, those who stay invested should have their patience rewarded.

S&P 500 hit its all time high two years ago .. investors feel like the market’s been up, down, but it's really just been sideways for like 24 months.

Ryan Payne

Stay invested because the news is positive

  • Oil prices have dropped dramatically
  • The 10-year treasury has dropped from 5.2% to 4.3%
  • Earnings are at a record high
  • Inflation is coming down
  • Automation and AI will increase US manufacturing productivity

I'm looking forward to this rally continuing.

Bob Payne

We’re already hitting record earnings here so when rates do go down it’s just going to make companies all the more profitable.

Chris Payne

China suddenly needs a friend

China’s had a big slowdown and hasn’t rebounded the way a lot of us anticipated. Their real estate market’s imploding and their stock market is down 50% from its highs.

..all of a sudden he wants to send the pandas back that he just took away from us..

Bob Payne

.. you can’t discount China, they have a huge impact on the global economy..everybody trades with China no matter what they tell you.

Ryan Payne

The Tipping Point

The financial shortcuts investors take

We talk about common shortcuts some take on their path to financial independence and why that’s a bad idea. Some of the shortcuts include:

  • Taking too much risk to make up for savings you didn’t do in earlier years

When you take too much risk, you not only have more aggressive portfolio, but you're also not well diversified.

Chris Payne

It's that paradox of return.. if you go down 50%, you have to go up 100% to get even again. So ironically, a less volatile, more conservative portfolio.. ends up outperforming the more risky portfolio.

Ryan Payne
    • Not taking the time to organize your finances

    • Taking a one-size fits all approach

We want you to know what you own and, why you own it.

Bob Payne

Hidden Facts of Finance

A Pew Research survey in 2014 found that about half the respondents had no idea who headed the US Central Bank, while only a quarter could correctly name the Fed head Janet Yellen at the time, who is now the Treasury secretary. Some 70% said the central bank was still chaired by Alan Greenspan, whose tenure had ended about eight years earlier.

Turkey contains tryptophan, which promotes good sleep and a good mood, according to Tryptophan is one of several essential amino acids, which are considered the building blocks of proteins in animals and plants. Specifically, Tryptophan is involved in the production of serotonin, a hormone that helps regulate mood, and melatonin, a hormone that helps to regulate your sleep cycle.

Tesla’s share price is below what it had been when it first joined the S&P 500 in late 2020. The S&P 500 had a total return of 27.02% from the time Tesla joined the index through November 15th. But because Tesla doesn’t pay a dividend, its return was only a mere 4.82%.