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Payne Points of Wealth Podcast

Last time we saw this it didn’t end well. Ep#148

By February 13, 2024No Comments

The Momentum Trade

At the end of last year, we saw the rally starting to broaden out to other asset classes or sectors, for example, real estate, small caps, and international markets. However, coming into this year it has narrowed and money’s being funneled back into the mega-cap tech stocks. We’re seeing similarities to the late 90’s – 2000, where FOMO and “irrational exuberance” drove the dot com bubble.

..go back to 2000.. we had the momentum trade in dot com stocks. They were up every day.. then within 2 years they were down 60%

Bob Payne

..when was the last time we saw a stock up 50% in one day?.. We probably haven't seen that since the great dot com bubble back in 2000.

Ryan Payne

Dividends and cash flow matter

Mega-cap tech stocks may be the exciting momentum trade, but they offer little to no dividends if you’re close to, or in, retirement, you need income. Meanwhile, there are great opportunities to be broadly diversified.

..are you a gambler, a hedge fund investor? If you're a long term investor dividends are just as important as market movement

Bob Payne

Especially if you're retired.. cash flow is so much more important

Chris Payne

The Tipping Point

Steps to take right now 

to get your financial plan on track

Last year the news was terrible and many probably put their head in the sand and avoided their financial plan altogether. Fortunately, the negative predictions of doom failed to materialize. We think now is a great time to go over the process and steps you can take right now to get on track.

  • Organize all of your accounts in one place

  • Figure out what you spend and what you save

  • Know what you own and why you own it

  • Decide how much risk you need

  • Define your goals

  • Factor in inflation

You’ve got to start thinking about income.

Ryan Payne

Most of us don’t have a clue what we spend..

Chris Payne

It's also factoring in that insidious hidden tax inflation.. you do this on the back of an envelope, you think you're set, you start putting in those inflation numbers, it gets kind of scary.

Bob Payne

Hidden Facts of Finance

More young adults are living with their parents among adults under 25, 57% live with their parents, up from 53% in 1993. About 59% of parents said they helped their young adult children financially this past year, released Thursday by the Pew Research Center Focus on adults under 35.

China produces more electric vehicles than the rest of the world combined. Domestic sales jumped nearly 40% last year. Internal combustion car may disappear entirely in China within five years.

The drop to about $182 in Tesla’s share price two weeks ago saw short sellers make more than $2 billion by betting against the stock right before the company’s earnings report. Shares of Tesla are now down 27% so far this year after more than doubling in 2023.