5 companies leading the rally
It seems all market sentiment is driven by what AI companies are going to do. We recorded this episode right before the chipmaker Nvidia was to announce their quarterly earnings and the hype is strong. The top 5 tech giants that are involved in AI have been leading the rally.
”Everything seems to be predicated on what is artificial intelligence going to do, what's Nvidia going to do.
Ryan Payne
”If one of these companies miss on their earnings and drags the market down, you want to make sure you own other pieces of the market as well.
Courtney Garcia, CFP®
So much liquidity out there
There’s $6-7 trillion between money markets and cash equivalents. At some point, investors start thinking, that 5% is not going to last forever. A lot of that money is being funneled into a few mega-cap names.
”You've got a lot of money chasing a few names.. I'll tell you guys, after doing this for almost 50 years, that never ends well, never.
Bob Payne
Beyond AI, other great opportunities
Since the market bottomed in October, we’ve seen other areas that have outperformed the S&P 500; financials, industrials, small-caps, and pipelines. It’s a good time to deploy capital beyond tech.
”I don't understand how people could be emotional if they have a well-diversified income producing portfolio.
Chris Payne
The Tipping Point
True or False Quiz on
The Payne Philosophies
Back in the early days of Payne Capital Management, Bob developed certain philosophies and ways of doing things that we still do today. In this episode, we have a True or False quiz on the Payne Philosophies.
“You should always pay off your house as soon as you can.” –True or False
”When it comes to debt, that's an emotional thing.. I don't care how low the interest rate is on a mortgage, if you can't sleep at night.. pay it off or sell it.
Bob Payne
“Individual bonds are better than bond funds.” –True or False
”We do not like bond funds. We have never liked bond funds. We will never like bond funds.
Courtney Garcia, CFP®
“Annuities are the greatest thing since sliced bread.” –True or False
”I think we can all agree.. big rip-off.
Chris Payne
”You're better off investing the money on your own than giving it to an insurance company..
Ryan Payne
“It’s better to have a fee based advisor over an old school commission broker.” –True or False
”As a fee based advisor we have fiduciary responsibility.. that means we do what's in the best interest of our clients. That also means we have a vested interest in their success.
Chris Payne
Hidden Facts of Finance
Last year, U.S. imports from Mexico surpassed those from China for the first time in 20 years. During 2023, the value of goods imported to the U.S. from Mexico exceeded $475 billion, while Chinese imports approximated $427 billion as reported by the Commerce Department just two weeks ago.
Amazon was probably the largest delivery company in the U.S. last year, with 2023 deliveries projected last November to approximate 5.9 billion packages, outpacing both UPS and FedEx, according to a November 27 Wall Street Journal article.
The cocoa market was the strongest performing commodity in 2023, with London Cocoa finishing 2023, up 70%. The relentless move higher has continued into 2024, with London Cocoa rallying an additional 37%. Both contracts have hit record highs this year. Concerns over West African supply, specifically in the Ivory Coast and Ghana, have driven the market a lot higher.
