Payne Points of Wealth Podcast

Beware of the Shiny Brochure Ep#40

By June 2, 2021No Comments

Welcome to episode 40 of Payne Points of Wealth! Major indices aren’t going anywhere fast. If you look at the Dow and the S&P we’re basically in the same place now as the last two months. The NASDAQ—big tech— has been in the same place since mid-January. When you start looking under the surface cryptocurrencies are getting rocked right now. That inflationary pressure we’ve been talking about, we’re still seeing it in commodity prices. As we’re recording this oil is going through the roof! This big rotation continues to happen. We’re going to talk about strategically what you need to be doing and what to be thinking about with your portfolio. On the tipping point, we’re going to talk about all those shiny objects in the financial world. The financial services industry loves to sell you things that you don’t need. We’re going to point them out and show you how to avoid all those shiny objects at all costs.

You will want to hear this episode if you are interested in…

  • The greatest restructurer of all [1:50]
  • Two common mistakes investors are making [5:41]
  • Summer trends to consider [9:08]
  • The Tipping Point [10:35]
  • Cherry-picked past promising a perfect future [15:19]
  • Hidden Facts of Finance [20:27]

You haven’t missed the boat yet!

A big trend to think about this summer is travel is definitely happening! Everyone I’ve talked to is going on a trip this summer. Either they’re flying, going to be in their car, on their boats, everyone is moving around. Do you realize the amount of oil that’s going to be used! And as we’re recording this oil is at another recent high. All these trends are just going to continue to ramp up. Like they’re not going to slow down. The most obvious thing happening in plain sight right now is the fact that all these cyclical stocks, these more boring companies that didn’t do as well the last 10 years, are going to be up. This is going to last a long time so you’ve got to readjust your portfolio, you haven’t missed the boat, yet.

This week on the tipping point: Shiny things to avoid

Given a collection of around 75 years of experience and a high volume of portfolio reviews each month we’ve seen every strategy under the sun! So let’s talk about these offers or what we call shiny objects that a lot of financial services firms like to pitch and sell you. Because we do the analysis and we break these products down all the time we see a lot of buyer beware products. A lot of things that Wall Street is trying to sell you right now shockingly are not in your best interest. In our industry price compression is making everything is less expensive. Less expensive to trade and less expensive to invest in portfolios. That helps us as consumers and investors, but it really hurts Wall Street. They have to keep coming up with these new ideas— FYI, there are never any new ideas, just old ideas repackaged— and it comes wrapped in this shiny brochure. If you get that shiny brochure and you read all the way through it, like a textbook, and you get to the fine print at the end and there’s one caviar, one thing that happens and the entire product blows up, you can bet that one thing will happen. Your shiny product will blow up and you’ll be left with nothing but ashed in your account.

This week’s hidden facts of finance

Conventional thinking is usually wrong. Remember how millennials weren’t going to buy homes? Well, now home sales are at their highest levels since the housing bust. Remember how today’s consumers valued experiences over things? Well, spending on recreational vehicles and goods such as televisions and boats is up 14%. Remember last March at the bottom of the pandemic when everybody said the market’s going to take years to recover, we should get out now because it’s not going to get better for a long time. Well, guess what? That didn’t happen either. Isn’t it amazing when people think in groups how wrong they are? The other thing was millennials will never use financial advisors but I think the fastest-growing segment of our client base is millennials. So much for Robo-advisors!

Resources & People Mentioned

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