What’s up! It’s episode 77 of Payne Points of Wealth and the market’s finally finding some footing. We’re getting some big up days. Is this just a bear market rally—a fake out—or is this the real deal? Are we’re going to see all-time highs this year? We’re going to talk about that along with the fact that we have interest rates…going up, oil prices…going up…inflation…going up! Are we going into a recession? So many economists are talking about it for 2023. We’re going to tell you what we think you should be doing right now. On the Tipping Point today we’re going to talk about those financial nuggets out there, those assets you forgot about long ago that you need to readdress to make sure your financial independence plan is in order. You don’t want to miss it!
You will want to hear this episode if you are interested in…
- Interest rates up = stock prices up [1:11]
- What the market is starting to tell us [3:13]
- Meanwhile on the inflation front [6:29]
- The Tipping Point [9:16]
- Multiple 401Ks does not make you diversified [13:29]
- Hidden Facts of Finance [17:59]
It’s not about what’s going on with inflation…today
What’s happening with inflation today isn’t what the market is pricing today. What the market is going to start pricing in today is what inflation looks like in 12 or 24 months. The truth is, no matter what the media tells you, inflation is very likely going to be lower. That’s what the market is starting to tell us right now. At this point, we’ve already gotten past the fact that the FED is going to raise interest rates. It’s not going to be a surprise. They have pretty much telegraphed what this year looks like with interest rate hikes. There’s nothing shocking about that. What you have to ask yourself as an investor is what will the world look like 12 to 24 months from now? What will the Payne’s be saying on their podcast then?
This week on the tipping point: Forgotten assets
At our firm, Payne Capital Management, we do a lot of financial projections each year. We have three certified financial planners on our staff and we do everything from a planning-based approach. One of the parts of our process—which we think is very powerful— is a financial audit. We tally up everything you have and build a financial portal so that you can get a bird’s eye view of everything you’re holding. A lot of times people have assets they have totally forgotten about.
Rediscovering forgotten assets is way better than slipping on an old pair of jeans and finding $20 in the pocket!
A common forgotten asset we see, especially with millennials and even baby boomers, are old 401Ks from past jobs. A 401K is a great tool but it’s a lousy place, a terrible platform, to invest your money. When you have multiple 401Ks in your portfolio you are paying multiple fees, have limited investment options, and you won’t be nearly as diversified as you think. Check out the episode to hear all the reasons we think this is a bad idea and what a better option is for that money.
This week’s hidden facts of finance
- Andy Warhol’s silkscreen portrait of Marilyn Monroe will be put for auction this Spring with an asking price of 200 million. That will be the highest asking price for any piece of art at auction in history.
- U.S. office occupancy is still just 40%, despite the phasing out of mask and vaccine mandates for 98% of the country.
- Happy 75th birthday to Elton John this month! With 300 million records sold, 59 billboard top 40 singles, nine #1 singles, seven #1 albums he is Billboard’s greatest solo artist of all time.
- Foreign investors have dumped a record 6 billion Chinese shares in the first three months of 2022 due to fear of new coronavirus outbreaks and the risk that Western countries will sanction Beijing as it supports Russia’s war in Ukraine. That might be the counter-trend. It might be time to buy Chinese stocks.
Resources & People Mentioned
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