1 00:00:41,340 --> 00:00:45,689 Suze: August 4th 2024. Welcome everybody to the Women and Money 2 00:00:45,700 --> 00:00:50,900 Suze: podcast as well as everybody smart enough to listen, Suze 3 00:00:50,909 --> 00:00:55,270 Suze: O here and today is Suze School. So I'm going 4 00:00:55,279 --> 00:00:59,970 Suze: to be giving you some really great information in terms 5 00:00:59,979 --> 00:01:01,810 Suze: of things that I want you to at least look 6 00:01:01,819 --> 00:01:02,729 Suze: into buying 7 00:01:03,119 --> 00:01:08,800 Suze: my thoughts about what's going on and basically the posture, 8 00:01:08,809 --> 00:01:14,800 Suze: the investment posture and psychology that all of you should 9 00:01:14,809 --> 00:01:18,919 Suze: be taking. But before we begin with that, I just 10 00:01:18,930 --> 00:01:24,730 Suze: have to say happy 18th birthday on Tuesday, Connor, what 11 00:01:24,739 --> 00:01:27,349 Suze: an incredible young man. I happen to think that you 12 00:01:27,360 --> 00:01:30,680 Suze: are all right. Everybody. I just wanted to say that 13 00:01:30,690 --> 00:01:32,349 Suze: I like that boy 14 00:01:33,449 --> 00:01:36,720 Suze: as all of, you know, KT and I live in 15 00:01:36,730 --> 00:01:41,949 Suze: the Bahamas and during this past week on the news 16 00:01:41,959 --> 00:01:45,629 Suze: constantly was that there was a storm that was going 17 00:01:45,639 --> 00:01:50,190 Suze: to come this way, but people weren't sure the American 18 00:01:50,199 --> 00:01:54,300 Suze: model showed that it was going to come right at us. 19 00:01:54,309 --> 00:01:57,910 Suze: The European model showed that it was going to go 20 00:01:57,919 --> 00:01:59,919 Suze: under us and go into the Gulf. 21 00:02:00,809 --> 00:02:05,550 Suze: So then the question becomes, what do we do when 22 00:02:05,559 --> 00:02:09,070 Suze: we're not sure what's going to happen? Because normally when 23 00:02:09,080 --> 00:02:12,750 Suze: a storm is coming right at us, we evacuate the 24 00:02:12,758 --> 00:02:15,668 Suze: island and we go somewhere that it's going to be 25 00:02:15,679 --> 00:02:19,750 Suze: safe and sound because going through any type of serious 26 00:02:19,758 --> 00:02:25,339 Suze: storm on this island is not wise. Remember this island 27 00:02:25,350 --> 00:02:28,789 Suze: at its widest point is half a mile wide. 28 00:02:29,139 --> 00:02:33,919 Suze: And our home has water on one side, water on 29 00:02:33,929 --> 00:02:37,610 Suze: the other side that is not very far away at 30 00:02:37,619 --> 00:02:38,919 Suze: all from the house. 31 00:02:39,550 --> 00:02:42,149 Suze: So you have to prepare, you have to go. Oh 32 00:02:42,179 --> 00:02:48,270 Suze: my God, the predictors are totally confused. So what should 33 00:02:48,279 --> 00:02:53,130 Suze: we do? So, Colo brought in all the furniture and 34 00:02:53,139 --> 00:02:56,758 Suze: he prepared the house as if it was going to 35 00:02:56,770 --> 00:03:01,448 Suze: come right here and we knew that we could leave 36 00:03:01,460 --> 00:03:05,449 Suze: the island immediately if we needed to. But the thing 37 00:03:05,460 --> 00:03:08,009 Suze: that takes a long time 38 00:03:08,339 --> 00:03:11,978 Suze: is bringing in all the furniture, taking away everything that 39 00:03:11,990 --> 00:03:18,839 Suze: could fly, bolting everything down. That's what takes time preparing 40 00:03:18,850 --> 00:03:23,989 Suze: for it in case it were to come after. Of course, 41 00:03:24,000 --> 00:03:28,679 Suze: we did all that. Then the weather people came out 42 00:03:28,690 --> 00:03:32,728 Suze: and said it's absolutely going south. It is not going 43 00:03:32,740 --> 00:03:36,839 Suze: to hit us. So here we did all of this 44 00:03:36,850 --> 00:03:38,080 Suze: preparation 45 00:03:38,710 --> 00:03:42,050 Suze: and in the end, we didn't need to, 46 00:03:43,029 --> 00:03:47,110 Suze: but it was smart that we did because if the 47 00:03:47,119 --> 00:03:51,330 Suze: forecasters came out and they said it's coming right at us, 48 00:03:51,339 --> 00:03:53,729 Suze: we were ready for it. 49 00:03:54,440 --> 00:03:59,520 Suze: And investing is kind of like that. You really don't 50 00:03:59,529 --> 00:04:03,869 Suze: know where the financial hurricane is going to go, what 51 00:04:03,880 --> 00:04:06,139 Suze: areas it's going to hit 52 00:04:07,050 --> 00:04:11,619 Suze: and how do you prepare? So that no matter what happens, 53 00:04:12,160 --> 00:04:14,820 Suze: you are protected. 54 00:04:15,440 --> 00:04:19,700 Suze: And a lot of that comes in with the areas 55 00:04:19,709 --> 00:04:24,349 Suze: that your money happens to be invested in. Just last week. 56 00:04:24,359 --> 00:04:28,000 Suze: I talked a little bit about how you can't have 57 00:04:28,010 --> 00:04:31,260 Suze: all your money just in technology, 58 00:04:31,950 --> 00:04:36,859 Suze: just in the magnificent seven. You can't do that because 59 00:04:36,869 --> 00:04:40,920 Suze: if the financial hurricane comes in, oh, it's gonna hurt. 60 00:04:41,309 --> 00:04:46,190 Suze: And of course, last week, the financial hurricane came in 61 00:04:46,200 --> 00:04:47,488 Suze: for that sector. 62 00:04:48,350 --> 00:04:53,829 Suze: So the question is, what do I think the forecast 63 00:04:53,839 --> 00:04:56,760 Suze: is now for the overall 64 00:04:57,619 --> 00:05:03,470 Suze: economy? Because what's happening in the overall economy on every 65 00:05:03,480 --> 00:05:04,709 Suze: possible level 66 00:05:05,829 --> 00:05:10,190 Suze: really affects what will happen in the stock market 67 00:05:11,100 --> 00:05:15,760 Suze: as well as in your financial life. So let me 68 00:05:15,769 --> 00:05:22,000 Suze: start with telling you about the things that concern me 69 00:05:23,079 --> 00:05:27,500 Suze: and that I have to take into consideration when I'm 70 00:05:27,510 --> 00:05:31,459 Suze: thinking about what do we do with money? 71 00:05:32,238 --> 00:05:36,940 Suze: The very first thing that I've always watched is Intel. Now, 72 00:05:36,950 --> 00:05:40,750 Suze: Intel is a big company and I just watched them 73 00:05:40,760 --> 00:05:43,079 Suze: because so many people use them and it's just a 74 00:05:43,089 --> 00:05:46,769 Suze: company that I've loved over the years. And what was 75 00:05:46,779 --> 00:05:52,820 Suze: interesting to me about Intel is that prior to the pandemic, 76 00:05:53,540 --> 00:06:01,700 Suze: their payroll was at 110,000 people that they had as employees. 77 00:06:02,230 --> 00:06:05,799 Suze: Then in 2022 78 00:06:06,609 --> 00:06:16,390 Suze: their payroll skyrocketed to 132,000 fabulous. Everybody. However, at the 79 00:06:16,399 --> 00:06:21,429 Suze: end of this year, their payroll is projected to be 80 00:06:21,440 --> 00:06:25,149 Suze: below 100,000. 81 00:06:26,290 --> 00:06:30,808 Suze: So they are now going to be down in employees 82 00:06:31,459 --> 00:06:37,390 Suze: more than they were during the pre pandemic times. Now, 83 00:06:37,399 --> 00:06:39,729 Suze: why does that matter to me? And why do I 84 00:06:39,738 --> 00:06:40,609 Suze: look at that 85 00:06:41,339 --> 00:06:45,510 Suze: because you have to look at if companies are starting 86 00:06:45,519 --> 00:06:51,440 Suze: to lay off people and they are actually shrinking their payrolls, 87 00:06:51,890 --> 00:06:56,238 Suze: then the question becomes, what do those people who no 88 00:06:56,250 --> 00:07:04,119 Suze: longer have jobs do? Especially at a time when artificial intelligence, 89 00:07:05,140 --> 00:07:11,980 Suze: in my opinion, is replacing so many jobs and occupations 90 00:07:11,989 --> 00:07:16,239 Suze: that people had to do prior to this and now 91 00:07:16,890 --> 00:07:19,059 Suze: a computer will do it for you. 92 00:07:19,890 --> 00:07:24,190 Suze: So when people are laid off and then the job 93 00:07:24,200 --> 00:07:29,100 Suze: opportunities possibly aren't as great as they used to be. 94 00:07:29,309 --> 00:07:33,399 Suze: And then those people don't have any more money where 95 00:07:33,410 --> 00:07:38,589 Suze: they could make purchases, buy things, keep the economy strong. 96 00:07:39,339 --> 00:07:42,399 Suze: That's just a warning sign to me. 97 00:07:43,140 --> 00:07:46,279 Suze: So when I look at where we are at the 98 00:07:46,290 --> 00:07:58,000 Suze: overall picture, currently, we are at 1.94 million continuing jobless claims. 99 00:07:58,730 --> 00:08:02,369 Suze: Why does that matter? Because that's the highest that it's 100 00:08:02,380 --> 00:08:06,589 Suze: been since 2017. 101 00:08:07,239 --> 00:08:12,600 Suze: So again, that just is something that concerns me. Now, 102 00:08:12,609 --> 00:08:16,959 Suze: the other thing that I love to always follow is 103 00:08:16,970 --> 00:08:20,350 Suze: that how are people doing with their credit cards? Are 104 00:08:20,359 --> 00:08:22,579 Suze: people paying their bills on time? 105 00:08:22,920 --> 00:08:27,019 Suze: Are they falling behind or is it getting bad enough 106 00:08:27,029 --> 00:08:32,069 Suze: that they are actually in collections? So I happen to 107 00:08:32,080 --> 00:08:38,039 Suze: always look at the National Association of Credit Managers reports 108 00:08:38,239 --> 00:08:43,270 Suze: because what this association does really is it keeps track 109 00:08:43,280 --> 00:08:47,619 Suze: of all the accounts that have not been paying as 110 00:08:47,630 --> 00:08:51,340 Suze: well as those that have been placed in collections. 111 00:08:51,929 --> 00:08:56,429 Suze: And the numbers currently, when you look at them, 112 00:08:57,130 --> 00:09:04,108 Suze: they are showing that it's the highest number since 2008. 113 00:09:04,530 --> 00:09:11,199 Suze: And I'm sure you all remember 2007, 2008, 2009, at 114 00:09:11,210 --> 00:09:12,510 Suze: least the beginning of it. 115 00:09:13,210 --> 00:09:18,650 Suze: Remember those times. So when I see that the number 116 00:09:18,659 --> 00:09:21,669 Suze: of people that are late in payments and the number 117 00:09:21,679 --> 00:09:25,309 Suze: of people that are going into collection are the highest 118 00:09:25,320 --> 00:09:27,270 Suze: since 2008. 119 00:09:27,919 --> 00:09:32,309 Suze: It concerns me. Then of course, I always look at 120 00:09:32,320 --> 00:09:40,260 Suze: bankruptcies and bankruptcies are absolutely increasing. I also like to 121 00:09:40,270 --> 00:09:44,500 Suze: look at car sales even more than what's happening with 122 00:09:44,510 --> 00:09:49,580 Suze: real estate because real estate has gone. So high interest 123 00:09:49,590 --> 00:09:53,409 Suze: rates to buy real estate are still relatively high, 124 00:09:54,260 --> 00:09:56,429 Suze: although not as high as they were, but they're still 125 00:09:56,440 --> 00:10:01,960 Suze: relatively high. So I look at car sales because people 126 00:10:01,969 --> 00:10:05,770 Suze: need a car, they need a car to get to 127 00:10:05,780 --> 00:10:10,590 Suze: work they just need a car, plus they want cars. 128 00:10:10,830 --> 00:10:13,440 Suze: And if you're looking at not just here in the 129 00:10:13,450 --> 00:10:20,549 Suze: United States, but globally, car sales are weak across the board. 130 00:10:21,650 --> 00:10:26,750 Suze: So those are certain things that are concerning me 131 00:10:27,840 --> 00:10:32,179 Suze: going away from money for one second. Right now. The 132 00:10:32,190 --> 00:10:36,099 Suze: other thing that is concerning me big time 133 00:10:37,109 --> 00:10:41,090 Suze: and therefore affecting the things that I would invest in 134 00:10:41,099 --> 00:10:43,210 Suze: or tell you to invest in 135 00:10:43,940 --> 00:10:49,140 Suze: is the potential war in the Middle East. And when 136 00:10:49,150 --> 00:10:52,608 Suze: I see that the United States is sending ships and 137 00:10:52,619 --> 00:10:57,799 Suze: carriers into the Middle East that concerns me. 138 00:10:59,299 --> 00:11:03,659 Suze: So could we be in an all out war over there? 139 00:11:04,510 --> 00:11:09,150 Suze: Well, we have a good possibility, even a probability that 140 00:11:09,159 --> 00:11:13,569 Suze: that is coming. Now, I hope it is diverted. I 141 00:11:13,580 --> 00:11:16,690 Suze: do not want to see that happen on any level, 142 00:11:17,159 --> 00:11:21,409 Suze: but one has to look at the realities of what 143 00:11:21,419 --> 00:11:26,010 Suze: is really going on there. And that then tells me, oh, 144 00:11:26,710 --> 00:11:31,070 Suze: well, I have to prepare for that just like the hurricane. 145 00:11:31,280 --> 00:11:33,960 Suze: So what would I then want to put in a 146 00:11:33,969 --> 00:11:35,539 Suze: portfolio 147 00:11:36,340 --> 00:11:41,479 Suze: that helps protect me against such a possibility. 148 00:11:42,169 --> 00:11:45,479 Suze: Next, let's go back to financial things that are, I 149 00:11:45,489 --> 00:11:51,359 Suze: find very, very interesting. I've been talking about either Series 150 00:11:51,369 --> 00:11:54,679 Suze: I bonds for quite a few years and then I 151 00:11:54,690 --> 00:11:57,569 Suze: switched and about a year ago, maybe I can't remember 152 00:11:57,580 --> 00:12:01,369 Suze: the timing. I was telling all of you, I'm not 153 00:12:01,380 --> 00:12:05,599 Suze: liking Series I bonds if you have certain Series I bonds, 154 00:12:05,609 --> 00:12:09,510 Suze: I would be coming out of them to take advantage 155 00:12:09,520 --> 00:12:10,950 Suze: and locking in 156 00:12:11,380 --> 00:12:16,039 Suze: the interest rates that treasuries were offering at the time. 157 00:12:17,150 --> 00:12:19,580 Suze: And I know there are a lot of other people 158 00:12:19,590 --> 00:12:23,570 Suze: that do webinars and that are on youtube and everything 159 00:12:23,580 --> 00:12:27,510 Suze: that our series I bonds people and all these things 160 00:12:27,739 --> 00:12:32,479 Suze: and worry about inflation and those kinds of things coming again. 161 00:12:33,070 --> 00:12:37,989 Suze: I'm somebody who thinks, listen, if inflation comes again, if whatever, 162 00:12:38,000 --> 00:12:41,000 Suze: all right, I'll deal with it at that time. But 163 00:12:41,010 --> 00:12:44,159 Suze: I think that there's more of a chance that interest 164 00:12:44,169 --> 00:12:45,929 Suze: rates are going to go down 165 00:12:46,400 --> 00:12:50,080 Suze: in the long run, then go up. And I've been 166 00:12:50,090 --> 00:12:54,309 Suze: telling you that, which is why I wasn't liking Series 167 00:12:54,320 --> 00:12:56,859 Suze: I bonds. I didn't want to lock in my money 168 00:12:56,869 --> 00:12:59,549 Suze: for five years. I didn't want to get what I 169 00:12:59,559 --> 00:13:02,260 Suze: was getting there. I wanted to lock in to remember 170 00:13:02,270 --> 00:13:06,070 Suze: all this, everybody, the interest that you could lock in 171 00:13:06,080 --> 00:13:11,080 Suze: for 20 or 30 years on treasury bonds. 172 00:13:11,609 --> 00:13:15,440 Suze: I even told you a long time ago that I 173 00:13:15,450 --> 00:13:21,489 Suze: was putting significant sums of money into the 30 year 174 00:13:21,500 --> 00:13:25,650 Suze: Treasury bond. And I started doing that when interest rates 175 00:13:25,659 --> 00:13:32,559 Suze: were at 4.1% 4.3%. And even though I was early, 176 00:13:32,989 --> 00:13:35,150 Suze: I just kept doing it 177 00:13:36,250 --> 00:13:38,619 Suze: after I had done that, by the way, I just 178 00:13:38,630 --> 00:13:43,630 Suze: want to say this treasury interest rates on those maturities 179 00:13:44,200 --> 00:13:49,709 Suze: went higher and higher. And I watched the value of 180 00:13:49,719 --> 00:13:55,549 Suze: my treasuries that I had purchased go down and down. 181 00:13:56,219 --> 00:14:00,460 Suze: But I was patient because I believed in what I said. 182 00:14:00,789 --> 00:14:03,659 Suze: I don't think that there's a way one can time 183 00:14:03,669 --> 00:14:08,478 Suze: when something is going to happen, you just wanna be prepared. 184 00:14:08,489 --> 00:14:13,530 Suze: You want your furniture inside in case the storm comes 185 00:14:13,690 --> 00:14:18,780 Suze: and if it doesn't come, ok, your furniture was protected, 186 00:14:18,789 --> 00:14:23,030 Suze: the house is protected. Everything is ok. Are you following 187 00:14:23,099 --> 00:14:25,320 Suze: my train of thoughts here? 188 00:14:26,140 --> 00:14:32,239 Suze: So I bought treasuries, watched the money go down and 189 00:14:32,250 --> 00:14:36,520 Suze: here we are, August 4th 2024. 190 00:14:37,460 --> 00:14:41,700 Suze: And now when I look at the yield of 30 191 00:14:41,880 --> 00:14:47,119 Suze: year treasuries, they are back to 4.1%. 192 00:14:47,979 --> 00:14:51,940 Suze: So what that means is that the 30 year treasuries 193 00:14:51,950 --> 00:14:55,299 Suze: I bought at 4.3% and higher 194 00:14:56,539 --> 00:15:02,950 Suze: are now actually in positive territory because I want you 195 00:15:02,960 --> 00:15:08,880 Suze: to remember when interest rates go down, the value of 196 00:15:08,890 --> 00:15:14,000 Suze: bonds go up and the further out in maturity that 197 00:15:14,010 --> 00:15:19,020 Suze: you happen to have. So a 30 year bond, if 198 00:15:19,030 --> 00:15:23,010 Suze: interest rates go down that 30 year bond, the price 199 00:15:23,020 --> 00:15:25,030 Suze: of it will go up more 200 00:15:25,760 --> 00:15:29,450 Suze: than a 10 year treasury note or a two year 201 00:15:29,460 --> 00:15:35,229 Suze: treasury note. If interest rates go up, the value of 202 00:15:35,239 --> 00:15:37,760 Suze: a 30 year bond will go down more 203 00:15:38,640 --> 00:15:42,609 Suze: than a 10 year Treasury note or a two year. 204 00:15:42,619 --> 00:15:47,690 Suze: So the shorter term maturities have less fluctuation both up 205 00:15:47,700 --> 00:15:53,950 Suze: and down than longer term maturities given that, I think 206 00:15:54,479 --> 00:15:58,179 Suze: interest rates are going to continue down here. 207 00:15:59,659 --> 00:16:04,469 Suze: I went out long term. Now, I have suggested to 208 00:16:04,479 --> 00:16:05,719 Suze: all of you 209 00:16:06,530 --> 00:16:10,840 Suze: that you should look at doing 20 - 30 years, but given 210 00:16:10,849 --> 00:16:15,070 Suze: that we don't know really what's going to happen in 211 00:16:15,080 --> 00:16:17,109 Suze: this world, you have to prepare. 212 00:16:17,789 --> 00:16:23,549 Suze: So it doesn't hurt to do a ladder whether it's CDS, treasuries, 213 00:16:23,559 --> 00:16:29,000 Suze: whatever it happens to be of longer term, maturities combined 214 00:16:29,010 --> 00:16:32,289 Suze: with some short term. So that no matter what happens, 215 00:16:32,299 --> 00:16:34,669 Suze: you are protected, 216 00:16:35,409 --> 00:16:40,109 Suze: that's still something I want you to be doing. 217 00:16:41,159 --> 00:16:43,270 Suze: If you now look at 218 00:16:44,109 --> 00:16:50,010 Suze: the 10 year treasury and this is key everybody. 219 00:16:50,869 --> 00:16:57,969 Suze: The 10 year Treasury is currently at 3.8%. 220 00:16:58,820 --> 00:17:02,559 Suze: Do you also remember me telling you that if interest 221 00:17:02,570 --> 00:17:07,339 Suze: rates for a 10 year treasury happen to go below 4%? 222 00:17:07,500 --> 00:17:09,438 Suze: Here we go. Everybody. 223 00:17:10,160 --> 00:17:13,260 Suze: And I said if that were to happen, don't be 224 00:17:13,270 --> 00:17:18,659 Suze: surprised if you didn't see 10 year treasuries go down 225 00:17:18,670 --> 00:17:22,219 Suze: to 3.43%. 226 00:17:23,578 --> 00:17:26,078 Suze: Now, why is that important? 227 00:17:26,718 --> 00:17:31,298 Suze: That's important because it is the 10 year Treasury 228 00:17:32,000 --> 00:17:39,069 Suze: that essentially affects mortgage rates. What the 10 year Treasury does? 229 00:17:39,229 --> 00:17:43,739 Suze: It correlates to what the 30 year or the 15 230 00:17:43,780 --> 00:17:48,060 Suze: year mortgage rates or even adjustable rate mortgages are going 231 00:17:48,069 --> 00:17:54,660 Suze: to be, which obviously affects, as I just said, real estate. Now, 232 00:17:54,670 --> 00:17:55,660 Suze: currently 233 00:17:56,589 --> 00:18:05,250 Suze: the 30 year mortgage is still at about 6.7% or 7.2% 234 00:18:06,640 --> 00:18:12,770 Suze: the last time the 10 year was at 3.8% the 235 00:18:12,780 --> 00:18:19,319 Suze: 30 year mortgage was about 5.22%. Now, that also had 236 00:18:19,329 --> 00:18:22,989 Suze: to do with economic conditions kind of back in 2009 237 00:18:23,000 --> 00:18:23,739 Suze: and everything. 238 00:18:24,410 --> 00:18:31,389 Suze: But mortgage rates, in my opinion are absolutely heading down. 239 00:18:31,890 --> 00:18:36,290 Suze: The other thing that I find very interesting about treasuries, 240 00:18:36,400 --> 00:18:39,948 Suze: which is why I'm telling you, you need to go 241 00:18:39,959 --> 00:18:41,310 Suze: longer term, 242 00:18:41,760 --> 00:18:44,489 Suze: that the interest rates that you've been getting in money 243 00:18:44,500 --> 00:18:49,609 Suze: market funds are absolutely starting to come down as well. 244 00:18:49,709 --> 00:18:53,180 Suze: So it may not be as safe of a haven 245 00:18:53,199 --> 00:18:57,619 Suze: just to keep money thinking, oh, I'm always gonna get 5% 246 00:18:57,630 --> 00:18:58,250 Suze: on it 247 00:18:59,109 --> 00:19:03,609 Suze: because of what's happening. If you now look at the 248 00:19:03,619 --> 00:19:10,709 Suze: two year Treasury note, it's now at about 3.88% 249 00:19:11,390 --> 00:19:13,329 Suze: the 10 year 250 00:19:14,089 --> 00:19:23,698 Suze: is at 3.79%. They are incredibly, incredibly close 251 00:19:24,410 --> 00:19:28,669 Suze: and because of what's happening with interest rates out there 252 00:19:29,209 --> 00:19:32,140 Suze: in the treasuries, for instance, which are easy for you 253 00:19:32,150 --> 00:19:33,310 Suze: to follow. 254 00:19:34,599 --> 00:19:39,030 Suze: I think that this will be forcing the hand of 255 00:19:39,040 --> 00:19:44,159 Suze: Jay Powell who should have lowered interest rates already. In 256 00:19:44,170 --> 00:19:48,869 Suze: my opinion, he is behind again. He is not being 257 00:19:48,880 --> 00:19:53,250 Suze: proactive to stop a possible recession or whatever may be 258 00:19:53,260 --> 00:19:58,270 Suze: looming out there. So he may be forced to actually 259 00:19:58,280 --> 00:20:02,790 Suze: lower interest rates even before September 18th. 260 00:20:03,339 --> 00:20:09,400 Suze: But these are all the things everybody, ok, that happens 261 00:20:09,410 --> 00:20:14,599 Suze: to be concerning me and things that I want you 262 00:20:14,609 --> 00:20:18,239 Suze: to absolutely be paying attention to. 263 00:20:19,000 --> 00:20:22,770 Suze: Now, for those of you, let's talk about technology for 264 00:20:22,780 --> 00:20:23,649 Suze: one second 265 00:20:24,760 --> 00:20:29,819 Suze: and your stocks like Meta and Apple and Amazon and 266 00:20:29,829 --> 00:20:32,859 Suze: all the stocks that all of you have wanted to 267 00:20:32,869 --> 00:20:37,910 Suze: be in or the qqqs, which is an ETF of 268 00:20:37,920 --> 00:20:40,630 Suze: the basket of all those stocks. 269 00:20:41,280 --> 00:20:46,629 Suze: The truth of the matter is those will eventually one 270 00:20:46,640 --> 00:20:50,969 Suze: day come back and they're not just going to come 271 00:20:50,979 --> 00:20:55,139 Suze: back because they're down, you are never to buy something 272 00:20:55,150 --> 00:21:00,979 Suze: just because it has decreased in price. You buy something 273 00:21:01,079 --> 00:21:03,380 Suze: because it has gone on sale 274 00:21:03,819 --> 00:21:10,579 Suze: and it's still a valuable used commodity. It's something that 275 00:21:10,589 --> 00:21:14,650 Suze: you want. It's something that will be leading the world 276 00:21:14,770 --> 00:21:19,229 Suze: in how the world operates and all of those kinds 277 00:21:19,239 --> 00:21:23,859 Suze: of stocks are still as great as they have ever been. 278 00:21:23,939 --> 00:21:28,020 Suze: My favorite is Apple, as many of, you know, and 279 00:21:28,030 --> 00:21:31,399 Suze: so when those stocks go down, 280 00:21:32,310 --> 00:21:35,930 Suze: obviously, if you are losing sleep, you can't take it. 281 00:21:36,290 --> 00:21:40,000 Suze: All of that is just making you sick to your stomach. 282 00:21:40,160 --> 00:21:42,839 Suze: All right, then you have to do what makes you 283 00:21:42,849 --> 00:21:46,589 Suze: feel secure because remember, the goal of money is for 284 00:21:46,599 --> 00:21:49,310 Suze: you to be secure, but it would have been a 285 00:21:49,319 --> 00:21:51,089 Suze: huge mistake 286 00:21:51,930 --> 00:21:55,430 Suze: if you have time on your side where you can 287 00:21:55,439 --> 00:21:59,030 Suze: leave this money in those stocks and you are diversified 288 00:21:59,040 --> 00:22:01,619 Suze: in other areas as well, which I will talk about 289 00:22:01,630 --> 00:22:02,349 Suze: in a second. 290 00:22:03,040 --> 00:22:05,729 Suze: It's a huge mistake if you just sold. 291 00:22:06,819 --> 00:22:12,760 Suze: And so therefore, even though they very probably will continue 292 00:22:12,770 --> 00:22:18,400 Suze: down with wise management of your money with continuing to 293 00:22:18,410 --> 00:22:23,410 Suze: dollar cost average into it on seriously big days when 294 00:22:23,420 --> 00:22:24,479 Suze: they are down, 295 00:22:26,099 --> 00:22:29,069 Suze: I don't think you'll be sorry, a few years from now, 296 00:22:29,079 --> 00:22:31,000 Suze: but you have to know 297 00:22:31,709 --> 00:22:36,170 Suze: that you have time on your side. And what starts 298 00:22:36,180 --> 00:22:39,920 Suze: to happen is there was a day last week when 299 00:22:39,930 --> 00:22:45,250 Suze: the market went down considerably and these stocks went down 300 00:22:45,260 --> 00:22:46,569 Suze: dramatically 301 00:22:47,280 --> 00:22:51,130 Suze: and you were scared to death. But then the very 302 00:22:51,140 --> 00:22:56,290 Suze: next day, the markets skyrocketed and these stocks made a 303 00:22:56,300 --> 00:23:01,290 Suze: great comeback. And then you thought to yourself, oh, great, great. 304 00:23:01,800 --> 00:23:03,920 Suze: It's gonna go up from here. I know that's what 305 00:23:03,930 --> 00:23:05,609 Suze: you were thinking and you were relieved 306 00:23:05,939 --> 00:23:12,319 Suze: and then the next two days obliterated once again, then 307 00:23:12,329 --> 00:23:15,640 Suze: you start thinking, oh my God, why didn't I sell 308 00:23:15,650 --> 00:23:18,420 Suze: the day that they were up? What's wrong with me? 309 00:23:18,430 --> 00:23:22,520 Suze: And now you are totally confused. And what's ruling 310 00:23:23,140 --> 00:23:30,040 Suze: your investment decisions are the emotions of fear and anger, 311 00:23:31,020 --> 00:23:34,129 Suze: fear that oh my God, these are gonna go down 312 00:23:34,140 --> 00:23:38,599 Suze: even lower. I'm gonna lose my money, anger that you 313 00:23:38,609 --> 00:23:42,260 Suze: did not sell when they were at their top. And 314 00:23:42,270 --> 00:23:47,639 Suze: those two emotions are two out of the three internal 315 00:23:47,650 --> 00:23:49,800 Suze: obstacles to wealth. 316 00:23:50,459 --> 00:23:53,420 Suze: When you come from a place of fear. When you 317 00:23:53,430 --> 00:23:56,050 Suze: come from a place of anger because you didn't do 318 00:23:56,060 --> 00:24:04,400 Suze: something you cannot make intelligent decisions. So maybe you should 319 00:24:04,410 --> 00:24:09,219 Suze: just stay and go away in terms of watching things 320 00:24:09,229 --> 00:24:13,400 Suze: that you know, are incredible and come back. Do not 321 00:24:13,410 --> 00:24:19,159 Suze: forget 2022 when these stocks were obliterated 322 00:24:20,000 --> 00:24:23,420 Suze: and then look at what happened. So you just need 323 00:24:23,430 --> 00:24:28,699 Suze: patience if you're invested in that sector and the ability 324 00:24:28,709 --> 00:24:32,020 Suze: to dollar cost average. Ok. 325 00:24:32,729 --> 00:24:37,270 Suze: So where should you be investing right now? 326 00:24:38,280 --> 00:24:43,229 Suze: Given what's happening with a possibility of war with interest 327 00:24:43,239 --> 00:24:48,390 Suze: rates coming down with the economy, maybe being in jeopardy 328 00:24:48,400 --> 00:24:49,660 Suze: with layoffs 329 00:24:50,609 --> 00:24:55,270 Suze: and things like that. Here are the areas that I 330 00:24:55,280 --> 00:24:59,800 Suze: really would like you to have some exposure to. But 331 00:24:59,810 --> 00:25:03,310 Suze: I've been telling you about these areas for a while now. 332 00:25:03,910 --> 00:25:05,589 Suze: One is gold 333 00:25:06,530 --> 00:25:09,629 Suze: and gold is a great place for you to be invested. 334 00:25:10,420 --> 00:25:16,369 Suze: ETF for gold is GLD in case a war happens 335 00:25:16,380 --> 00:25:18,829 Suze: to break out, I wouldn't be putting a lot of 336 00:25:18,839 --> 00:25:22,890 Suze: money in it, but I would have some exposure to it. 337 00:25:23,459 --> 00:25:27,969 Suze: I've already talked to you about bonds and you can 338 00:25:27,979 --> 00:25:33,920 Suze: buy individual bonds or you could buy ETFs that are bonds, 339 00:25:34,369 --> 00:25:38,290 Suze: but it's just something that you might want to consider 340 00:25:38,819 --> 00:25:47,229 Suze: utility stocks and utility ETFs with interest rates going down. 341 00:25:48,619 --> 00:25:52,208 Suze: Utilities are giving a great dividend 342 00:25:53,000 --> 00:25:57,020 Suze: and also I think will give you some appreciation. 343 00:25:57,689 --> 00:26:05,599 Suze: So the ETF that I like for utilities is XLU. XLU, 344 00:26:06,359 --> 00:26:11,560 Suze: The Utility Select Sector Spider Fund is currently trading at 345 00:26:11,569 --> 00:26:20,280 Suze: about $74 a share and giving you a yield of 3.22. Now, 346 00:26:20,290 --> 00:26:25,629 Suze: it's very near its year high, but I don't personally care. 347 00:26:26,290 --> 00:26:30,270 Suze: I just think it's something that gives you a defensive 348 00:26:30,280 --> 00:26:37,530 Suze: posture in terms of what's happening. The next is XLP. Now, 349 00:26:37,540 --> 00:26:43,629 Suze: this is an ETF, that's the consumer staple ETF that 350 00:26:43,640 --> 00:26:49,430 Suze: actually we talked about buying and we bought a long 351 00:26:49,439 --> 00:26:55,180 Suze: time ago when it was about $79 a share. 352 00:26:56,040 --> 00:26:59,369 Suze: And I wanted you to do it at that time 353 00:26:59,520 --> 00:27:03,260 Suze: because I was convinced on some level that we might 354 00:27:03,270 --> 00:27:07,119 Suze: go into recession and that people were only going to 355 00:27:07,130 --> 00:27:11,410 Suze: be buying things that they needed the staples in their house, 356 00:27:12,739 --> 00:27:17,699 Suze: meaning toothpaste and things like that that you need. So 357 00:27:17,709 --> 00:27:20,739 Suze: I told all of you to buy it at the time, 358 00:27:20,750 --> 00:27:25,199 Suze: it was at a 2.82% dividend yield right around there 359 00:27:25,619 --> 00:27:29,650 Suze: and you bought it many of you. And then as 360 00:27:29,660 --> 00:27:33,119 Suze: time went on, and the market started to be ok 361 00:27:33,170 --> 00:27:36,680 Suze: and everybody was going into technology and everything else was 362 00:27:36,689 --> 00:27:38,400 Suze: skyrocketing 363 00:27:39,369 --> 00:27:43,030 Suze: XLP, and remember this was only for a portion of 364 00:27:43,040 --> 00:27:48,750 Suze: your money. XLP went down as low as about $65 365 00:27:48,760 --> 00:27:52,169 Suze: a share. And a lot of you were writing me saying, Suze, 366 00:27:52,180 --> 00:27:54,619 Suze: you think we should sell, what should we do? And 367 00:27:54,630 --> 00:27:57,839 Suze: I could tell that they wanted to be more aggressive. 368 00:27:57,849 --> 00:27:59,660 Suze: So it was like, ok, if you want to sell, 369 00:27:59,670 --> 00:28:01,660 Suze: you could sell. There are other things you could buy 370 00:28:01,839 --> 00:28:04,669 Suze: and probably at that time, make more money, which they 371 00:28:04,680 --> 00:28:05,810 Suze: probably did. 372 00:28:06,640 --> 00:28:12,540 Suze: But as we speak today, XLP is right back again, 373 00:28:12,699 --> 00:28:16,219 Suze: at $79 a share, 374 00:28:17,250 --> 00:28:20,729 Suze: kind of like my bond that I bought and again 375 00:28:20,739 --> 00:28:26,569 Suze: paying 2.82 percent dividends. But I think XLP is a 376 00:28:26,579 --> 00:28:31,459 Suze: nice defensive posture that might make you a little bit 377 00:28:31,469 --> 00:28:36,109 Suze: of money. It's not gonna be like a QQQ or whatever, 378 00:28:36,219 --> 00:28:38,640 Suze: but it might make you a little bit of money 379 00:28:38,650 --> 00:28:43,300 Suze: and give you a little bit of income on the side. 380 00:28:43,430 --> 00:28:44,030 Suze: All right, 381 00:28:44,680 --> 00:28:52,819 Suze: next happens to be REITs - Real Estate Investment Trusts. 382 00:28:53,579 --> 00:28:55,920 Suze: Now, in the past, 383 00:28:56,630 --> 00:29:00,410 Suze: I gave you the names of two REITs that I 384 00:29:00,420 --> 00:29:05,449 Suze: liked very much. My favorite actually was realty income that 385 00:29:05,459 --> 00:29:09,000 Suze: has done very nice for all of us. I know 386 00:29:09,020 --> 00:29:14,910 Suze: Keith Fitzgerald really likes, an REIT by the name of 387 00:29:14,920 --> 00:29:23,010 Suze: Care Trust REIT symbol CTRE and that's at a 4.24% yield. 388 00:29:23,910 --> 00:29:26,689 Suze: So those are reits that I've told you about a 389 00:29:26,699 --> 00:29:30,900 Suze: long time ago on this podcast. And actually, if you 390 00:29:30,910 --> 00:29:34,130 Suze: had purchased them when I first talked about them, you 391 00:29:34,140 --> 00:29:39,449 Suze: would be up significantly. Another overall 392 00:29:40,089 --> 00:29:49,000 Suze: REIT is the iShares US Real Estate ETF symbol IYR. 393 00:29:49,050 --> 00:29:53,680 Suze: It's at about $95 a share right now paying about 394 00:29:53,689 --> 00:29:59,619 Suze: a 3% dividend again, almost at its high. But for 395 00:29:59,630 --> 00:30:05,219 Suze: some exposure in that area, not a bad idea. 396 00:30:06,569 --> 00:30:12,989 Suze: So another area is health care and for exposure to 397 00:30:13,000 --> 00:30:18,439 Suze: healthcare via an ETF I like the Health Care Select 398 00:30:18,449 --> 00:30:29,630 Suze: Sector Spider symbol XLV paying you approximately. I think it's 3% 399 00:30:30,599 --> 00:30:33,540 Suze: might be a way for not a lot of growth, people, 400 00:30:34,060 --> 00:30:36,500 Suze: it's not a lot of growth and it's not going 401 00:30:36,510 --> 00:30:43,500 Suze: to skyrocket, but these are things that will absolutely protect you. Obviously, 402 00:30:43,510 --> 00:30:46,599 Suze: you also want to be in defense of stocks or 403 00:30:46,609 --> 00:30:53,160 Suze: ETFs again, Lockheed Martin, Raytheon... stocks that will protect you 404 00:30:53,170 --> 00:30:56,900 Suze: be defensive against what is happening 405 00:30:57,469 --> 00:31:01,650 Suze: now, those are things that I would look at buying. 406 00:31:02,180 --> 00:31:07,050 Suze: What would I be staying away from or selling? 407 00:31:20,530 --> 00:31:26,319 Suze: I would be staying away from regional banks and European banks. 408 00:31:26,329 --> 00:31:29,390 Suze: I would not be investing in those. 409 00:31:30,109 --> 00:31:33,770 Suze: The other things that I would be staying away from 410 00:31:34,329 --> 00:31:38,729 Suze: at least for now would probably be Bitcoin. I do 411 00:31:38,739 --> 00:31:45,229 Suze: think Bitcoin currently at about $61,000 could very easily go down. 412 00:31:54,339 --> 00:31:58,890 Suze: We'll see if war happens. Gold probably is a better 413 00:31:58,900 --> 00:32:01,829 Suze: bet for you there. But did you notice I use 414 00:32:01,839 --> 00:32:05,050 Suze: the word bet you should never bet. But it's kind 415 00:32:05,060 --> 00:32:08,150 Suze: of when you're buying things like that, it's a little 416 00:32:08,160 --> 00:32:12,319 Suze: bit of a bet, especially with Bitcoin. But anyway, I 417 00:32:12,329 --> 00:32:16,000 Suze: still think long run Bitcoin can go and make you 418 00:32:16,010 --> 00:32:18,489 Suze: a whole lot of money one day. 419 00:32:19,500 --> 00:32:24,000 Suze: But it is something that has to go up, down, up, down, up, down. 420 00:32:24,359 --> 00:32:28,319 Suze: So the other day on the island I ran into 421 00:32:28,329 --> 00:32:34,650 Suze: a very wonderful and good photographer. He's here filming houses 422 00:32:34,660 --> 00:32:38,089 Suze: and the island and things like that. And we were 423 00:32:38,099 --> 00:32:42,380 Suze: talking and he said, oh, I invest most of my 424 00:32:42,390 --> 00:32:44,750 Suze: money in Bitcoin and Ethereum. 425 00:32:45,050 --> 00:32:47,949 Suze: And what I do, Suze is like when it was 426 00:32:47,959 --> 00:32:49,910 Suze: at 70 I sold out 427 00:32:50,579 --> 00:32:54,560 Suze: and then I put the money in stable coins and 428 00:32:54,569 --> 00:32:58,000 Suze: then when it goes down, I buy again and then 429 00:32:58,010 --> 00:33:01,189 Suze: I go up, down, up down and that's what I do. 430 00:33:01,920 --> 00:33:08,280 Suze: Now, what he didn't know is that when he sold Bitcoin, 431 00:33:08,420 --> 00:33:13,550 Suze: he now owes income taxes on that. And for some reason, 432 00:33:13,560 --> 00:33:17,500 Suze: he was under the impression because he went from one coin, 433 00:33:17,619 --> 00:33:23,260 Suze: Bitcoin to a stable coin. It wasn't a taxable transaction. 434 00:33:24,290 --> 00:33:27,650 Suze: And I explained to him. No, that's like selling one 435 00:33:27,660 --> 00:33:32,469 Suze: stock going into another stock. That doesn't mean that you're 436 00:33:32,479 --> 00:33:35,550 Suze: not going to be taxed on it. So when you 437 00:33:35,560 --> 00:33:37,550 Suze: trade anything, 438 00:33:38,520 --> 00:33:44,400 Suze: you have to take into consideration taxes, especially if it 439 00:33:44,410 --> 00:33:48,219 Suze: is outside of a retirement account 440 00:33:49,270 --> 00:33:55,069 Suze: for an ETF for Bitcoin. If Bitcoin does go down here. 441 00:33:55,239 --> 00:34:01,010 Suze: You know, I like the ETF IBIT as something that 442 00:34:01,020 --> 00:34:04,569 Suze: you might want to look into for money that you 443 00:34:04,579 --> 00:34:11,638 Suze: can afford to lose. So overall that is what I 444 00:34:11,649 --> 00:34:17,639 Suze: think is happening. That is the possible storm that might 445 00:34:17,649 --> 00:34:18,719 Suze: come our way 446 00:34:19,209 --> 00:34:23,189 Suze: but might get diverted. I don't think that we have 447 00:34:23,199 --> 00:34:27,639 Suze: seen the lows of these markets on any level here. 448 00:34:27,810 --> 00:34:31,120 Suze: So I think it's important that you prepare for a 449 00:34:31,129 --> 00:34:32,509 Suze: financial storm 450 00:34:33,260 --> 00:34:37,239 Suze: but do not let your emotions rule what you are 451 00:34:37,250 --> 00:34:43,319 Suze: investing in. But you have to be investing if you 452 00:34:43,330 --> 00:34:45,520 Suze: have what it takes to do. So 453 00:34:46,949 --> 00:34:51,350 Suze: in order to in the long run, really make more 454 00:34:51,360 --> 00:34:57,149 Suze: out of less money. It is just that simple as 455 00:34:57,159 --> 00:35:01,859 Suze: I hear the rain pouring down outside of my window 456 00:35:01,870 --> 00:35:06,429 Suze: right now. And what's interesting is that even though the storm, 457 00:35:06,439 --> 00:35:11,479 Suze: the big storm isn't coming this way, doesn't mean that 458 00:35:11,489 --> 00:35:14,590 Suze: we're not going to get showers and wind 459 00:35:15,989 --> 00:35:18,689 Suze: and that we don't want to get soaked. So we 460 00:35:18,699 --> 00:35:20,729 Suze: stay inside and we prepare 461 00:35:21,459 --> 00:35:24,840 Suze: and that is what I'm asking all of you to do. 462 00:35:25,459 --> 00:35:29,840 Suze: Just put up your umbrellas and prepare for a possible 463 00:35:29,850 --> 00:35:35,080 Suze: financial storm by looking into investing the way that I 464 00:35:35,090 --> 00:35:41,279 Suze: told you in this August 4th edition of Suze School. 465 00:35:41,290 --> 00:35:43,760 Suze: So until next week, there's really only one thing that 466 00:35:43,770 --> 00:35:45,350 Suze: I want you to remember when it comes to your 467 00:35:45,360 --> 00:35:45,919 Suze: money 468 00:35:46,139 --> 00:35:50,669 Suze: and that is people first, then money, then things now 469 00:35:50,679 --> 00:35:54,159 Suze: you stay safe and 470 00:35:55,020 --> 00:35:57,070 Suze: unstoppable.