1 00:00:02,490 --> 00:00:03,140 Speaker 1: We are 2 00:00:30,569 --> 00:00:35,119 Suze: January 30th, 2025. Welcome everybody to the Women and Money podcast, 3 00:00:35,159 --> 00:00:39,310 Suze: as well as everybody smart enough to listen. 4 00:00:39,950 --> 00:00:45,290 Suze: And today is going to be Suze School and Sunday 5 00:00:45,290 --> 00:00:48,950 Suze: is going to be Ask KT and Suze anything. We're 6 00:00:48,950 --> 00:00:53,139 Suze: doing a little switcherunio here. I kind of like that 7 00:00:53,139 --> 00:00:54,700 Suze: switcherunio anyway. 8 00:00:54,959 --> 00:00:59,380 Suze: And the reason is because so many of you are 9 00:00:59,380 --> 00:01:03,549 Suze: freaked out about what happened in the stock market a 10 00:01:03,549 --> 00:01:08,750 Suze: few days ago when all of a sudden all your sweethearts, 11 00:01:08,790 --> 00:01:13,150 Suze: the magnificent seven, your future that you thought you were 12 00:01:13,150 --> 00:01:15,739 Suze: going to make a fortune on and you loved watching 13 00:01:15,739 --> 00:01:19,309 Suze: go up and up and up and up all of 14 00:01:19,309 --> 00:01:20,949 Suze: a sudden tanked. 15 00:01:22,150 --> 00:01:26,050 Suze: And now you are just depressed. You don't know what 16 00:01:26,050 --> 00:01:29,050 Suze: to do. You've been writing me. I've been getting more 17 00:01:29,050 --> 00:01:33,250 Suze: emails than ever before about: Suze, Suze, what should we do? 18 00:01:33,360 --> 00:01:36,128 Suze: Should we sell NVIDIA? Should we sell this? Should we 19 00:01:36,129 --> 00:01:38,849 Suze: sell that? And I thought, I got to do something 20 00:01:38,849 --> 00:01:45,720 Suze: about this. So Suze School is now in session. Before 21 00:01:45,720 --> 00:01:48,010 Suze: we get to the stock market, however, 22 00:01:48,339 --> 00:01:52,599 Suze: I think it's important to recognize what happened at the 23 00:01:52,599 --> 00:01:57,309 Suze: Fed meeting yesterday where the Fed funds rate were left 24 00:01:57,309 --> 00:01:58,389 Suze: the same. 25 00:01:59,339 --> 00:02:04,839 Suze: And personally I think it will be absolutely amazing if 26 00:02:04,839 --> 00:02:10,490 Suze: in this entire year of 2025 we get one more 27 00:02:10,490 --> 00:02:15,638 Suze: rate cut, maybe two, but I doubt it, but absolutely 28 00:02:15,639 --> 00:02:17,359 Suze: no more than 2. 29 00:02:18,199 --> 00:02:21,478 Suze: So things are kind of strange that way when we 30 00:02:21,479 --> 00:02:26,160 Suze: were expecting they were going to cut rates, and then 31 00:02:26,160 --> 00:02:29,160 Suze: when you heard him announce it yesterday, you saw the 32 00:02:29,160 --> 00:02:31,559 Suze: market start to go down, you saw all kinds of 33 00:02:31,559 --> 00:02:36,000 Suze: things start to happen, but what happened really that affected 34 00:02:36,000 --> 00:02:39,289 Suze: many of you, especially if you want to buy a home, 35 00:02:39,679 --> 00:02:43,199 Suze: is you saw the 10 year interest rate on the 36 00:02:43,199 --> 00:02:45,320 Suze: 10 year treasury tick up. 37 00:02:45,990 --> 00:02:50,020 Suze: And as I've told you many, many times, mortgages are 38 00:02:50,020 --> 00:02:55,259 Suze: directly attached to the 10 year treasury. So for those 39 00:02:55,258 --> 00:02:59,580 Suze: of you who were hoping that interest rates were going 40 00:02:59,580 --> 00:03:04,020 Suze: to be coming down for mortgages, I don't think your 41 00:03:04,020 --> 00:03:05,779 Suze: hope is going to be answered. 42 00:03:06,679 --> 00:03:10,559 Suze: Mortgages are around 7% right now, and I think they're 43 00:03:10,559 --> 00:03:16,270 Suze: going to stay at around 7% here for quite a while. 44 00:03:16,559 --> 00:03:19,279 Suze: So what does that mean also for those of you 45 00:03:19,279 --> 00:03:23,119 Suze: who are thinking about buying? If I were going to 46 00:03:23,119 --> 00:03:26,880 Suze: be buying real estate right now and I had to 47 00:03:26,880 --> 00:03:28,330 Suze: take out a mortgage. 48 00:03:28,570 --> 00:03:31,479 Suze: I have to tell you, I think I would probably 49 00:03:31,479 --> 00:03:36,000 Suze: wait till about September to do so. I would not 50 00:03:36,000 --> 00:03:39,960 Suze: be rushing to go ahead and buy right now at 51 00:03:39,960 --> 00:03:45,710 Suze: a 7% interest rate. Just saying. Maybe I'm wrong. Who knows? 52 00:03:45,919 --> 00:03:47,800 Suze: Maybe you can get a steal of a deal, and 53 00:03:47,800 --> 00:03:50,110 Suze: it makes sense for you to do it right now. 54 00:03:50,360 --> 00:03:52,839 Suze: But if you're not in a serious hurry, 55 00:03:53,639 --> 00:03:57,199 Suze: you might want to just wait. For those of you 56 00:03:57,199 --> 00:04:02,160 Suze: who are selling, well, your 3% interest rate that you 57 00:04:02,160 --> 00:04:06,080 Suze: probably locked in years ago is still looking better, is 58 00:04:06,080 --> 00:04:09,470 Suze: it not than ever? So if you have to sell 59 00:04:09,880 --> 00:04:12,160 Suze: and buy something else and you need to get a 60 00:04:12,160 --> 00:04:17,149 Suze: new mortgage, you might want to think about it as well, 61 00:04:17,559 --> 00:04:20,600 Suze: just saying. That's real estate. 62 00:04:21,269 --> 00:04:25,549 Suze: So now let's talk about the stock market. Did I 63 00:04:25,549 --> 00:04:29,510 Suze: not say a while ago that this was going to 64 00:04:29,510 --> 00:04:34,308 Suze: be a very volatile year, and I could swear that 65 00:04:34,309 --> 00:04:36,989 Suze: I probably just did a podcast on this not so 66 00:04:36,988 --> 00:04:41,510 Suze: long ago where I repeated that I had said that. 67 00:04:41,988 --> 00:04:45,140 Suze: And did I not say to you, so you have 68 00:04:45,140 --> 00:04:48,619 Suze: to prepare for the ups and the downs, and you 69 00:04:48,619 --> 00:04:52,450 Suze: have to take advantage when things go down if you're 70 00:04:52,450 --> 00:04:55,969 Suze: in this for the long run and if you know 71 00:04:55,970 --> 00:05:01,510 Suze: that you are invested in great quality stocks. Now I 72 00:05:01,510 --> 00:05:04,790 Suze: get that they came out the other day and they 73 00:05:04,790 --> 00:05:10,420 Suze: freaked everybody out with this DeepSeek new AI that China 74 00:05:10,420 --> 00:05:11,730 Suze: has come out with. 75 00:05:12,480 --> 00:05:16,290 Suze: And that is the reason that everything went down, especially 76 00:05:16,290 --> 00:05:20,679 Suze: the technology stocks, because China was able to do something 77 00:05:21,010 --> 00:05:24,928 Suze: for a fraction of the cost of doing it here 78 00:05:24,928 --> 00:05:26,440 Suze: in the United States. 79 00:05:27,269 --> 00:05:30,790 Suze: Now everybody's thinking they're going to stop buying NVIDIA chips. 80 00:05:30,869 --> 00:05:36,190 Suze: Oh my God, it's over here. Just stop. The other 81 00:05:36,190 --> 00:05:40,339 Suze: day KT said, Suze, did you download the app DeepSeek? 82 00:05:40,470 --> 00:05:42,549 Suze: And I looked at her and I said, Are you 83 00:05:42,549 --> 00:05:48,350 Suze: out of your mind? And she said, Why? I said, KT, 84 00:05:49,500 --> 00:05:53,820 Suze: everybody is having a fight right now over TikTok, and 85 00:05:53,820 --> 00:05:59,220 Suze: why are they doing that? Because China has made it 86 00:05:59,220 --> 00:06:03,380 Suze: so that everybody that's on that app, they are gathering 87 00:06:03,380 --> 00:06:07,339 Suze: the information. They are finding out everything about them. They're 88 00:06:07,339 --> 00:06:12,140 Suze: recording every keystroke, everything that they do. And now the 89 00:06:12,140 --> 00:06:15,579 Suze: government wants them to sell TikTok to somebody or they're 90 00:06:15,579 --> 00:06:17,019 Suze: going to close them down. 91 00:06:17,589 --> 00:06:22,440 Suze: I said, do you think for a second that DeepSeek 92 00:06:22,440 --> 00:06:24,600 Suze: isn't exactly the same? 93 00:06:25,619 --> 00:06:28,100 Suze: So there is no way that I am going to 94 00:06:28,100 --> 00:06:29,329 Suze: download this app. 95 00:06:30,059 --> 00:06:36,250 Suze: And probably all the information that everybody is using on it, 96 00:06:36,260 --> 00:06:39,730 Suze: the questions that they're asking, everything is going to be 97 00:06:39,730 --> 00:06:45,769 Suze: gathered and somehow be weaponized against the United States. Now 98 00:06:45,769 --> 00:06:47,010 Suze: call me crazy. 99 00:06:47,609 --> 00:06:52,809 Suze: Call me paranoid or call me realistic, but I don't 100 00:06:52,809 --> 00:06:58,010 Suze: need DeepSeek because there are so many great AI apps 101 00:06:58,010 --> 00:07:00,768 Suze: right here in the United States. Listen, they don't cost 102 00:07:00,769 --> 00:07:04,359 Suze: you anything. Most of them are free. So why do 103 00:07:04,359 --> 00:07:08,369 Suze: you care if you go on an AI app that 104 00:07:08,369 --> 00:07:11,809 Suze: costs a fraction of what it takes to make? Why 105 00:07:11,809 --> 00:07:12,720 Suze: do you care? 106 00:07:12,970 --> 00:07:17,000 Suze: You're just curious about giving all your information away, so 107 00:07:17,000 --> 00:07:21,350 Suze: I am giving you my personal warning. I would stay 108 00:07:21,350 --> 00:07:26,679 Suze: as far away from DeepSeek as I possibly can. Now, 109 00:07:26,880 --> 00:07:28,519 Suze: even with that said. 110 00:07:29,820 --> 00:07:33,159 Suze: How do I think that is going to affect NVIDIA 111 00:07:33,159 --> 00:07:37,070 Suze: and all the other AI stocks in the long run, 112 00:07:37,279 --> 00:07:42,760 Suze: I don't think so, not at all. Yeah, it's freaky 113 00:07:42,760 --> 00:07:45,519 Suze: to think that everybody's spending more money than they need 114 00:07:45,519 --> 00:07:46,640 Suze: to be spending. 115 00:07:47,970 --> 00:07:52,640 Suze: But I don't think that it's really going to disrupt 116 00:07:52,850 --> 00:07:57,570 Suze: the brilliance behind some of the AI stocks here in 117 00:07:57,570 --> 00:08:03,920 Suze: the United States, especially NVIDIA. They already can't fulfill most 118 00:08:03,920 --> 00:08:07,760 Suze: of the orders, if not all of them, that they have, 119 00:08:08,130 --> 00:08:11,690 Suze: so I would not be freaking out. I would not 120 00:08:11,690 --> 00:08:15,040 Suze: be selling in particular my NVIDIA stock here. 121 00:08:15,799 --> 00:08:19,809 Suze: I would, however, be prepared that it could go lower 122 00:08:20,390 --> 00:08:24,739 Suze: and to dollar cost average into it if I were you, 123 00:08:25,029 --> 00:08:30,309 Suze: I would put a low ball offer at about $110 124 00:08:30,309 --> 00:08:35,020 Suze: a share, about $10 under where it's trading right now. 125 00:08:35,390 --> 00:08:38,348 Suze: And if you want more, let's just see if it 126 00:08:38,349 --> 00:08:40,909 Suze: goes down there and you can pick some up at 127 00:08:40,909 --> 00:08:43,630 Suze: a really great price. 128 00:08:44,359 --> 00:08:47,439 Suze: But you have all really got to remember. 129 00:08:48,650 --> 00:08:51,750 Suze: Are you an investor or are you a speculator? 130 00:08:52,710 --> 00:08:57,010 Suze: And if you're speculating, OK, buy sell buy sell, but 131 00:08:57,010 --> 00:09:01,449 Suze: if you're an investor, you have to wait for the 132 00:09:01,450 --> 00:09:05,719 Suze: long run for the true results to come in. A 133 00:09:05,719 --> 00:09:08,169 Suze: friend of mine emailed me the other day and said, 134 00:09:08,250 --> 00:09:12,049 Suze: I'm so afraid I can't stand watching my profits go 135 00:09:12,049 --> 00:09:14,330 Suze: down the drain. I think I'm going to sell NVIDIA. 136 00:09:15,119 --> 00:09:19,270 Suze: And then NVIDIA went up shortly after that, and I 137 00:09:19,270 --> 00:09:21,270 Suze: wrote him and I said, well, did you sell? And 138 00:09:21,270 --> 00:09:23,348 Suze: he said, No, no. I said, are you glad you 139 00:09:23,349 --> 00:09:26,590 Suze: didn't sell? And he said, Yes. And I said, you 140 00:09:26,590 --> 00:09:31,780 Suze: have to understand the role that emotions play in investing. 141 00:09:32,030 --> 00:09:36,630 Suze: Now I'm sure he's absolutely freaked again that he didn't sell. 142 00:09:37,770 --> 00:09:40,659 Suze: But if you love a stock. 143 00:09:41,700 --> 00:09:46,609 Suze: And the stock itself really is a solid good stock. 144 00:09:47,590 --> 00:09:49,539 Suze: And the whole future, 145 00:09:50,299 --> 00:09:54,250 Suze: it is all about AI and where the growth is 146 00:09:54,250 --> 00:09:58,250 Suze: really going to come from in the future, then you 147 00:09:58,250 --> 00:10:01,969 Suze: stick with it. So many of you are so fickle, 148 00:10:02,210 --> 00:10:05,409 Suze: especially with the stock Apple, which you know is one 149 00:10:05,409 --> 00:10:10,340 Suze: of my favorite stocks, because it hasn't really been participating 150 00:10:10,530 --> 00:10:13,010 Suze: and it's just kind of doing its thing. You give 151 00:10:13,010 --> 00:10:17,409 Suze: up hope on it and it's like, why do you 152 00:10:17,409 --> 00:10:18,960 Suze: do that, everybody. 153 00:10:19,780 --> 00:10:22,400 Suze: You have to look at something and you have to 154 00:10:22,400 --> 00:10:26,280 Suze: have patience. Now you have heard me say over and 155 00:10:26,280 --> 00:10:30,599 Suze: over again that money that you need within 5 years, 156 00:10:30,719 --> 00:10:35,960 Suze: hopefully longer than 5 years, does not belong in the 157 00:10:35,960 --> 00:10:37,960 Suze: stock market. It does not. 158 00:10:38,599 --> 00:10:43,650 Suze: Because of things like this, anything can happen at any time. 159 00:10:43,820 --> 00:10:47,059 Suze: We can have another 9/11 here. We can have all 160 00:10:47,059 --> 00:10:50,710 Suze: kinds of things happen that could send this market all 161 00:10:50,710 --> 00:10:53,900 Suze: the way down, 50% down. 162 00:10:55,039 --> 00:10:58,979 Suze: And normally you know when something goes from 100 to 50, 163 00:10:59,229 --> 00:11:02,940 Suze: that's a 50% decline, but for it to go from 164 00:11:02,940 --> 00:11:06,869 Suze: 50 back up to 100 is a 100% increase, and 165 00:11:06,869 --> 00:11:11,909 Suze: that takes time. So normally when a market or a 166 00:11:11,909 --> 00:11:16,429 Suze: stock or something goes down significantly, it takes anywhere from 167 00:11:16,429 --> 00:11:20,229 Suze: 3 to 5 years for it to come back, and 168 00:11:20,229 --> 00:11:22,030 Suze: the longer time you have. 169 00:11:22,489 --> 00:11:25,750 Suze: The more money you're going to make when it does 170 00:11:25,750 --> 00:11:29,939 Suze: come back and good stocks always come back. 171 00:11:30,960 --> 00:11:32,880 Suze: So if you need this money, 172 00:11:34,020 --> 00:11:38,010 Suze: within 5 years, it does not belong in the stock market. 173 00:11:38,539 --> 00:11:41,900 Suze: If the fluctuations of this market or the stocks that 174 00:11:41,900 --> 00:11:44,820 Suze: you happen to be in, cause maybe you're only in 175 00:11:44,820 --> 00:11:47,409 Suze: NVIDIA or some of these stocks, which is a mistake, 176 00:11:47,460 --> 00:11:50,419 Suze: by the way, but let's just say that's true, and 177 00:11:50,419 --> 00:11:53,299 Suze: you are losing sleep, you are freaking out, you just 178 00:11:53,299 --> 00:11:57,969 Suze: can't stand it. You don't belong in the stock market either. 179 00:11:58,739 --> 00:12:01,159 Suze: The goal of money is what everybody? Let me hear 180 00:12:01,159 --> 00:12:03,950 Suze: you say it all at once. The goal of money 181 00:12:03,950 --> 00:12:07,200 Suze: is for you to be secure, and when you invest 182 00:12:07,200 --> 00:12:10,479 Suze: your money in a stock, it needs to make you 183 00:12:10,479 --> 00:12:11,520 Suze: feel secure. 184 00:12:12,109 --> 00:12:16,640 Suze: I feel secure with every single investment that I have, 185 00:12:16,809 --> 00:12:20,590 Suze: and when I don't feel secure with it, I sell 186 00:12:20,590 --> 00:12:24,799 Suze: it just that simple. It doesn't matter if I love it, 187 00:12:24,890 --> 00:12:28,440 Suze: if Keith loves it, if every analyst out there loves it, 188 00:12:28,469 --> 00:12:33,520 Suze: if you, it's your money. If you don't feel secure, 189 00:12:33,729 --> 00:12:37,729 Suze: then you have to sell, and there are so many 190 00:12:37,729 --> 00:12:39,400 Suze: great places for you - 191 00:12:40,080 --> 00:12:42,689 Suze: if you don't want to be in the stock market 192 00:12:42,690 --> 00:12:47,659 Suze: that you can be invested in, obviously I still like 193 00:12:47,659 --> 00:12:52,039 Suze: intermediate bonds. I don't like long term for right now 194 00:12:52,039 --> 00:12:54,609 Suze: I know you all think, but Suze used to love 195 00:12:54,609 --> 00:12:58,460 Suze: 20 and 30 year bonds, I know, until everything started 196 00:12:58,460 --> 00:12:59,140 Suze: to happen. 197 00:12:59,890 --> 00:13:03,770 Suze: And bonds started to react differently to interest rate moves 198 00:13:03,770 --> 00:13:08,409 Suze: than they ever did. And so therefore I really still 199 00:13:08,409 --> 00:13:11,809 Suze: like the 3 and the 5 and 7 year term 200 00:13:11,809 --> 00:13:18,919 Suze: if you're going into treasuries. I just do. I like that. Why? 201 00:13:19,090 --> 00:13:21,770 Suze: Because you can get a nice yield 4.5% or a 202 00:13:21,770 --> 00:13:23,640 Suze: little bit more right in there. 203 00:13:24,280 --> 00:13:27,890 Suze: And I like that because there is a slew of 204 00:13:27,890 --> 00:13:35,489 Suze: treasuries that are coming due where people got it at 0%, 0.5%, 205 00:13:35,500 --> 00:13:39,218 Suze: and they're coming due and I just think eventually the 206 00:13:39,219 --> 00:13:43,699 Suze: long end bond is going to go up and up 207 00:13:43,700 --> 00:13:47,699 Suze: again and then you'll hear me say, OK, now is 208 00:13:47,700 --> 00:13:48,449 Suze: the time. 209 00:13:48,929 --> 00:13:52,579 Suze: But I don't want your money invested long term if 210 00:13:52,580 --> 00:13:55,500 Suze: you don't plan to keep it in there for the 211 00:13:55,500 --> 00:13:59,020 Suze: entire 20 or 30 year maturity because chances are if 212 00:13:59,020 --> 00:14:00,260 Suze: you need your money. 213 00:14:01,580 --> 00:14:03,830 Suze: Unlike what I expected to happen. 214 00:14:04,710 --> 00:14:08,250 Suze: If you need your money, chances are you're going to 215 00:14:08,250 --> 00:14:11,169 Suze: sell at a loss. There will come a time again 216 00:14:11,169 --> 00:14:15,119 Suze: when the long term will be skyrocketed, in my opinion, 217 00:14:15,369 --> 00:14:19,929 Suze: but not now. So just keep your money relatively liquid 218 00:14:19,929 --> 00:14:25,520 Suze: for yourself in the intermediate term bonds in the treasury. 219 00:14:25,820 --> 00:14:29,039 Suze: I also think there are other things that you can 220 00:14:29,039 --> 00:14:33,719 Suze: invest in and especially right now I know a lot 221 00:14:33,719 --> 00:14:38,650 Suze: of you have money in CDs at Alliant Credit Union 222 00:14:38,840 --> 00:14:40,679 Suze: that are coming due. 223 00:14:41,429 --> 00:14:46,580 Suze: And luckily for you, Alliant Credit Union happened to increase 224 00:14:46,580 --> 00:14:49,570 Suze: their interest rates about 3 weeks ago. 225 00:14:50,469 --> 00:14:54,309 Suze: For those of you who have CDs coming due at 226 00:14:54,309 --> 00:14:58,429 Suze: Alliant Credit Union and you want to re up, I 227 00:14:58,429 --> 00:15:02,059 Suze: want you to re up for the 12 month one 228 00:15:02,510 --> 00:15:06,320 Suze: that currently is at 4.25%. 229 00:15:07,510 --> 00:15:14,609 Suze: For under 75,000. 4.30% for 75,000 or more, but I 230 00:15:14,609 --> 00:15:18,809 Suze: want you to listen to me. Remember Alliant does this 231 00:15:18,809 --> 00:15:23,280 Suze: crazy thing where when you do a 12 month, it 232 00:15:23,280 --> 00:15:27,049 Suze: can be 12 months, 13 months, 14 months, 15 months, 233 00:15:27,090 --> 00:15:33,039 Suze: 16 months, or 17 months for the exact same interest rate. 234 00:15:33,929 --> 00:15:38,080 Suze: So you could lock in for 17 months at that rate, 235 00:15:38,250 --> 00:15:40,770 Suze: and that is a great deal for those of you, 236 00:15:40,809 --> 00:15:44,799 Suze: by the way, who aren't invested yet with Alliant Credit Union. 237 00:15:45,049 --> 00:15:48,299 Suze: You would go to myalliant A L L I A 238 00:15:48,299 --> 00:15:53,049 Suze: N T.com and do either their Ultimate Opportunity Savings account, 239 00:15:53,090 --> 00:15:55,880 Suze: which is a fabulous deal, go there and learn about it, 240 00:15:56,130 --> 00:16:00,369 Suze: or their certificates of deposits. But for all of you 241 00:16:00,849 --> 00:16:03,640 Suze: who either want to invest in a CD. 242 00:16:04,299 --> 00:16:08,299 Suze: Or are having your CD there mature and you want 243 00:16:08,299 --> 00:16:11,340 Suze: to re up, I want you to re up for 244 00:16:11,340 --> 00:16:16,369 Suze: the 12 to 17 month you choose your maturity there. 245 00:16:16,780 --> 00:16:19,580 Suze: That's what I want you to do. 246 00:16:20,200 --> 00:16:23,489 Suze: So there are safe places for you to keep money. 247 00:16:23,940 --> 00:16:26,460 Suze: You can even keep it in a money market account 248 00:16:26,460 --> 00:16:30,020 Suze: at 4 some odd percent. They're out there, so you 249 00:16:30,020 --> 00:16:33,260 Suze: don't have to have money invested in the stock market 250 00:16:33,260 --> 00:16:38,500 Suze: if in fact that it scares you. However, for those 251 00:16:38,500 --> 00:16:42,219 Suze: of you who aren't invested in individual stocks. 252 00:16:43,030 --> 00:16:47,719 Suze: You're invested in the Standard and Poor's 500, the Spiders, 253 00:16:47,750 --> 00:16:51,979 Suze: for instance, simple SPY for the ETF. 254 00:16:52,789 --> 00:16:57,429 Suze: You've watched it go down greatly as well, and that 255 00:16:57,429 --> 00:17:00,590 Suze: scares you, and you don't know what to do and 256 00:17:00,590 --> 00:17:03,549 Suze: you're thinking about selling, and when you send me these 257 00:17:03,549 --> 00:17:06,188 Suze: emails that say, Suze, I think I'm going to sell 258 00:17:06,189 --> 00:17:10,229 Suze: my spiders. I'm like, No, you have to be invested 259 00:17:10,229 --> 00:17:14,060 Suze: in the market. Just keep dollar cost averaging in it. 260 00:17:14,270 --> 00:17:17,550 Suze: And one of you wrote me and you said Suze, 261 00:17:18,319 --> 00:17:21,800 Suze: isn't there something that I could buy the Standard and 262 00:17:21,800 --> 00:17:26,938 Suze: Poor's 500, and it's not as speculative as the spiders. 263 00:17:27,848 --> 00:17:32,729 Suze: So here is where I really wanna do a Suze school, 264 00:17:33,218 --> 00:17:38,328 Suze: and the Suze School is let's talk about the difference 265 00:17:38,898 --> 00:17:42,838 Suze: between a market weighted ETF 266 00:17:43,949 --> 00:17:50,218 Suze: and an equal weighted ETF. Now the Standard and Poor's 267 00:17:50,219 --> 00:17:55,180 Suze: Index is made up of 500 stocks. 268 00:17:55,920 --> 00:17:59,589 Suze: And those 500 stocks run the gamut, mid cap, so 269 00:17:59,589 --> 00:18:04,030 Suze: on and so forth. When you buy the spider, 270 00:18:04,890 --> 00:18:13,180 Suze: SPY that's known as a market weighted index that ETF 271 00:18:13,729 --> 00:18:19,530 Suze: and what market weighted means is that they weight the 272 00:18:19,530 --> 00:18:23,170 Suze: amount of money that they put into each stock based 273 00:18:23,170 --> 00:18:26,010 Suze: on their market capitalization. 274 00:18:26,869 --> 00:18:33,310 Suze: So the top 7 stocks of spiders SPY 275 00:18:34,469 --> 00:18:42,619 Suze: are of course your magnificent seven Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA, 276 00:18:42,630 --> 00:18:43,660 Suze: and Tesla. 277 00:18:44,449 --> 00:18:50,389 Suze: And those seven stocks make up 31% 278 00:18:51,420 --> 00:18:58,290 Suze: of the SPY because they are market weighted so when 279 00:18:58,290 --> 00:19:04,489 Suze: those stocks, all technology, go down, they crash of course 280 00:19:04,489 --> 00:19:11,770 Suze: your ETF, your SPY goes down big time as well, OK. 281 00:19:12,469 --> 00:19:18,239 Suze: So that's why that happens. However, there is what's known 282 00:19:18,410 --> 00:19:24,169 Suze: as an equal weighted ETF that invests in the Standard 283 00:19:24,170 --> 00:19:28,729 Suze: and Poor's 500 Index, and it's the Invesco ETF that's 284 00:19:28,729 --> 00:19:33,449 Suze: equal weighted, simple as RSP. 285 00:19:34,170 --> 00:19:41,040 Suze: OK, and that's a fund where all 500 stocks have 286 00:19:41,040 --> 00:19:47,890 Suze: equal weighting. So since there's essentially 500 stocks, each one 287 00:19:47,890 --> 00:19:52,489 Suze: of them has a 0.02% weighting. 288 00:19:53,689 --> 00:19:58,390 Suze: So it's not like 7 stocks make up 31%. So 289 00:19:58,390 --> 00:20:05,390 Suze: for instance, if those seven stocks that I just mentioned Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA, 290 00:20:05,430 --> 00:20:09,349 Suze: and Tesla were in the equal weighted 291 00:20:10,449 --> 00:20:11,750 Suze: ETF. 292 00:20:12,680 --> 00:20:16,399 Suze: They would have in total 0.02% of it in each 293 00:20:16,400 --> 00:20:20,089 Suze: one or a total of 0.14%. 294 00:20:20,670 --> 00:20:26,930 Suze: In all 7 versus 31% in the market weighted ETF, 295 00:20:27,540 --> 00:20:30,929 Suze: so when they went down this last week. 296 00:20:31,780 --> 00:20:38,069 Suze: The equal weighted ETF did not go down as much. 297 00:20:38,800 --> 00:20:42,619 Suze: So for those of you who still want to be 298 00:20:42,619 --> 00:20:47,260 Suze: invested in the market and you don't want those fluctuations 299 00:20:47,260 --> 00:20:53,329 Suze: with technology and everything, then start to invest your money 300 00:20:53,329 --> 00:20:59,140 Suze: in the RS like in Suze, P like in profit, right, 301 00:20:59,219 --> 00:21:07,050 Suze: RSP ETF. Now I personally love 302 00:21:07,369 --> 00:21:13,119 Suze: the SPY or the VTI. I like the market weighted 303 00:21:13,119 --> 00:21:18,930 Suze: ETFs cause I think in the long run, given where 304 00:21:18,930 --> 00:21:22,010 Suze: technology is going, a lot of you will probably make 305 00:21:22,010 --> 00:21:24,719 Suze: more money in that. However, 306 00:21:25,800 --> 00:21:28,879 Suze: For those of you who just want to stay invested, 307 00:21:29,199 --> 00:21:32,599 Suze: but you don't feel secure and you just want a 308 00:21:32,599 --> 00:21:38,959 Suze: truly diversified portfolio where everything is equal weighted and it's 309 00:21:38,959 --> 00:21:40,349 Suze: across the board. 310 00:21:41,239 --> 00:21:48,020 Suze: Then you should look into the RSP ETF. However, here's 311 00:21:48,020 --> 00:21:49,489 Suze: what you need to know. 312 00:21:50,599 --> 00:21:56,000 Suze: In the equal weighted ETF every single quarter. 313 00:21:56,760 --> 00:21:59,949 Suze: The fund needs to rebalance all of its stocks, so 314 00:21:59,949 --> 00:22:06,869 Suze: every quarter, to maintain that equal weighting. Therefore, their expense 315 00:22:06,869 --> 00:22:13,709 Suze: ratio is higher than the SPY. So for instance, the 316 00:22:13,709 --> 00:22:18,188 Suze: RSP's expense ratio is 0.20%. 317 00:22:18,800 --> 00:22:25,930 Suze: The SPY's expense ratio is 0.09% because they don't really 318 00:22:25,930 --> 00:22:29,689 Suze: have to do anything, so that's just something that you 319 00:22:29,689 --> 00:22:32,599 Suze: should know. So that's a little bit of a downside 320 00:22:32,810 --> 00:22:35,889 Suze: but not a big one if that's what you are 321 00:22:35,890 --> 00:22:37,010 Suze: looking for. 322 00:22:37,880 --> 00:22:41,550 Suze: So that's kind of what you need to know about 323 00:22:41,550 --> 00:22:44,359 Suze: the two just in case for those of you who 324 00:22:44,359 --> 00:22:49,160 Suze: are interested. Well, Suze, what happened this last month, just 325 00:22:49,160 --> 00:22:53,790 Suze: this last 29 days as of yesterday, right? What happened 326 00:22:53,959 --> 00:22:58,130 Suze: in terms of how did the RSP do versus the SPY? 327 00:22:58,640 --> 00:23:05,119 Suze: The SPY as of yesterday was up 1.60%. Not bad. 328 00:23:05,619 --> 00:23:12,449 Suze: For 29 days, the RSP, however, was up 2.67%. 329 00:23:13,219 --> 00:23:19,909 Suze: So there are times when the RSP can outperform the SPYs, 330 00:23:20,160 --> 00:23:24,640 Suze: and it just depends what's happening and what the trends are. Again, 331 00:23:24,760 --> 00:23:28,719 Suze: I'm just going to state I think long term the 332 00:23:28,719 --> 00:23:32,640 Suze: trend favors technology stocks. 333 00:23:33,369 --> 00:23:36,939 Suze: But you have to be willing to be on that trend, 334 00:23:37,180 --> 00:23:41,099 Suze: and if that trend makes you feel insecure, then that 335 00:23:41,099 --> 00:23:45,329 Suze: is not a trend that you should be on, just 336 00:23:45,329 --> 00:23:49,889 Suze: that simple, OK, everybody, I do just want to say 337 00:23:49,890 --> 00:23:56,579 Suze: that in 2024, just out of curiosity, the SPYs, I'll 338 00:23:56,579 --> 00:23:59,569 Suze: perform the RSPs by 12.4%. 339 00:24:00,109 --> 00:24:05,189 Suze: So depending on the trend, it can absolutely make a difference. 340 00:24:06,180 --> 00:24:09,290 Suze: Those are the things that I want you to know. 341 00:24:11,020 --> 00:24:15,079 Suze: What are the rules of investing, especially in this kind 342 00:24:15,079 --> 00:24:15,869 Suze: of market? 343 00:24:16,849 --> 00:24:24,680 Suze: The rules of investing are dollar cost averaging or value 344 00:24:24,680 --> 00:24:28,319 Suze: cost averaging, and maybe next week I'm going to give 345 00:24:28,319 --> 00:24:33,359 Suze: you a Suze School on value cost averaging and how 346 00:24:33,359 --> 00:24:37,430 Suze: it differs than dollar cost averaging so you really get 347 00:24:37,430 --> 00:24:39,198 Suze: the difference between the two. 348 00:24:40,140 --> 00:24:42,300 Suze: But this is not the market. 349 00:24:43,000 --> 00:24:45,550 Suze: That you go in and you just put all your 350 00:24:45,550 --> 00:24:48,669 Suze: money in and then that's that. This is a market 351 00:24:48,670 --> 00:24:52,030 Suze: that you go in little by little you keep cash 352 00:24:52,030 --> 00:24:56,349 Suze: on the sideline when opportunity strikes, you take advantage of 353 00:24:56,349 --> 00:24:59,839 Suze: it if you feel secure doing that, and you have 354 00:24:59,839 --> 00:25:04,750 Suze: faith in the stocks that you are invested in. 355 00:25:05,369 --> 00:25:09,479 Suze: I still have faith in NVIDIA. I still have faith 356 00:25:09,479 --> 00:25:13,329 Suze: in Palantair. I still have faith in the stocks and 357 00:25:13,329 --> 00:25:17,170 Suze: the ETFs that I've talked to you about, and of 358 00:25:17,170 --> 00:25:19,010 Suze: course they're going to go down. 359 00:25:19,930 --> 00:25:24,129 Suze: When things like this happen, but of course they're gonna 360 00:25:24,130 --> 00:25:29,609 Suze: go up eventually, so I hope that's calmed you down 361 00:25:29,609 --> 00:25:30,920 Suze: on some level. 362 00:25:31,650 --> 00:25:36,810 Suze: But until Sunday when Miss Travis joins us, there's only 363 00:25:36,810 --> 00:25:40,910 Suze: one thing that I want you to remember, and that's 364 00:25:40,910 --> 00:25:44,609 Suze: people first, and that means you, everybody. You have to 365 00:25:44,609 --> 00:25:48,130 Suze: know how you feel, think, and therefore how you want 366 00:25:48,130 --> 00:25:52,579 Suze: to act with your money. So people first, then you'll 367 00:25:52,579 --> 00:25:54,410 Suze: know what to do with your money. 368 00:25:54,900 --> 00:26:00,208 Suze: And then things. So until then there's only one thing 369 00:26:00,209 --> 00:26:04,319 Suze: I want you to remember, and that is this. Together we will rise.