Speaker 1: We are
Suze: January 30th, 2025. Welcome everybody to the Women and Money podcast,
Suze: as well as everybody smart enough to listen.
Suze: And today is going to be Suze School and Sunday
Suze: is going to be Ask KT and Suze anything. We're
Suze: doing a little switcherunio here. I kind of like that
Suze: switcherunio anyway.
Suze: And the reason is because so many of you are
Suze: freaked out about what happened in the stock market a
Suze: few days ago when all of a sudden all your sweethearts,
Suze: the magnificent seven, your future that you thought you were
Suze: going to make a fortune on and you loved watching
Suze: go up and up and up and up all of
Suze: a sudden tanked.
Suze: And now you are just depressed. You don't know what
Suze: to do. You've been writing me. I've been getting more
Suze: emails than ever before about: Suze, Suze, what should we do?
Suze: Should we sell NVIDIA? Should we sell this? Should we
Suze: sell that? And I thought, I got to do something
Suze: about this. So Suze School is now in session. Before
Suze: we get to the stock market, however,
Suze: I think it's important to recognize what happened at the
Suze: Fed meeting yesterday where the Fed funds rate were left
Suze: the same.
Suze: And personally I think it will be absolutely amazing if
Suze: in this entire year of 2025 we get one more
Suze: rate cut, maybe two, but I doubt it, but absolutely
Suze: no more than 2.
Suze: So things are kind of strange that way when we
Suze: were expecting they were going to cut rates, and then
Suze: when you heard him announce it yesterday, you saw the
Suze: market start to go down, you saw all kinds of
Suze: things start to happen, but what happened really that affected
Suze: many of you, especially if you want to buy a home,
Suze: is you saw the 10 year interest rate on the
Suze: 10 year treasury tick up.
Suze: And as I've told you many, many times, mortgages are
Suze: directly attached to the 10 year treasury. So for those
Suze: of you who were hoping that interest rates were going
Suze: to be coming down for mortgages, I don't think your
Suze: hope is going to be answered.
Suze: Mortgages are around 7% right now, and I think they're
Suze: going to stay at around 7% here for quite a while.
Suze: So what does that mean also for those of you
Suze: who are thinking about buying? If I were going to
Suze: be buying real estate right now and I had to
Suze: take out a mortgage.
Suze: I have to tell you, I think I would probably
Suze: wait till about September to do so. I would not
Suze: be rushing to go ahead and buy right now at
Suze: a 7% interest rate. Just saying. Maybe I'm wrong. Who knows?
Suze: Maybe you can get a steal of a deal, and
Suze: it makes sense for you to do it right now.
Suze: But if you're not in a serious hurry,
Suze: you might want to just wait. For those of you
Suze: who are selling, well, your 3% interest rate that you
Suze: probably locked in years ago is still looking better, is
Suze: it not than ever? So if you have to sell
Suze: and buy something else and you need to get a
Suze: new mortgage, you might want to think about it as well,
Suze: just saying. That's real estate.
Suze: So now let's talk about the stock market. Did I
Suze: not say a while ago that this was going to
Suze: be a very volatile year, and I could swear that
Suze: I probably just did a podcast on this not so
Suze: long ago where I repeated that I had said that.
Suze: And did I not say to you, so you have
Suze: to prepare for the ups and the downs, and you
Suze: have to take advantage when things go down if you're
Suze: in this for the long run and if you know
Suze: that you are invested in great quality stocks. Now I
Suze: get that they came out the other day and they
Suze: freaked everybody out with this DeepSeek new AI that China
Suze: has come out with.
Suze: And that is the reason that everything went down, especially
Suze: the technology stocks, because China was able to do something
Suze: for a fraction of the cost of doing it here
Suze: in the United States.
Suze: Now everybody's thinking they're going to stop buying NVIDIA chips.
Suze: Oh my God, it's over here. Just stop. The other
Suze: day KT said, Suze, did you download the app DeepSeek?
Suze: And I looked at her and I said, Are you
Suze: out of your mind? And she said, Why? I said, KT,
Suze: everybody is having a fight right now over TikTok, and
Suze: why are they doing that? Because China has made it
Suze: so that everybody that's on that app, they are gathering
Suze: the information. They are finding out everything about them. They're
Suze: recording every keystroke, everything that they do. And now the
Suze: government wants them to sell TikTok to somebody or they're
Suze: going to close them down.
Suze: I said, do you think for a second that DeepSeek
Suze: isn't exactly the same?
Suze: So there is no way that I am going to
Suze: download this app.
Suze: And probably all the information that everybody is using on it,
Suze: the questions that they're asking, everything is going to be
Suze: gathered and somehow be weaponized against the United States. Now
Suze: call me crazy.
Suze: Call me paranoid or call me realistic, but I don't
Suze: need DeepSeek because there are so many great AI apps
Suze: right here in the United States. Listen, they don't cost
Suze: you anything. Most of them are free. So why do
Suze: you care if you go on an AI app that
Suze: costs a fraction of what it takes to make? Why
Suze: do you care?
Suze: You're just curious about giving all your information away, so
Suze: I am giving you my personal warning. I would stay
Suze: as far away from DeepSeek as I possibly can. Now,
Suze: even with that said.
Suze: How do I think that is going to affect NVIDIA
Suze: and all the other AI stocks in the long run,
Suze: I don't think so, not at all. Yeah, it's freaky
Suze: to think that everybody's spending more money than they need
Suze: to be spending.
Suze: But I don't think that it's really going to disrupt
Suze: the brilliance behind some of the AI stocks here in
Suze: the United States, especially NVIDIA. They already can't fulfill most
Suze: of the orders, if not all of them, that they have,
Suze: so I would not be freaking out. I would not
Suze: be selling in particular my NVIDIA stock here.
Suze: I would, however, be prepared that it could go lower
Suze: and to dollar cost average into it if I were you,
Suze: I would put a low ball offer at about $110
Suze: a share, about $10 under where it's trading right now.
Suze: And if you want more, let's just see if it
Suze: goes down there and you can pick some up at
Suze: a really great price.
Suze: But you have all really got to remember.
Suze: Are you an investor or are you a speculator?
Suze: And if you're speculating, OK, buy sell buy sell, but
Suze: if you're an investor, you have to wait for the
Suze: long run for the true results to come in. A
Suze: friend of mine emailed me the other day and said,
Suze: I'm so afraid I can't stand watching my profits go
Suze: down the drain. I think I'm going to sell NVIDIA.
Suze: And then NVIDIA went up shortly after that, and I
Suze: wrote him and I said, well, did you sell? And
Suze: he said, No, no. I said, are you glad you
Suze: didn't sell? And he said, Yes. And I said, you
Suze: have to understand the role that emotions play in investing.
Suze: Now I'm sure he's absolutely freaked again that he didn't sell.
Suze: But if you love a stock.
Suze: And the stock itself really is a solid good stock.
Suze: And the whole future,
Suze: it is all about AI and where the growth is
Suze: really going to come from in the future, then you
Suze: stick with it. So many of you are so fickle,
Suze: especially with the stock Apple, which you know is one
Suze: of my favorite stocks, because it hasn't really been participating
Suze: and it's just kind of doing its thing. You give
Suze: up hope on it and it's like, why do you
Suze: do that, everybody.
Suze: You have to look at something and you have to
Suze: have patience. Now you have heard me say over and
Suze: over again that money that you need within 5 years,
Suze: hopefully longer than 5 years, does not belong in the
Suze: stock market. It does not.
Suze: Because of things like this, anything can happen at any time.
Suze: We can have another 9/11 here. We can have all
Suze: kinds of things happen that could send this market all
Suze: the way down, 50% down.
Suze: And normally you know when something goes from 100 to 50,
Suze: that's a 50% decline, but for it to go from
Suze: 50 back up to 100 is a 100% increase, and
Suze: that takes time. So normally when a market or a
Suze: stock or something goes down significantly, it takes anywhere from
Suze: 3 to 5 years for it to come back, and
Suze: the longer time you have.
Suze: The more money you're going to make when it does
Suze: come back and good stocks always come back.
Suze: So if you need this money,
Suze: within 5 years, it does not belong in the stock market.
Suze: If the fluctuations of this market or the stocks that
Suze: you happen to be in, cause maybe you're only in
Suze: NVIDIA or some of these stocks, which is a mistake,
Suze: by the way, but let's just say that's true, and
Suze: you are losing sleep, you are freaking out, you just
Suze: can't stand it. You don't belong in the stock market either.
Suze: The goal of money is what everybody? Let me hear
Suze: you say it all at once. The goal of money
Suze: is for you to be secure, and when you invest
Suze: your money in a stock, it needs to make you
Suze: feel secure.
Suze: I feel secure with every single investment that I have,
Suze: and when I don't feel secure with it, I sell
Suze: it just that simple. It doesn't matter if I love it,
Suze: if Keith loves it, if every analyst out there loves it,
Suze: if you, it's your money. If you don't feel secure,
Suze: then you have to sell, and there are so many
Suze: great places for you -
Suze: if you don't want to be in the stock market
Suze: that you can be invested in, obviously I still like
Suze: intermediate bonds. I don't like long term for right now
Suze: I know you all think, but Suze used to love
Suze: 20 and 30 year bonds, I know, until everything started
Suze: to happen.
Suze: And bonds started to react differently to interest rate moves
Suze: than they ever did. And so therefore I really still
Suze: like the 3 and the 5 and 7 year term
Suze: if you're going into treasuries. I just do. I like that. Why?
Suze: Because you can get a nice yield 4.5% or a
Suze: little bit more right in there.
Suze: And I like that because there is a slew of
Suze: treasuries that are coming due where people got it at 0%, 0.5%,
Suze: and they're coming due and I just think eventually the
Suze: long end bond is going to go up and up
Suze: again and then you'll hear me say, OK, now is
Suze: the time.
Suze: But I don't want your money invested long term if
Suze: you don't plan to keep it in there for the
Suze: entire 20 or 30 year maturity because chances are if
Suze: you need your money.
Suze: Unlike what I expected to happen.
Suze: If you need your money, chances are you're going to
Suze: sell at a loss. There will come a time again
Suze: when the long term will be skyrocketed, in my opinion,
Suze: but not now. So just keep your money relatively liquid
Suze: for yourself in the intermediate term bonds in the treasury.
Suze: I also think there are other things that you can
Suze: invest in and especially right now I know a lot
Suze: of you have money in CDs at Alliant Credit Union
Suze: that are coming due.
Suze: And luckily for you, Alliant Credit Union happened to increase
Suze: their interest rates about 3 weeks ago.
Suze: For those of you who have CDs coming due at
Suze: Alliant Credit Union and you want to re up, I
Suze: want you to re up for the 12 month one
Suze: that currently is at 4.25%.
Suze: For under 75,000. 4.30% for 75,000 or more, but I
Suze: want you to listen to me. Remember Alliant does this
Suze: crazy thing where when you do a 12 month, it
Suze: can be 12 months, 13 months, 14 months, 15 months,
Suze: 16 months, or 17 months for the exact same interest rate.
Suze: So you could lock in for 17 months at that rate,
Suze: and that is a great deal for those of you,
Suze: by the way, who aren't invested yet with Alliant Credit Union.
Suze: You would go to myalliant A L L I A
Suze: N T.com and do either their Ultimate Opportunity Savings account,
Suze: which is a fabulous deal, go there and learn about it,
Suze: or their certificates of deposits. But for all of you
Suze: who either want to invest in a CD.
Suze: Or are having your CD there mature and you want
Suze: to re up, I want you to re up for
Suze: the 12 to 17 month you choose your maturity there.
Suze: That's what I want you to do.
Suze: So there are safe places for you to keep money.
Suze: You can even keep it in a money market account
Suze: at 4 some odd percent. They're out there, so you
Suze: don't have to have money invested in the stock market
Suze: if in fact that it scares you. However, for those
Suze: of you who aren't invested in individual stocks.
Suze: You're invested in the Standard and Poor's 500, the Spiders,
Suze: for instance, simple SPY for the ETF.
Suze: You've watched it go down greatly as well, and that
Suze: scares you, and you don't know what to do and
Suze: you're thinking about selling, and when you send me these
Suze: emails that say, Suze, I think I'm going to sell
Suze: my spiders. I'm like, No, you have to be invested
Suze: in the market. Just keep dollar cost averaging in it.
Suze: And one of you wrote me and you said Suze,
Suze: isn't there something that I could buy the Standard and
Suze: Poor's 500, and it's not as speculative as the spiders.
Suze: So here is where I really wanna do a Suze school,
Suze: and the Suze School is let's talk about the difference
Suze: between a market weighted ETF
Suze: and an equal weighted ETF. Now the Standard and Poor's
Suze: Index is made up of 500 stocks.
Suze: And those 500 stocks run the gamut, mid cap, so
Suze: on and so forth. When you buy the spider,
Suze: SPY that's known as a market weighted index that ETF
Suze: and what market weighted means is that they weight the
Suze: amount of money that they put into each stock based
Suze: on their market capitalization.
Suze: So the top 7 stocks of spiders SPY
Suze: are of course your magnificent seven Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA,
Suze: and Tesla.
Suze: And those seven stocks make up 31%
Suze: of the SPY because they are market weighted so when
Suze: those stocks, all technology, go down, they crash of course
Suze: your ETF, your SPY goes down big time as well, OK.
Suze: So that's why that happens. However, there is what's known
Suze: as an equal weighted ETF that invests in the Standard
Suze: and Poor's 500 Index, and it's the Invesco ETF that's
Suze: equal weighted, simple as RSP.
Suze: OK, and that's a fund where all 500 stocks have
Suze: equal weighting. So since there's essentially 500 stocks, each one
Suze: of them has a 0.02% weighting.
Suze: So it's not like 7 stocks make up 31%. So
Suze: for instance, if those seven stocks that I just mentioned Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA,
Suze: and Tesla were in the equal weighted
Suze: ETF.
Suze: They would have in total 0.02% of it in each
Suze: one or a total of 0.14%.
Suze: In all 7 versus 31% in the market weighted ETF,
Suze: so when they went down this last week.
Suze: The equal weighted ETF did not go down as much.
Suze: So for those of you who still want to be
Suze: invested in the market and you don't want those fluctuations
Suze: with technology and everything, then start to invest your money
Suze: in the RS like in Suze, P like in profit, right,
Suze: RSP ETF. Now I personally love
Suze: the SPY or the VTI. I like the market weighted
Suze: ETFs cause I think in the long run, given where
Suze: technology is going, a lot of you will probably make
Suze: more money in that. However,
Suze: For those of you who just want to stay invested,
Suze: but you don't feel secure and you just want a
Suze: truly diversified portfolio where everything is equal weighted and it's
Suze: across the board.
Suze: Then you should look into the RSP ETF. However, here's
Suze: what you need to know.
Suze: In the equal weighted ETF every single quarter.
Suze: The fund needs to rebalance all of its stocks, so
Suze: every quarter, to maintain that equal weighting. Therefore, their expense
Suze: ratio is higher than the SPY. So for instance, the
Suze: RSP's expense ratio is 0.20%.
Suze: The SPY's expense ratio is 0.09% because they don't really
Suze: have to do anything, so that's just something that you
Suze: should know. So that's a little bit of a downside
Suze: but not a big one if that's what you are
Suze: looking for.
Suze: So that's kind of what you need to know about
Suze: the two just in case for those of you who
Suze: are interested. Well, Suze, what happened this last month, just
Suze: this last 29 days as of yesterday, right? What happened
Suze: in terms of how did the RSP do versus the SPY?
Suze: The SPY as of yesterday was up 1.60%. Not bad.
Suze: For 29 days, the RSP, however, was up 2.67%.
Suze: So there are times when the RSP can outperform the SPYs,
Suze: and it just depends what's happening and what the trends are. Again,
Suze: I'm just going to state I think long term the
Suze: trend favors technology stocks.
Suze: But you have to be willing to be on that trend,
Suze: and if that trend makes you feel insecure, then that
Suze: is not a trend that you should be on, just
Suze: that simple, OK, everybody, I do just want to say
Suze: that in 2024, just out of curiosity, the SPYs, I'll
Suze: perform the RSPs by 12.4%.
Suze: So depending on the trend, it can absolutely make a difference.
Suze: Those are the things that I want you to know.
Suze: What are the rules of investing, especially in this kind
Suze: of market?
Suze: The rules of investing are dollar cost averaging or value
Suze: cost averaging, and maybe next week I'm going to give
Suze: you a Suze School on value cost averaging and how
Suze: it differs than dollar cost averaging so you really get
Suze: the difference between the two.
Suze: But this is not the market.
Suze: That you go in and you just put all your
Suze: money in and then that's that. This is a market
Suze: that you go in little by little you keep cash
Suze: on the sideline when opportunity strikes, you take advantage of
Suze: it if you feel secure doing that, and you have
Suze: faith in the stocks that you are invested in.
Suze: I still have faith in NVIDIA. I still have faith
Suze: in Palantair. I still have faith in the stocks and
Suze: the ETFs that I've talked to you about, and of
Suze: course they're going to go down.
Suze: When things like this happen, but of course they're gonna
Suze: go up eventually, so I hope that's calmed you down
Suze: on some level.
Suze: But until Sunday when Miss Travis joins us, there's only
Suze: one thing that I want you to remember, and that's
Suze: people first, and that means you, everybody. You have to
Suze: know how you feel, think, and therefore how you want
Suze: to act with your money. So people first, then you'll
Suze: know what to do with your money.
Suze: And then things. So until then there's only one thing
Suze: I want you to remember, and that is this. Together we will rise.