1 00:00:29,079 --> 00:00:36,750 Suze: December 17th, 2023 Suze O here and welcome everybody to 2 00:00:36,759 --> 00:00:39,869 Suze: the Women and Money podcast as well as everybody smart 3 00:00:39,880 --> 00:00:48,229 Suze: enough to listen. Eight days before Christmas, we are almost there. 4 00:00:49,040 --> 00:00:53,459 Suze: But where we are right now is we are actually 5 00:00:53,470 --> 00:00:59,849 Suze: celebrating big time or you should be because last Wednesday 6 00:01:00,520 --> 00:01:08,300 Suze: on December 13th, the Feds pivoted. They finally have changed 7 00:01:08,309 --> 00:01:09,620 Suze: their stance. 8 00:01:10,569 --> 00:01:13,519 Suze: They are saying interest rates are coming down 9 00:01:14,230 --> 00:01:17,470 Suze: and why are they coming down? They are coming down 10 00:01:17,480 --> 00:01:23,809 Suze: because inflation is coming down now, even though they don't 11 00:01:23,819 --> 00:01:29,190 Suze: expect to decrease interest rates until sometime next year, 12 00:01:30,449 --> 00:01:33,230 Suze: they are still coming down. 13 00:01:33,980 --> 00:01:40,300 Suze: Now, what that means is as you probably saw on Wednesday, 14 00:01:40,309 --> 00:01:44,779 Suze: if you are watching that, the Dow Jones Industrial average, 15 00:01:44,790 --> 00:01:49,349 Suze: which was essentially flat. Remember the Dow Jones industrial average 16 00:01:49,370 --> 00:01:53,199 Suze: is one of the index that has approximately 30 stocks 17 00:01:53,209 --> 00:01:56,559 Suze: in it that are all industrial stocks and they're a 18 00:01:56,569 --> 00:01:59,879 Suze: major indicator of what the stock market is doing 19 00:02:01,279 --> 00:02:02,699 Suze: really was flat. 20 00:02:03,519 --> 00:02:07,970 Suze: After Jay Powell, the fed chair started to speak and 21 00:02:07,980 --> 00:02:14,779 Suze: tell everybody his new stance on things. It skyrocketed and 22 00:02:14,788 --> 00:02:18,269 Suze: it skyrocketed. Like I haven't seen it really move in 23 00:02:18,279 --> 00:02:23,350 Suze: a long, long time and it went all the way 24 00:02:23,360 --> 00:02:23,779 Suze: up 25 00:02:24,309 --> 00:02:31,589 Suze: 512 points to 37,090 which is where it closed, which 26 00:02:31,600 --> 00:02:36,538 Suze: is the highest it has ever been in the history 27 00:02:36,550 --> 00:02:39,770 Suze: of the Dow Jones Industrial Index. 28 00:02:40,520 --> 00:02:45,600 Suze: But what it also shows us that my instructions to 29 00:02:45,610 --> 00:02:46,139 Suze: you 30 00:02:46,830 --> 00:02:50,059 Suze: to stop going short term and I gave you those 31 00:02:50,070 --> 00:02:55,309 Suze: instructions a long time ago. Now start thinking longer term 32 00:02:55,320 --> 00:02:59,929 Suze: with your treasuries or your CDs three months and six 33 00:02:59,940 --> 00:03:03,630 Suze: months are not where I want you to invest. Remember 34 00:03:03,639 --> 00:03:08,259 Suze: how I started to say move out longer term, whether 35 00:03:08,270 --> 00:03:11,960 Suze: it was two years, five years and then there came 36 00:03:11,970 --> 00:03:13,609 Suze: a point where it was 37 00:03:14,288 --> 00:03:20,830 Suze: 20 years and 30 years and start investing longer term. 38 00:03:21,630 --> 00:03:24,478 Suze: In fact, I asked all of you to do what 39 00:03:24,490 --> 00:03:29,490 Suze: was called a Barbell approach and a Barbell approach is 40 00:03:29,500 --> 00:03:35,100 Suze: that the money that you want invested in bonds that 41 00:03:35,110 --> 00:03:38,429 Suze: you do some maybe 3 to 5 years, maybe two 42 00:03:38,440 --> 00:03:42,360 Suze: years on one end and on the other end, you 43 00:03:42,369 --> 00:03:47,910 Suze: do longer term bonds, which happens to be 10, 20 or 44 00:03:47,919 --> 00:03:49,220 Suze: 30 years. 45 00:03:50,149 --> 00:03:53,279 Suze: And if you had done that, even though it was 46 00:03:53,289 --> 00:03:56,119 Suze: just with a little bit of money, 47 00:03:57,250 --> 00:04:02,259 Suze: you would be up considerably right now, especially on the 48 00:04:02,270 --> 00:04:04,750 Suze: long end of those bonds. 49 00:04:05,789 --> 00:04:07,889 Suze: I need you to listen to me now. 50 00:04:08,679 --> 00:04:13,220 Suze: I do think that interest rates are absolutely going to 51 00:04:13,229 --> 00:04:15,580 Suze: continue to come down. 52 00:04:16,290 --> 00:04:20,868 Suze: I think it is very possible and probable that sometime 53 00:04:20,880 --> 00:04:25,839 Suze: next year you will see the 10 year treasury note 54 00:04:25,988 --> 00:04:29,709 Suze: in the low 3% range. 55 00:04:30,399 --> 00:04:35,779 Suze: And you need to remember that mortgages are attached to 56 00:04:35,790 --> 00:04:39,988 Suze: what the 10 year treasury, if the 10 year treasury 57 00:04:40,000 --> 00:04:44,579 Suze: interest goes down, mortgages tend to follow and go down. 58 00:04:44,630 --> 00:04:48,359 Suze: If it goes up in interest rate, mortgages tend to 59 00:04:48,369 --> 00:04:51,899 Suze: follow as well. So if you are thinking 60 00:04:52,510 --> 00:04:57,809 Suze: about either refinancing or buying a house or whatever it 61 00:04:57,820 --> 00:05:01,329 Suze: may be, if I were you, I would wait, I 62 00:05:01,339 --> 00:05:06,070 Suze: would not be purchasing right now unless I had a 63 00:05:06,079 --> 00:05:11,519 Suze: steal of a deal. And if you are thinking that 64 00:05:11,529 --> 00:05:15,049 Suze: maybe one day you would like to sell, but you 65 00:05:15,059 --> 00:05:17,350 Suze: don't want to sell because you don't want to buy 66 00:05:17,359 --> 00:05:20,700 Suze: another house at twice the interest rate that maybe you're 67 00:05:20,709 --> 00:05:21,659 Suze: currently paying. 68 00:05:21,910 --> 00:05:27,880 Suze: I think you will have your chance sometime in 2024. 69 00:05:27,940 --> 00:05:31,089 Suze: So I think all of you need to be patient 70 00:05:31,910 --> 00:05:38,209 Suze: back to bonds. However, now listen closely last Sunday's podcast. 71 00:05:38,809 --> 00:05:43,678 Suze: I said that there were $6 trillion in money market 72 00:05:43,690 --> 00:05:49,079 Suze: funds and short term tea bills and that as interest 73 00:05:49,089 --> 00:05:51,450 Suze: rates start to go down. 74 00:05:52,100 --> 00:05:55,100 Suze: And now a lot of those bills or money have 75 00:05:55,109 --> 00:05:55,839 Suze: matured 76 00:05:56,459 --> 00:06:01,669 Suze: and interest rates are a lot lower than where they were. That, 77 00:06:01,678 --> 00:06:08,058 Suze: that money will now start to move into stocks. What 78 00:06:08,070 --> 00:06:13,738 Suze: kind of stocks, high dividend yielding stocks. But I wanna 79 00:06:13,750 --> 00:06:16,679 Suze: be clear in what I mean, 80 00:06:18,140 --> 00:06:21,399 Suze: the money that is in short term t bills and 81 00:06:21,410 --> 00:06:26,019 Suze: money market funds usually is money that you are getting 82 00:06:26,029 --> 00:06:30,079 Suze: a great yield without any risk whatsoever on it. 83 00:06:31,320 --> 00:06:36,019 Suze: That money is not going to pour into the stock 84 00:06:36,029 --> 00:06:36,899 Suze: market 85 00:06:37,779 --> 00:06:42,829 Suze: in technology, stocks and stocks that are speculative that money, 86 00:06:43,790 --> 00:06:47,760 Suze: some of it may go there. But that money either 87 00:06:47,869 --> 00:06:52,859 Suze: will go into high yield dividend, paying stocks for some 88 00:06:52,869 --> 00:06:56,660 Suze: of it so that the yield can stay the same 89 00:06:56,670 --> 00:06:59,540 Suze: and maybe people can get some growth on their money, 90 00:07:00,230 --> 00:07:05,450 Suze: but it is probable that the majority of it is 91 00:07:05,459 --> 00:07:11,609 Suze: going to go into bonds. So the rise in the 92 00:07:11,619 --> 00:07:16,609 Suze: bond market is not over yet. So, no, you have 93 00:07:16,619 --> 00:07:19,209 Suze: not missed it. Do you understand that? 94 00:07:20,070 --> 00:07:23,250 Suze: Because people are still going to be looking for a 95 00:07:23,260 --> 00:07:26,510 Suze: safe place to put their money and if they could 96 00:07:26,519 --> 00:07:31,269 Suze: put it in a longer term bond, they most certainly will. 97 00:07:31,779 --> 00:07:37,390 Suze: If they go ahead and they buy bonds, then they're 98 00:07:37,399 --> 00:07:40,450 Suze: bringing the price of the bond up. And when the 99 00:07:40,459 --> 00:07:46,619 Suze: price goes up, the yield will go down as yields 100 00:07:46,630 --> 00:07:47,799 Suze: go down. 101 00:07:48,500 --> 00:07:53,239 Suze: If you're already in those bonds, then your price of 102 00:07:53,250 --> 00:07:57,559 Suze: the bonds that you have will again go up. 103 00:07:58,549 --> 00:07:59,600 Suze: However, 104 00:08:00,500 --> 00:08:03,220 Suze: the other day I got an email or maybe it 105 00:08:03,230 --> 00:08:07,000 Suze: was on the Women and Money app where somebody said, Suze, 106 00:08:07,010 --> 00:08:13,119 Suze: I just sold all of my series I bonds. Now, 107 00:08:13,130 --> 00:08:17,279 Suze: should I buy 30 year bonds with all of that money? 108 00:08:17,529 --> 00:08:19,399 Suze: And I said no. 109 00:08:20,130 --> 00:08:23,709 Suze: And the reason I hope you're listening, if in fact, 110 00:08:23,720 --> 00:08:26,410 Suze: you were the one who wrote that question, maybe you're 111 00:08:26,420 --> 00:08:27,910 Suze: puzzled why I said no 112 00:08:28,609 --> 00:08:33,630 Suze: is because no matter what I am telling you that 113 00:08:33,640 --> 00:08:36,030 Suze: I think you should invest in, 114 00:08:37,169 --> 00:08:40,789 Suze: you are not to take all of your money that 115 00:08:40,799 --> 00:08:44,249 Suze: you did something with or that you have to invest 116 00:08:44,448 --> 00:08:50,718 Suze: and put it all into a particular investment. The only 117 00:08:50,729 --> 00:08:54,828 Suze: way in my opinion that you should be investing during 118 00:08:54,838 --> 00:09:00,018 Suze: these times is little by little. That's why I said 119 00:09:00,028 --> 00:09:01,778 Suze: to you, if you remember 120 00:09:02,690 --> 00:09:06,640 Suze: that when I started to buy 30 year treasury bonds, 121 00:09:06,750 --> 00:09:12,239 Suze: they were at 4% then 4.2 then 4.3 then on 122 00:09:12,250 --> 00:09:14,190 Suze: and on and then 5%. 123 00:09:15,179 --> 00:09:17,530 Suze: But I didn't take all my money and put them 124 00:09:17,539 --> 00:09:20,940 Suze: in at 5% because I didn't know what if they 125 00:09:20,950 --> 00:09:28,218 Suze: had gone to 5.6%. 6%. 7%. Anything is possible. I 126 00:09:28,229 --> 00:09:32,719 Suze: remember when 30 year bonds were up at 14%. 127 00:09:33,650 --> 00:09:39,219 Suze: So I've learned that in times like this where anything 128 00:09:39,229 --> 00:09:43,069 Suze: in the world could happen at any moment and you know, 129 00:09:43,080 --> 00:09:44,309 Suze: that is true 130 00:09:45,369 --> 00:09:50,669 Suze: that you're far better off just going easy and going 131 00:09:50,679 --> 00:09:54,250 Suze: little by little into an investment. 132 00:09:55,059 --> 00:09:59,679 Suze: The same is true with the stocks that I talk about. 133 00:10:00,320 --> 00:10:04,260 Suze: First of all, none of you should be investing in 134 00:10:04,270 --> 00:10:10,809 Suze: the stock market with money that you need within five years. 135 00:10:11,710 --> 00:10:14,859 Suze: You do not put money in the stock market just 136 00:10:14,869 --> 00:10:17,710 Suze: to make a quick gain and you're in there for 137 00:10:17,719 --> 00:10:19,909 Suze: one year or two years and then you need the 138 00:10:19,919 --> 00:10:23,179 Suze: money and then you have to sell, possibly you're selling 139 00:10:23,190 --> 00:10:26,570 Suze: when the markets are down. So any money that you 140 00:10:26,580 --> 00:10:30,760 Suze: put into the stock market is money that you absolutely 141 00:10:30,770 --> 00:10:34,489 Suze: do not need for at least five years or longer. 142 00:10:34,500 --> 00:10:36,010 Suze: Do you hear me 143 00:10:36,510 --> 00:10:41,169 Suze: next again? Any money that you put into a stock 144 00:10:41,179 --> 00:10:44,609 Suze: or an ETF that at least I talk about with you, 145 00:10:45,630 --> 00:10:49,608 Suze: you have to do it on a dollar cost averaging basis. 146 00:10:50,119 --> 00:10:54,770 Suze: So remember you are the one who needs to decide 147 00:10:54,869 --> 00:10:59,989 Suze: how much money you want to put in one particular 148 00:11:00,000 --> 00:11:05,200 Suze: ETF one particular stock, whatever it may be. 149 00:11:05,880 --> 00:11:09,960 Suze: Once you have decided on that amount of money for 150 00:11:09,969 --> 00:11:12,460 Suze: that particular investment, 151 00:11:13,130 --> 00:11:17,549 Suze: then you need to dollar cost average into that investment 152 00:11:17,809 --> 00:11:22,500 Suze: over at least one year period of time. 153 00:11:23,840 --> 00:11:28,099 Suze: So therefore you have $1200 you want to invest, you 154 00:11:28,109 --> 00:11:33,780 Suze: can invest $100 every month, you could invest $300 every 155 00:11:33,789 --> 00:11:37,780 Suze: three months, whatever it may be. And then once you 156 00:11:37,789 --> 00:11:41,250 Suze: get to the amount of money that you had decided 157 00:11:41,260 --> 00:11:45,940 Suze: you wanted to invest in that one particular investment, it's 158 00:11:45,950 --> 00:11:46,580 Suze: over 159 00:11:46,950 --> 00:11:51,309 Suze: and then you just hold it unless of course, something 160 00:11:51,320 --> 00:11:58,890 Suze: catastrophic happened with that company. It's just that simple. Now, 161 00:11:59,049 --> 00:12:04,409 Suze: what's interesting is a lot of, you have this thing of, 162 00:12:04,419 --> 00:12:06,718 Suze: you want to buy a stock and you want it 163 00:12:06,729 --> 00:12:07,369 Suze: to go up 164 00:12:07,739 --> 00:12:09,919 Suze: and you want to go up right away because it 165 00:12:09,929 --> 00:12:13,109 Suze: feels so good when you buy a stock at 50 166 00:12:13,250 --> 00:12:15,010 Suze: all of a sudden it's at 60 now it's at 167 00:12:15,020 --> 00:12:18,869 Suze: 70 now it's at 80 you feel so great about that. 168 00:12:19,940 --> 00:12:24,770 Suze: Why, why do you want to buy something as it's 169 00:12:24,780 --> 00:12:27,239 Suze: getting more and more expensive? 170 00:12:28,219 --> 00:12:34,169 Suze: I happen to love Apple stock. I love it big time. Possibly. 171 00:12:34,549 --> 00:12:38,250 Suze: Maybe it's my most favorite stock right now, but it's 172 00:12:38,260 --> 00:12:42,359 Suze: at almost $200 a share. 173 00:12:43,030 --> 00:12:45,830 Suze: And I just think that's a little bit high at 174 00:12:45,840 --> 00:12:49,848 Suze: this moment in time. It's gone up too fast. 175 00:12:50,559 --> 00:12:54,539 Suze: So I will wait. I already own some of it, 176 00:12:54,940 --> 00:12:58,650 Suze: but now I'm waiting and I'll see if it comes 177 00:12:58,659 --> 00:13:00,739 Suze: down 10% I'll buy more. 178 00:13:01,409 --> 00:13:05,030 Suze: But if it keeps going up fine, I'm happy with 179 00:13:05,039 --> 00:13:06,900 Suze: what I have. 180 00:13:07,669 --> 00:13:11,909 Suze: So you can time things for yourself as to does 181 00:13:11,919 --> 00:13:15,010 Suze: it make sense to buy a stock that's going up 182 00:13:15,020 --> 00:13:20,348 Suze: very rapidly? Are you just better off waiting and seeing 183 00:13:20,359 --> 00:13:24,409 Suze: what happens and if it's gone up too rapidly and 184 00:13:24,419 --> 00:13:27,690 Suze: you've missed it? Ok. There's a lot of other great 185 00:13:27,700 --> 00:13:32,530 Suze: stocks out there. But you have to be patient with 186 00:13:32,539 --> 00:13:34,770 Suze: what you are doing. 187 00:13:35,549 --> 00:13:39,478 Suze: On the other hand, if you're buying a stock and 188 00:13:39,489 --> 00:13:42,289 Suze: now it's going down and down and down 189 00:13:42,950 --> 00:13:45,840 Suze: and by the way, everything that I am saying in 190 00:13:45,849 --> 00:13:47,210 Suze: this podcast 191 00:13:47,929 --> 00:13:55,340 Suze: applies to individual stocks, exchange traded funds, mutual funds, investments 192 00:13:55,349 --> 00:14:00,349 Suze: like that, you have to make a decision. Why did 193 00:14:00,359 --> 00:14:03,799 Suze: you buy the stock? Did you buy the stock simply 194 00:14:03,809 --> 00:14:07,098 Suze: for the dividend? Did you buy the stock for dividend 195 00:14:07,109 --> 00:14:12,179 Suze: plus growth? Do you like the stock? It's not enough 196 00:14:12,190 --> 00:14:16,218 Suze: if I tell you that I like a particular stock 197 00:14:16,679 --> 00:14:21,340 Suze: because I have a very long view of a stock 198 00:14:21,349 --> 00:14:24,260 Suze: when I buy it. I do not buy it and 199 00:14:24,270 --> 00:14:25,780 Suze: hold it for just one year. 200 00:14:26,479 --> 00:14:28,760 Suze: I don't buy it and hold it for possibly just 201 00:14:28,770 --> 00:14:30,739 Suze: two or three years. 202 00:14:31,359 --> 00:14:34,580 Suze: Sometimes I will buy a stock and I will hold 203 00:14:34,590 --> 00:14:38,619 Suze: it for 10 or 15 years. And I am thrilled 204 00:14:38,630 --> 00:14:44,500 Suze: if I do like Apple, like Amazon. A lot of 205 00:14:44,510 --> 00:14:48,330 Suze: those stocks came out when I was a stockbroker. 206 00:14:48,989 --> 00:14:53,250 Suze: Can you imagine what they're worth today? Sometimes we get 207 00:14:53,260 --> 00:14:58,809 Suze: into this mindset where we buy a stock, it's up 50%. 208 00:14:59,479 --> 00:15:02,489 Suze: You've made so much money on it and now your 209 00:15:02,500 --> 00:15:05,090 Suze: fear takes over and you're like, oh, it's gonna go 210 00:15:05,099 --> 00:15:07,539 Suze: back down and I'm gonna lose all my money. 211 00:15:08,450 --> 00:15:11,150 Suze: So you sell it and then what do you do? 212 00:15:11,679 --> 00:15:15,130 Suze: But then all of a sudden the stock returns and 213 00:15:15,140 --> 00:15:18,669 Suze: it goes way back up again. Like look at Netflix, 214 00:15:19,359 --> 00:15:23,109 Suze: you can see that Netflix went from 500 where I 215 00:15:23,119 --> 00:15:25,390 Suze: personally bought it. It went all the way up to 216 00:15:25,400 --> 00:15:26,349 Suze: 700 217 00:15:27,109 --> 00:15:29,849 Suze: and then it came all the way back down into 218 00:15:29,859 --> 00:15:34,280 Suze: the hundreds and now it's back again, almost at 500. 219 00:15:34,289 --> 00:15:37,169 Suze: And I have no doubt that maybe it can go higher, 220 00:15:37,390 --> 00:15:40,809 Suze: but sometimes you just have to go on a ride 221 00:15:40,820 --> 00:15:44,330 Suze: with the stock and again, if you like it and 222 00:15:44,340 --> 00:15:49,289 Suze: it's going way down, that's when you also buy more, 223 00:15:49,299 --> 00:15:52,650 Suze: if you have the money to do. So, I wanna 224 00:15:52,659 --> 00:15:53,330 Suze: talk 225 00:15:53,880 --> 00:15:58,400 Suze: for a second about a stock that I do like that. 226 00:15:58,409 --> 00:16:01,140 Suze: I'm sure is freaking many of you out because you're 227 00:16:01,150 --> 00:16:04,400 Suze: all talking about it on the women and Money Community 228 00:16:04,409 --> 00:16:07,780 Suze: app and that stock is Pfizer. 229 00:16:08,510 --> 00:16:13,489 Suze: Now, Pfizer has been absolutely obliterated 230 00:16:14,229 --> 00:16:19,690 Suze: when I say obliterated. I mean, obliterated. It was at $54. 231 00:16:20,000 --> 00:16:25,530 Suze: It's high of this year. It's at about 25 $26 now. 232 00:16:26,159 --> 00:16:32,169 Suze: And for now it's paying a 6.28% dividend. 233 00:16:32,940 --> 00:16:40,659 Suze: I truthfully believe that eventually this stock will absolutely return 234 00:16:40,809 --> 00:16:43,619 Suze: and go back up. But you have to have a 235 00:16:43,630 --> 00:16:47,640 Suze: stomach of steel. Now, all of you started to make 236 00:16:47,650 --> 00:16:50,669 Suze: me a little bit nervous. I have to tell you, 237 00:16:50,679 --> 00:16:52,599 Suze: I have to stop reading your posts 238 00:16:52,979 --> 00:16:55,640 Suze: and on the Women and Money app because now it 239 00:16:55,650 --> 00:17:00,080 Suze: has this report, it has that report. And as you know, 240 00:17:00,090 --> 00:17:04,030 Suze: a while ago, I told all of you that one 241 00:17:04,040 --> 00:17:08,760 Suze: of my very, very, very favorite investors is a man 242 00:17:08,770 --> 00:17:12,859 Suze: by the name of Keith Fitzgerald. And he has a 243 00:17:12,869 --> 00:17:18,569 Suze: free newsletter that comes out every d ay called Five numeral 244 00:17:18,579 --> 00:17:22,150 Suze: five with Fitz F_I_T_Z. 245 00:17:22,708 --> 00:17:25,088 Suze: Now he again, in my opinion, is one of the 246 00:17:25,098 --> 00:17:27,167 Suze: most brilliant minds out there 247 00:17:28,290 --> 00:17:31,689 Suze: the other day, I was reading as I do every 248 00:17:31,699 --> 00:17:34,790 Suze: single morning, his five with fits 249 00:17:35,540 --> 00:17:39,159 Suze: and again, you should all subscribe to it. It's free 250 00:17:39,699 --> 00:17:45,439 Suze: and he does a whole thing on why Pfizer may 251 00:17:45,449 --> 00:17:49,520 Suze: be the best buy ever. So, what I did was 252 00:17:49,530 --> 00:17:54,718 Suze: I copied all of his comments and on November 13th, 253 00:17:54,969 --> 00:17:58,719 Suze: I put it on the Women and Money Community App 254 00:17:58,729 --> 00:17:59,310 Suze: wall 255 00:17:59,739 --> 00:18:03,280 Suze: for all of you to read. So you might want 256 00:18:03,290 --> 00:18:06,520 Suze: to read it and see what he thinks. But here's 257 00:18:06,530 --> 00:18:10,160 Suze: the bottom line. It doesn't matter what I think, doesn't 258 00:18:10,170 --> 00:18:15,640 Suze: even matter what he thinks, what matters is how you think. Now, 259 00:18:15,650 --> 00:18:18,949 Suze: I'm thrilled that I see this stock crashing 260 00:18:19,339 --> 00:18:22,000 Suze: if it is keeping you up at night, if you 261 00:18:22,010 --> 00:18:25,040 Suze: don't have the stomach for it, if you just want 262 00:18:25,050 --> 00:18:28,770 Suze: really a stock that's kind of stable and doesn't do much, 263 00:18:28,780 --> 00:18:33,719 Suze: it just goes wherever this is not the stock for you. OK? 264 00:18:34,140 --> 00:18:38,619 Suze: So you have to make that decision yourself. Remember, you 265 00:18:38,630 --> 00:18:43,680 Suze: have to trust yourself more than you trust others. 266 00:18:44,589 --> 00:18:48,709 Suze: The other thing that I think is really important is 267 00:18:48,719 --> 00:18:53,969 Suze: that maybe since I still like the 20, 30 year bond 268 00:18:53,979 --> 00:18:56,089 Suze: as well as the 10 year Treasury Note, 269 00:18:56,530 --> 00:19:01,459 Suze: maybe there is another way for you to participate in 270 00:19:01,469 --> 00:19:07,010 Suze: the movement of interest rates rather than buying individual bonds. 271 00:19:07,369 --> 00:19:11,239 Suze: But before I go on with this idea, I want 272 00:19:11,250 --> 00:19:15,699 Suze: to be very, very clear. My preference is still and 273 00:19:15,709 --> 00:19:21,560 Suze: always will be in individual bonds just that simple. 274 00:19:21,790 --> 00:19:24,979 Suze: But for many of you, you write me, Suze, I 275 00:19:24,989 --> 00:19:27,910 Suze: can't figure out how to buy a treasury. I can't 276 00:19:27,920 --> 00:19:30,239 Suze: figure out how to sell it if I even get it. 277 00:19:30,250 --> 00:19:33,849 Suze: What else can I do? So, what I am telling 278 00:19:33,859 --> 00:19:38,010 Suze: you about right now is only for those of you 279 00:19:38,329 --> 00:19:43,010 Suze: who want to participate in the downward movement of interest rates, 280 00:19:43,709 --> 00:19:48,159 Suze: but you really just can't figure out how to buy 281 00:19:48,170 --> 00:19:53,920 Suze: or sell treasuries. Got that everybody. I hope that is clear. 282 00:19:54,530 --> 00:19:58,530 Suze: And Keith, if you happen to be listening to this podcast, 283 00:19:58,670 --> 00:20:01,750 Suze: I hope it's ok because this is Keith's idea. 284 00:20:02,400 --> 00:20:05,969 Suze: So there's no way Keith or myself can know your 285 00:20:05,979 --> 00:20:11,369 Suze: individual situation and if this is appropriate for you or not. 286 00:20:11,780 --> 00:20:16,399 Suze: But if you want to invest in longer term bonds 287 00:20:16,410 --> 00:20:22,719 Suze: via an exchange traded fund, the Pimco 25 plus year 288 00:20:22,750 --> 00:20:27,750 Suze: zero coupon us Treasury Index Exchange traded fund, 289 00:20:28,380 --> 00:20:36,719 Suze: symbol ZROZ is something that you might want to look at. Currently. 290 00:20:36,900 --> 00:20:43,969 Suze: It's at $86.79 a share pay 3.74% 291 00:20:46,474 --> 00:20:52,974 Suze: in dividends. But remember everybody, this is a zero coupon 292 00:20:52,984 --> 00:20:57,574 Suze: exchange traded fund. And what that means to you is 293 00:20:57,584 --> 00:21:00,854 Suze: you don't get the income. It doesn't have a coupon, 294 00:21:01,185 --> 00:21:04,573 Suze: the interest that it pays you goes right back into 295 00:21:04,584 --> 00:21:10,094 Suze: the fund to be invested at that same rate. So 296 00:21:10,224 --> 00:21:13,813 Suze: just to summarize these things for you, here, 297 00:21:14,770 --> 00:21:19,599 Suze: there are certain stocks that are absolutely getting hit, the 298 00:21:19,609 --> 00:21:24,729 Suze: stocks in the oil industry are being obliterated. You see 299 00:21:24,739 --> 00:21:31,550 Suze: Pioneer Resources down from 257. It's high just about a 300 00:21:31,560 --> 00:21:36,989 Suze: month or two ago to $222 a share. As of 301 00:21:37,000 --> 00:21:42,150 Suze: last Friday, you see Exxon down at about 100 302 00:21:42,560 --> 00:21:46,609 Suze: you see Devon down. So you see these stocks that 303 00:21:46,619 --> 00:21:50,500 Suze: are down, you have to decide on your own. Do 304 00:21:50,510 --> 00:21:53,020 Suze: you want out of them? Do you want to take 305 00:21:53,030 --> 00:21:56,180 Suze: a tax loss this year? If they're outside of a 306 00:21:56,189 --> 00:22:00,420 Suze: retirement account? Do you want to go into that area again? 307 00:22:00,510 --> 00:22:04,739 Suze: But in possibly better stocks that you feel more secure in, 308 00:22:05,369 --> 00:22:10,099 Suze: you have to make those decisions. I will restate. I 309 00:22:10,109 --> 00:22:14,458 Suze: do think oil will return up one day and go up. 310 00:22:14,530 --> 00:22:18,189 Suze: I think XLE if you have it, you should keep it, 311 00:22:18,280 --> 00:22:22,000 Suze: but you have to feel comfortable with it. Not me. 312 00:22:22,199 --> 00:22:26,750 Suze: Do you understand that? So it's just something for you 313 00:22:26,760 --> 00:22:30,869 Suze: to think about again? Just to be clear here, 314 00:22:31,880 --> 00:22:36,579 Suze: the markets will have next year, in my opinion, up, down, 315 00:22:36,589 --> 00:22:40,099 Suze: up down, they can go all over the place. The 316 00:22:40,109 --> 00:22:44,260 Suze: magnificent seven that I spoke about last week, 317 00:22:45,160 --> 00:22:49,179 Suze: the QQQs which give you an incredible exposure to the 318 00:22:49,189 --> 00:22:54,300 Suze: magnificent seven via an ETF. Even though I do expect those 319 00:22:54,310 --> 00:22:57,739 Suze: stocks to continue to go up, I don't expect them 320 00:22:57,750 --> 00:23:00,939 Suze: to go up with the same velocity that they went 321 00:23:00,949 --> 00:23:02,540 Suze: up last year. 322 00:23:03,300 --> 00:23:06,839 Suze: I do think that you will start to see the 323 00:23:06,849 --> 00:23:11,780 Suze: spread of what people are investing in being far more 324 00:23:11,790 --> 00:23:16,920 Suze: than just technology stocks. I think most likely that you 325 00:23:16,930 --> 00:23:22,199 Suze: will also see small cap stocks start to go up. 326 00:23:22,290 --> 00:23:26,060 Suze: So maybe you want to invest in the I Share Russell 327 00:23:26,069 --> 00:23:30,599 Suze: 2000 ETF, symbol IWM. 328 00:23:30,910 --> 00:23:35,930 Suze: And that pays a little dividend of 1.56%. But I 329 00:23:35,939 --> 00:23:38,479 Suze: think different than last year 330 00:23:39,140 --> 00:23:42,839 Suze: where those seven stocks are what drove the Standard and 331 00:23:42,849 --> 00:23:46,760 Suze: Poor's 500 index. I think you're going to see now, 332 00:23:46,770 --> 00:23:53,399 Suze: more participation in the other 493 stocks that were absolutely 333 00:23:53,410 --> 00:23:58,770 Suze: left behind. Now, a lot of you over the past 334 00:23:58,780 --> 00:24:04,329 Suze: few years have invested in the Vanguard total stock market index, 335 00:24:04,339 --> 00:24:07,760 Suze: ETF symbol VTI 336 00:24:09,199 --> 00:24:12,979 Suze: and that particular index, which is why I liked, it 337 00:24:13,359 --> 00:24:18,109 Suze: doesn't invest in just 500 stocks like the Standard and 338 00:24:18,119 --> 00:24:26,300 Suze: Poor's 500 index ETF the SPY, it invests in thousands 339 00:24:26,310 --> 00:24:33,839 Suze: of stocks that cover absolutely every possible group, everything, thousands 340 00:24:34,390 --> 00:24:37,900 Suze: that is why if you look at the return of it, 341 00:24:38,310 --> 00:24:44,969 Suze: the Vanguard total stock market index returned 22.12% so far 342 00:24:44,979 --> 00:24:45,729 Suze: this year. 343 00:24:46,640 --> 00:24:49,819 Suze: But the Standard in Poor's 500 index 344 00:24:50,630 --> 00:24:54,650 Suze: returned 22.45%. 345 00:24:55,310 --> 00:24:58,339 Suze: So it just is a little bit off, but it 346 00:24:58,349 --> 00:25:01,989 Suze: does give you that exposure even though just in a 347 00:25:02,000 --> 00:25:08,109 Suze: tiny bit of a way to thousands of small cap midcap, 348 00:25:08,119 --> 00:25:12,089 Suze: all kinds of stocks. So if you don't wanna do 349 00:25:12,109 --> 00:25:15,399 Suze: where you buy a small cap stock, you buy the QQQs, 350 00:25:15,410 --> 00:25:18,849 Suze: you do everything. All right, forget about it. Then you 351 00:25:18,859 --> 00:25:22,879 Suze: would want to focus on the Vanguard total stock market 352 00:25:22,890 --> 00:25:23,859 Suze: Index fund 353 00:25:24,449 --> 00:25:29,829 Suze: VTI, which the majority of you actually have. So that's 354 00:25:29,839 --> 00:25:33,459 Suze: just something for you to think about as well. 355 00:25:34,579 --> 00:25:38,719 Suze: There are other things that you should know about, which 356 00:25:38,729 --> 00:25:44,619 Suze: is the Standard and Poor's 500 index. The SPY is 357 00:25:44,630 --> 00:25:51,639 Suze: a market weighted index which means it gives more emphasis 358 00:25:51,650 --> 00:25:56,198 Suze: and more movement based on the market value 359 00:25:56,859 --> 00:26:01,399 Suze: of the stocks. So the market value of Amazon and 360 00:26:01,410 --> 00:26:04,420 Suze: all those stocks is far greater than the other. So 361 00:26:04,430 --> 00:26:10,430 Suze: it gives it more value that moves the index, the RSP, 362 00:26:10,920 --> 00:26:15,780 Suze: which is the Invesco Standard and Poor's 500 equal weight. 363 00:26:15,790 --> 00:26:17,000 Suze: ETF 364 00:26:17,989 --> 00:26:24,959 Suze: is an index fund that gives all 500 equal weight 365 00:26:25,430 --> 00:26:30,530 Suze: for next year. You might just also want to pick 366 00:26:30,540 --> 00:26:36,079 Suze: that up and do little by little into the RSP. 367 00:26:36,089 --> 00:26:39,369 Suze: That doesn't mean that you give up SPY or VU 368 00:26:39,579 --> 00:26:45,369 Suze: or VTI, ETs or QQQ, but just for a little 369 00:26:45,380 --> 00:26:47,609 Suze: bit more diversification, 370 00:26:48,170 --> 00:26:52,530 Suze: you may like the RSP. But I just wanna let 371 00:26:52,540 --> 00:26:55,270 Suze: you know that last year, 372 00:26:55,939 --> 00:27:01,060 Suze: the Standard Poor's 500 index and VTI returned about 22% 373 00:27:01,069 --> 00:27:08,640 Suze: for the year. The RSP returned only about 10.5%. That 374 00:27:08,650 --> 00:27:11,800 Suze: doesn't mean it won't return more next year. But just 375 00:27:11,810 --> 00:27:15,889 Suze: be aware of that, that would give you a pretty 376 00:27:15,900 --> 00:27:18,639 Suze: round out portfolio, 377 00:27:19,030 --> 00:27:25,819 Suze: especially if you add it to that, the ZROZ ETF 378 00:27:25,829 --> 00:27:32,089 Suze: to participate where in the downward movement of interest rates. 379 00:27:32,709 --> 00:27:35,989 Suze: So some of you are able to do that and 380 00:27:36,000 --> 00:27:37,770 Suze: some of you won't be able to do it because 381 00:27:37,780 --> 00:27:41,369 Suze: most of your money is in a 401k or whatever. 382 00:27:41,380 --> 00:27:46,659 Suze: But within your 401k, you do have small cap index funds, 383 00:27:46,670 --> 00:27:51,239 Suze: I'm sure. And certain things that I talked about today, 384 00:27:51,489 --> 00:27:55,569 Suze: but regardless of what you're going to invest in and 385 00:27:55,579 --> 00:27:57,800 Suze: how you're going to invest, 386 00:27:58,140 --> 00:28:01,869 Suze: it needs to be done on a dollar cost averaging basis. 387 00:28:01,890 --> 00:28:06,160 Suze: Number one, number two, you are not to invest in 388 00:28:06,170 --> 00:28:10,560 Suze: the stock market if you need your money in less 389 00:28:10,569 --> 00:28:13,910 Suze: than five years and three. 390 00:28:14,670 --> 00:28:19,689 Suze: And I am gonna emphasize this when you have right now, 391 00:28:20,010 --> 00:28:27,839 Suze: a two year treasury note that is at about 4.44 0.3%. 392 00:28:27,849 --> 00:28:30,169 Suze: It touched in there everybody the other day 393 00:28:30,910 --> 00:28:38,640 Suze: and you can get a 5.3 or 5.35% yield on 394 00:28:38,650 --> 00:28:42,400 Suze: an 18 to 23 month. You choose which maturities you 395 00:28:42,410 --> 00:28:47,079 Suze: want when you can get that type of yield 396 00:28:47,959 --> 00:28:52,680 Suze: for essentially a two year period of time. If you 397 00:28:52,689 --> 00:28:58,739 Suze: choose the 23 month one, that is almost 1% higher 398 00:28:59,229 --> 00:29:02,020 Suze: than a two year treasury note. 399 00:29:02,989 --> 00:29:07,250 Suze: Therefore, I don't care what state you live in that 400 00:29:07,260 --> 00:29:10,109 Suze: if you happen to live in a state that has 401 00:29:10,119 --> 00:29:16,300 Suze: a high state income tax bracket or even a low 402 00:29:16,310 --> 00:29:17,829 Suze: state tax bracket, 403 00:29:18,560 --> 00:29:23,780 Suze: the Alliant Credit Union two year CD at these rates 404 00:29:23,989 --> 00:29:29,579 Suze: will net you more than the two year Treasury note. 405 00:29:29,819 --> 00:29:32,859 Suze: Just something you might want to check with your accountant 406 00:29:32,869 --> 00:29:36,140 Suze: just to make sure. But I think you will find 407 00:29:36,199 --> 00:29:41,170 Suze: that for most of you, you can pass up that deal. 408 00:29:41,550 --> 00:29:44,089 Suze: Now, as you know, I don't make a penny. If 409 00:29:44,099 --> 00:29:47,650 Suze: you buy them, you don't buy them. Not my problem. 410 00:29:47,910 --> 00:29:50,089 Suze: I'm just here to tell you the best things you 411 00:29:50,099 --> 00:29:51,729 Suze: should do with your money. 412 00:29:52,569 --> 00:29:55,630 Suze: So why they would keep it at this rate is 413 00:29:55,640 --> 00:29:57,050 Suze: beyond me. 414 00:29:57,750 --> 00:30:01,250 Suze: All right. Now, I forgot to tell you to take 415 00:30:01,260 --> 00:30:05,319 Suze: out your little Suze notebooks. So you just might have 416 00:30:05,329 --> 00:30:10,170 Suze: to listen to this pod cast again 417 00:30:11,030 --> 00:30:15,069 Suze: so that you can get everything that I just said. 418 00:30:16,140 --> 00:30:19,579 Suze: All right, everybody next Sunday 419 00:30:20,790 --> 00:30:24,430 Suze: that Sunday's night will be Christmas Eve. 420 00:30:25,119 --> 00:30:28,130 Suze: What do we do on a podcast 421 00:30:29,209 --> 00:30:33,060 Suze: on the day of Christmas Eve. I'm really going to 422 00:30:33,069 --> 00:30:36,550 Suze: have to think about that one. Anyway, 423 00:30:37,479 --> 00:30:40,920 Suze: so many things in the world right now. So many 424 00:30:40,930 --> 00:30:43,780 Suze: things that, honest to God, I wish I could change. 425 00:30:44,380 --> 00:30:47,020 Suze: I've often said, I wish I had a magic wand 426 00:30:47,520 --> 00:30:50,640 Suze: and I wish I could waive it that anybody who 427 00:30:50,650 --> 00:30:54,119 Suze: is hurting or anybody that is sick or anybody that's 428 00:30:54,130 --> 00:30:57,579 Suze: losing their home or anybody that's in war or whatever 429 00:30:57,589 --> 00:31:00,079 Suze: it may be. I wish I could change it all 430 00:31:00,900 --> 00:31:07,280 Suze: so that everything in this world would be great for everybody. 431 00:31:08,180 --> 00:31:10,680 Suze: But I kind of do have a magic wand. 432 00:31:11,560 --> 00:31:15,420 Suze: And my magic wand is all of you that listen 433 00:31:15,550 --> 00:31:17,569 Suze: to the Women and Money podcast 434 00:31:18,380 --> 00:31:20,750 Suze: because if all of us together 435 00:31:21,420 --> 00:31:26,609 Suze: just put out the energy to make this world a 436 00:31:26,619 --> 00:31:31,760 Suze: more loving, peaceful and joyful place. If we can just 437 00:31:31,770 --> 00:31:34,000 Suze: touch one person's heart, 438 00:31:35,130 --> 00:31:39,760 Suze: then on some level, my wish for a magic wand 439 00:31:40,189 --> 00:31:41,930 Suze: is coming true. 440 00:31:42,910 --> 00:31:45,670 Suze: And my magic wand says to all of you, 441 00:31:46,810 --> 00:31:50,869 Suze: we bless you all because we know that you are 442 00:31:50,880 --> 00:31:53,670 Suze: all unstoppable.