1 00:00:34,040 --> 00:00:36,790 Suze: May 15, 2022 2 00:00:38,040 --> 00:00:42,260 Suze: Suze School. And on today's Suze School 3 00:00:42,840 --> 00:00:45,790 Suze: I really want to try to tell you what I 4 00:00:45,790 --> 00:00:47,250 Suze: think you should do 5 00:00:47,840 --> 00:00:49,959 Suze: In 2022 6 00:00:50,340 --> 00:00:52,629 Suze: but before I can tell you about what I think 7 00:00:52,630 --> 00:00:53,550 Suze: you should do. 8 00:00:54,440 --> 00:00:56,500 Suze: I think it's important that we all just take a 9 00:00:56,500 --> 00:00:56,910 Suze: moment 10 00:00:56,920 --> 00:00:57,760 Speaker 2: and stop 11 00:00:58,440 --> 00:01:01,940 Speaker 2: and look at what is happening as of 12 00:01:01,950 --> 00:01:02,760 Suze: today 13 00:01:03,240 --> 00:01:04,529 Suze: right here and 14 00:01:04,530 --> 00:01:05,550 Speaker 2: right now. 15 00:01:06,540 --> 00:01:07,010 Speaker 2: So for 16 00:01:07,010 --> 00:01:09,959 Suze: those of you that do invest in the stock market, 17 00:01:10,760 --> 00:01:12,950 Suze: The Standard and Poor's 500, 18 00:01:13,340 --> 00:01:16,580 Suze: Which are the 500 largest stocks. That's an index that 19 00:01:16,580 --> 00:01:17,750 Suze: most of you are in. 20 00:01:18,440 --> 00:01:23,620 Suze: If you have an index fund is down 16.11% so 21 00:01:23,620 --> 00:01:25,060 Suze: far for the year 22 00:01:26,740 --> 00:01:31,260 Suze: NASDAQ which is where all the technology stocks are. 23 00:01:32,240 --> 00:01:38,660 Suze: The NASDAQ is down 27.15% for the year. 24 00:01:39,540 --> 00:01:41,759 Suze: So I know that a lot of you 25 00:01:42,440 --> 00:01:45,500 Suze: have been feeling the pain of the stock market and 26 00:01:45,500 --> 00:01:48,860 Suze: many of your stocks going down and down and down. 27 00:01:49,840 --> 00:01:52,860 Suze: And we currently have an inflation rate 28 00:01:53,340 --> 00:01:57,360 Suze: of 8.3% down just a tiny bit 29 00:01:57,840 --> 00:02:02,010 Suze: From 8.5%, which was the highest it hit a while 30 00:02:02,010 --> 00:02:03,560 Suze: ago in 40 years. 31 00:02:04,140 --> 00:02:06,260 Suze: But that's where we are right now. 32 00:02:07,040 --> 00:02:10,760 Suze: Real estate is still up about 15 - 17%. 33 00:02:11,440 --> 00:02:12,460 Suze: Oil 34 00:02:13,040 --> 00:02:15,860 Suze: Is at $110 a barrel. 35 00:02:16,740 --> 00:02:20,120 Suze: So prices at the gas station are not going to 36 00:02:20,120 --> 00:02:21,560 Suze: be going down. 37 00:02:22,440 --> 00:02:27,080 Suze: But what has also happened in the year 2022 so 38 00:02:27,080 --> 00:02:27,660 Suze: far 39 00:02:28,540 --> 00:02:34,060 Suze: Is it wasn't like the years 2020 and 2021 40 00:02:34,639 --> 00:02:38,260 Suze: where you couldn't go out, you couldn't spend, you were 41 00:02:38,260 --> 00:02:41,400 Suze: getting all kinds of checks, you were getting stimulus checks, 42 00:02:41,400 --> 00:02:46,600 Suze: unemployment checks, extra unemployment checks, child tax credit checks, all 43 00:02:46,610 --> 00:02:50,050 Suze: kind of money was coming your way at the exact 44 00:02:50,050 --> 00:02:53,180 Suze: same time that you didn't have to go to work, 45 00:02:53,190 --> 00:02:55,820 Suze: you didn't have to spend money, you didn't have to 46 00:02:55,820 --> 00:02:58,660 Suze: buy clothes, you didn't have to drive nothing. 47 00:02:59,840 --> 00:03:02,450 Suze: And then 2022 happened 48 00:03:02,840 --> 00:03:06,670 Suze: and everything in essence went back to normal, but even 49 00:03:06,680 --> 00:03:09,860 Suze: more normal. But here's what's sad 50 00:03:10,540 --> 00:03:13,560 Suze: In those two years, 20 and 21, 51 00:03:14,540 --> 00:03:16,250 Suze: you all got used 52 00:03:16,780 --> 00:03:19,990 Suze: to having a lot of extra money or some extra 53 00:03:19,990 --> 00:03:22,050 Suze: money depending on your circumstances 54 00:03:22,740 --> 00:03:24,260 Suze: and your credit card debt 55 00:03:24,639 --> 00:03:25,660 Suze: went down 56 00:03:26,139 --> 00:03:27,060 Suze: in America 57 00:03:27,639 --> 00:03:30,829 Suze: and your savings rate went up so high, I can't 58 00:03:30,840 --> 00:03:31,750 Suze: even tell you. 59 00:03:32,639 --> 00:03:34,950 Suze: But where are we Right now? 60 00:03:36,040 --> 00:03:39,580 Suze: Right now, credit card debt has returned to the highest 61 00:03:39,580 --> 00:03:41,350 Suze: that it's maybe ever been. 62 00:03:42,040 --> 00:03:44,560 Suze: The savings rate were all the way back 63 00:03:44,940 --> 00:03:48,560 Suze: To where it was in 2013. 64 00:03:49,640 --> 00:03:51,860 Suze: The standard of living today 65 00:03:52,240 --> 00:03:57,660 Suze: Is back to where it was about 2017 through 2019. 66 00:03:58,340 --> 00:04:02,860 Suze: We are moving backwards in terms of healthy 67 00:04:03,440 --> 00:04:08,660 Suze: financial behavior. One of the most disruptive behaviors to me 68 00:04:09,140 --> 00:04:11,360 Suze: is that so many of you now 69 00:04:11,840 --> 00:04:13,550 Suze: are spending so much money 70 00:04:13,940 --> 00:04:16,930 Suze: and you don't have the cash anymore to pay for it. 71 00:04:16,940 --> 00:04:20,220 Suze: Your credit cards maybe are maxed out, but you still 72 00:04:20,220 --> 00:04:22,360 Suze: have your real estate that you bought 73 00:04:23,240 --> 00:04:25,050 Suze: and you have a lot of equity in that real 74 00:04:25,050 --> 00:04:25,660 Suze: estate 75 00:04:26,140 --> 00:04:30,659 Suze: and now people are starting to do cash out refinancing, 76 00:04:30,690 --> 00:04:34,260 Suze: you're taking cash out of the equity of your home 77 00:04:35,140 --> 00:04:38,770 Suze: and you're refinancing. But what makes no sense about that 78 00:04:39,050 --> 00:04:41,350 Suze: is you are giving up a mortgage 79 00:04:41,940 --> 00:04:45,450 Suze: that you got maybe a year or so ago at 3.5% 80 00:04:45,839 --> 00:04:49,350 Suze: and you're refinancing now at 5.5% 81 00:04:49,839 --> 00:04:52,860 Suze: that isn't when you refinance, 82 00:04:53,740 --> 00:04:59,180 Suze: so many things like that are starting to really show 83 00:04:59,190 --> 00:05:01,060 Suze: what's happening in the economy. 84 00:05:01,839 --> 00:05:05,700 Suze: So that's a very quick overview of where we are 85 00:05:05,710 --> 00:05:09,510 Suze: right now, financially speaking, I mean we have other kinds 86 00:05:09,510 --> 00:05:12,960 Suze: of things happening, but that's a nice little overview for you. 87 00:05:13,940 --> 00:05:17,520 Suze: So what we need to do then is break down 88 00:05:17,529 --> 00:05:18,860 Suze: different things 89 00:05:19,240 --> 00:05:23,670 Suze: as to what will happen in the future. Now, let's 90 00:05:23,670 --> 00:05:25,150 Suze: start with inflation 91 00:05:25,540 --> 00:05:28,450 Suze: because inflation really does affect 92 00:05:29,140 --> 00:05:33,060 Suze: every single one of you listening to this podcast, 93 00:05:33,730 --> 00:05:37,190 Suze: you know, and I know that you're paying more not 94 00:05:37,190 --> 00:05:38,560 Suze: only at the gas pump, 95 00:05:38,940 --> 00:05:42,750 Suze: but your food bills have absolutely skyrocketed 96 00:05:43,440 --> 00:05:45,750 Suze: if in fact you do want to travel, 97 00:05:46,440 --> 00:05:50,219 Suze: airplane tickets are out of sight right now, hotel rooms 98 00:05:50,230 --> 00:05:55,789 Suze: are increasing every single thing is going up. Oh, you're 99 00:05:55,790 --> 00:05:57,860 Suze: buying a home and you want to fix it up. 100 00:05:58,339 --> 00:05:59,860 Suze: Alright, the aluminum 101 00:06:00,240 --> 00:06:03,620 Suze: has almost doubled from a year ago wood even though 102 00:06:03,620 --> 00:06:08,020 Suze: it's coming down is so expensive, you cannot do anything 103 00:06:08,020 --> 00:06:09,060 Suze: today 104 00:06:09,839 --> 00:06:12,750 Suze: and not expect to pay maybe 105 00:06:13,140 --> 00:06:17,530 Suze: 50% more or 100% more for something that you would 106 00:06:17,540 --> 00:06:20,360 Suze: have purchased one year ago. 107 00:06:21,640 --> 00:06:25,020 Suze: So it affects all of you. So the question has 108 00:06:25,020 --> 00:06:29,529 Suze: to be asked and answered, how long is inflation going 109 00:06:29,540 --> 00:06:30,360 Suze: to be here? 110 00:06:31,640 --> 00:06:33,349 Suze: And I have to tell you, 111 00:06:33,740 --> 00:06:36,650 Suze: I think it's going to be here until about October 112 00:06:37,040 --> 00:06:40,020 Suze: now. I know a lot of people are saying, oh 113 00:06:40,020 --> 00:06:41,860 Suze: inflation has peaked its peak. 114 00:06:42,640 --> 00:06:44,559 Suze: No, it hasn't 115 00:06:45,339 --> 00:06:50,560 Suze: because it's very difficult to bring down inflation 116 00:06:51,640 --> 00:06:54,060 Suze: the way that it's being done right now with very 117 00:06:54,060 --> 00:06:57,360 Suze: small moves in interest rates 118 00:06:57,740 --> 00:07:01,250 Suze: that the Federal Reserve happens to be initiating. 119 00:07:02,040 --> 00:07:04,380 Suze: So I think it's going to take, this is just 120 00:07:04,380 --> 00:07:07,820 Suze: my opinion. It's going to take a whole lot longer 121 00:07:07,850 --> 00:07:10,350 Suze: than everybody thinks it's going to take 122 00:07:11,140 --> 00:07:13,560 Suze: and it's going to affect you probably, 123 00:07:14,540 --> 00:07:18,270 Suze: we'll see it at about October when maybe it will 124 00:07:18,270 --> 00:07:22,360 Suze: have peaked and then things maybe will start to reverse 125 00:07:23,140 --> 00:07:26,650 Suze: now when inflation continues. The way that it is. 126 00:07:27,140 --> 00:07:31,160 Suze: The only way to get inflation under control 127 00:07:31,740 --> 00:07:35,360 Suze: is by raising interest rates with the Feds. 128 00:07:35,840 --> 00:07:39,080 Suze: And I think you're going to see the Feds continue 129 00:07:39,090 --> 00:07:40,960 Suze: to raise interest rates now 130 00:07:41,440 --> 00:07:44,460 Suze: for at least two more times maybe more. 131 00:07:44,940 --> 00:07:47,330 Suze: If they really wanted to help us, they would just 132 00:07:47,330 --> 00:07:50,170 Suze: raise it a whole bunch of right now, take the 133 00:07:50,170 --> 00:07:52,460 Suze: hit and everything would be great. 134 00:07:52,940 --> 00:07:56,160 Suze: But I just don't think that's what they are going 135 00:07:56,160 --> 00:07:56,750 Suze: to do. 136 00:07:57,740 --> 00:08:00,160 Suze: So with interest rates going up. 137 00:08:01,040 --> 00:08:05,170 Suze: What you need to know is the stock market does 138 00:08:05,170 --> 00:08:11,000 Suze: not like when interest rates go up. Especially growth stocks, 139 00:08:11,120 --> 00:08:17,350 Suze: technology stocks, stocks don't like when interest rates go up. 140 00:08:17,360 --> 00:08:20,060 Suze: I just want you now to think about that 141 00:08:20,640 --> 00:08:22,760 Suze: Now, I know on Friday 142 00:08:23,240 --> 00:08:25,660 Suze: that the market went up very, very nicely 143 00:08:26,340 --> 00:08:29,690 Suze: and I think it is probable for the next week, 144 00:08:29,700 --> 00:08:32,760 Suze: maybe two weeks these markets can continue up. 145 00:08:33,340 --> 00:08:36,600 Suze: But I think after that you're going to see these 146 00:08:36,600 --> 00:08:39,760 Suze: markets go right back down. 147 00:08:40,540 --> 00:08:43,980 Suze: There has never, ever, ever been a time when the 148 00:08:43,980 --> 00:08:47,689 Suze: Feds were tightening that, that was the end of a 149 00:08:47,690 --> 00:08:51,850 Suze: bear market. It has never happened that way. 150 00:08:52,640 --> 00:08:56,840 Suze: So don't just think because Friday, the market went up, 151 00:08:56,850 --> 00:09:00,750 Suze: Oh good. Everything's recovering. I can do this again and 152 00:09:00,750 --> 00:09:02,260 Suze: continue on like normal. 153 00:09:02,640 --> 00:09:03,660 Suze: Like I said, 154 00:09:04,040 --> 00:09:05,560 Suze: my personal opinion 155 00:09:05,940 --> 00:09:08,960 Suze: Is that it may go up this next week or two. 156 00:09:09,540 --> 00:09:13,100 Suze: But after that, I have a feeling that it's going 157 00:09:13,100 --> 00:09:15,750 Suze: to start to go back down again. 158 00:09:16,640 --> 00:09:20,660 Suze: A stock market reaches its bottom when you have something 159 00:09:20,660 --> 00:09:22,059 Suze: called capitulation 160 00:09:22,540 --> 00:09:25,959 Suze: and that is when everybody has just given up, 161 00:09:26,740 --> 00:09:29,650 Suze: they are selling and selling and selling and they are 162 00:09:29,650 --> 00:09:32,050 Suze: not buying like they did Friday, 163 00:09:32,440 --> 00:09:36,400 Suze: they are just selling and that really hasn't happened yet 164 00:09:36,410 --> 00:09:37,960 Suze: in the stock market 165 00:09:38,540 --> 00:09:41,930 Suze: a little bit ago, I said, please don't do anything 166 00:09:41,940 --> 00:09:44,360 Suze: until this podcast today. 167 00:09:45,040 --> 00:09:47,930 Suze: And that is because I want to talk about the 168 00:09:47,929 --> 00:09:50,260 Suze: different types of investors that are out there. 169 00:09:50,940 --> 00:09:52,650 Suze: There's one kind of investor 170 00:09:53,040 --> 00:09:57,949 Suze: That's younger. They have 5, 10 15 20 30 or 40 171 00:09:57,950 --> 00:10:00,790 Suze: years until they need the money that they've been putting 172 00:10:00,790 --> 00:10:03,560 Suze: away in their retirement accounts 173 00:10:04,140 --> 00:10:07,450 Suze: and they've been doing it every single month, little by 174 00:10:07,450 --> 00:10:10,459 Suze: little on a dollar cost averaging basis. 175 00:10:10,950 --> 00:10:12,959 Suze: If that is you 176 00:10:13,340 --> 00:10:15,870 Suze: and you need to just continue through this market, no 177 00:10:15,870 --> 00:10:17,449 Suze: matter what it does, 178 00:10:17,940 --> 00:10:22,640 Suze: You need to continue to invest month in and month out. 179 00:10:22,650 --> 00:10:26,630 Suze: You need to make sure that you are absolutely diversified. 180 00:10:26,640 --> 00:10:30,130 Suze: You do not want to be 100% in tech, you 181 00:10:30,130 --> 00:10:34,610 Suze: want to be in index funds in NOBL, you want 182 00:10:34,610 --> 00:10:37,860 Suze: to be in really good performing stocks oil 183 00:10:38,540 --> 00:10:43,960 Suze: but you want to be diversified dollar cost averaging in. 184 00:10:44,440 --> 00:10:48,160 Suze: I would not be selling here on any level 185 00:10:48,540 --> 00:10:51,660 Suze: if you are in good quality investments 186 00:10:52,240 --> 00:10:56,020 Suze: And you have at least 5, 10, 15 years or 187 00:10:56,020 --> 00:10:59,860 Suze: longer until you need this money. 188 00:11:00,840 --> 00:11:03,260 Suze: Then there's another type of investor 189 00:11:03,740 --> 00:11:07,090 Suze: which is also young. They have many years till they 190 00:11:07,090 --> 00:11:11,560 Suze: need this money but they got a lump sum of money. 191 00:11:12,240 --> 00:11:15,880 Suze: Maybe they sold their home and they have $800,000 or 192 00:11:15,880 --> 00:11:19,809 Suze: they were left in inheritance of $1 million dollars or 193 00:11:19,820 --> 00:11:22,429 Suze: they have a whole lot of money from something, they 194 00:11:22,429 --> 00:11:26,630 Suze: sold the business but they have a really large lump 195 00:11:26,630 --> 00:11:27,860 Suze: sum of money. 196 00:11:28,840 --> 00:11:32,290 Suze: And now those people are writing me and they are 197 00:11:32,300 --> 00:11:35,230 Suze: asking me should I put it all in the stock 198 00:11:35,230 --> 00:11:37,059 Suze: market right now? 199 00:11:37,640 --> 00:11:41,500 Suze: If I were you at this point in time and 200 00:11:41,500 --> 00:11:44,179 Suze: it's very difficult for me to tell all of you 201 00:11:44,179 --> 00:11:46,820 Suze: what you should be doing because you're all in such 202 00:11:46,820 --> 00:11:49,460 Suze: really different situations. 203 00:11:50,340 --> 00:11:55,260 Suze: But I would not be committing a large sum of 204 00:11:55,260 --> 00:11:59,530 Suze: money right here and right now to the stock market. 205 00:11:59,540 --> 00:12:01,560 Suze: I just wouldn't do it. 206 00:12:02,640 --> 00:12:05,330 Suze: Hey, if you want to start on really down days 207 00:12:05,340 --> 00:12:09,109 Suze: putting small amounts of money in and dollar cost averaging 208 00:12:09,120 --> 00:12:12,560 Suze: and just keep doing that over the next year or two. Okay, 209 00:12:13,040 --> 00:12:17,510 Suze: But for lump sum investing, I would not be doing 210 00:12:17,510 --> 00:12:18,860 Suze: that right now. 211 00:12:20,140 --> 00:12:21,850 Suze: So I ask you to be careful. 212 00:12:22,540 --> 00:12:25,540 Suze: I ask you to understand that there are other alternatives 213 00:12:25,540 --> 00:12:27,250 Suze: out there right now. 214 00:12:28,240 --> 00:12:31,300 Suze: As you know, I'm absolutely in love with Series I 215 00:12:31,300 --> 00:12:31,959 Suze: bonds 216 00:12:32,340 --> 00:12:34,260 Suze: and so you should check those out. 217 00:12:34,940 --> 00:12:37,960 Suze: I also really love Treasuries. 218 00:12:38,440 --> 00:12:40,970 Suze: Let me tell you what I have been doing with 219 00:12:40,970 --> 00:12:42,540 Suze: large sums of cash. 220 00:12:43,440 --> 00:12:46,030 Suze: I have not been putting it into the stock market 221 00:12:46,030 --> 00:12:47,250 Suze: at this point in time. 222 00:12:47,940 --> 00:12:52,540 Suze: I have been buying six months, one year and two 223 00:12:52,550 --> 00:12:54,260 Suze: year Treasury notes 224 00:12:54,840 --> 00:12:58,280 Suze: because rather than just it's sitting maybe at a brokerage 225 00:12:58,280 --> 00:13:01,640 Suze: firm not making any interest at all or you know, 226 00:13:01,640 --> 00:13:04,260 Suze: smaller interest rates like that. When you have a large 227 00:13:04,260 --> 00:13:05,160 Suze: sums of money, 228 00:13:06,040 --> 00:13:10,670 Suze: then there's absolutely nothing wrong, especially if you don't need 229 00:13:10,679 --> 00:13:14,330 Suze: that money for six months or a year or two 230 00:13:14,420 --> 00:13:18,359 Suze: to simply buy Treasury notes, bills 231 00:13:19,240 --> 00:13:23,859 Suze: Or whatever you want to lock in, sometimes close to 3%. 232 00:13:23,860 --> 00:13:25,660 Suze: Now when I did it, I was able to get 233 00:13:25,670 --> 00:13:27,250 Suze: about 3%. 234 00:13:28,140 --> 00:13:30,630 Suze: So they go up, they go down, but you can 235 00:13:30,630 --> 00:13:33,330 Suze: time when you want to buy them, but I don't 236 00:13:33,330 --> 00:13:35,160 Suze: know three % 237 00:13:35,640 --> 00:13:38,810 Suze: just for money that's safe until I can figure out 238 00:13:38,809 --> 00:13:41,060 Suze: what I want to do or invest in. 239 00:13:41,540 --> 00:13:43,060 Suze: Then it's like, okay, 240 00:13:43,440 --> 00:13:48,140 Suze: remember when you own a Treasury Bill Bond or Note, you 241 00:13:48,140 --> 00:13:51,359 Suze: can also always sell them in the secondary markets. 242 00:13:51,840 --> 00:13:54,670 Suze: So if you want and you buy one and it's 243 00:13:54,670 --> 00:13:55,950 Suze: really short term, 244 00:13:56,740 --> 00:13:59,840 Suze: you can get out of it, liquidity is there for 245 00:13:59,840 --> 00:14:02,250 Suze: you and then you can do whatever you want with 246 00:14:02,250 --> 00:14:05,340 Suze: the money. But you still did relatively okay while you're 247 00:14:05,340 --> 00:14:06,459 Suze: sitting there. 248 00:14:07,040 --> 00:14:08,660 Suze: Just something to think about. 249 00:14:09,140 --> 00:14:13,240 Suze: Again, for those of you who need money that is liquid, 250 00:14:13,250 --> 00:14:17,780 Suze: you cannot tie it up, emergency fund, whatever it may be. 251 00:14:17,790 --> 00:14:21,479 Suze: You should absolutely take advantage of the offer at Alliant 252 00:14:21,480 --> 00:14:22,360 Suze: Credit Union 253 00:14:22,840 --> 00:14:27,750 Suze: again, check out my alliant dot com because it's still, 254 00:14:27,750 --> 00:14:31,260 Suze: in my opinion, one of the best deals out there, 255 00:14:32,040 --> 00:14:35,510 Suze: but you just have to be careful about investing right 256 00:14:35,510 --> 00:14:38,360 Suze: now a large lump sum of money, 257 00:14:39,140 --> 00:14:41,260 Suze: the next type of investor 258 00:14:41,640 --> 00:14:42,360 Suze: out there 259 00:14:43,340 --> 00:14:47,360 Suze: is somebody who is in retirement or very close to 260 00:14:47,360 --> 00:14:48,260 Suze: retirement 261 00:14:49,540 --> 00:14:52,750 Suze: and for those of you that are in this situation, 262 00:14:53,140 --> 00:14:56,560 Suze: it is a very difficult time for you right now 263 00:14:57,240 --> 00:15:00,560 Suze: and it is difficult because as interest rates go up, 264 00:15:00,940 --> 00:15:02,860 Suze: your bond funds have been going down 265 00:15:03,640 --> 00:15:07,040 Suze: as interest rates go up, stocks don't like it. Your 266 00:15:07,040 --> 00:15:11,260 Suze: stock portfolio is going down at the exact same time 267 00:15:11,740 --> 00:15:14,880 Suze: that you need to be withdrawing money maybe from your 268 00:15:14,880 --> 00:15:19,230 Suze: retirement account or you're about to withdraw money from your 269 00:15:19,230 --> 00:15:20,460 Suze: retirement account. 270 00:15:21,440 --> 00:15:26,490 Suze: I've always said to you that you need a 3-5 271 00:15:26,500 --> 00:15:28,360 Suze: year cash cushion 272 00:15:28,740 --> 00:15:32,690 Suze: Where you know, if you need money over the next 273 00:15:32,700 --> 00:15:34,650 Suze: 3-5 years 274 00:15:35,240 --> 00:15:40,900 Suze: to meet your financial obligations above and beyond your Social 275 00:15:40,900 --> 00:15:45,000 Suze: Security check or your pension or whatever, you're guaranteed income 276 00:15:45,000 --> 00:15:46,160 Suze: happens to be 277 00:15:46,840 --> 00:15:50,640 Suze: that, that money needs to be in cash 278 00:15:51,040 --> 00:15:55,970 Suze: for times like this because rather than liquidating some of 279 00:15:55,970 --> 00:15:57,060 Suze: these stocks 280 00:15:57,640 --> 00:16:00,460 Suze: that probably you should be holding for the long run, 281 00:16:01,440 --> 00:16:04,820 Suze: what you really want to be doing is taking that 282 00:16:04,820 --> 00:16:06,950 Suze: money from cash. 283 00:16:07,940 --> 00:16:09,650 Suze: So have you done that? 284 00:16:10,440 --> 00:16:12,360 Suze: Because if you haven't done that, 285 00:16:12,740 --> 00:16:16,340 Suze: then it's really difficult now for me to tell you 286 00:16:16,340 --> 00:16:19,550 Suze: what to do because a lot of this has taken 287 00:16:19,560 --> 00:16:23,150 Suze: such a hit already. So you would have to just 288 00:16:23,150 --> 00:16:26,950 Suze: sell everything here now in order to raise cash and 289 00:16:26,950 --> 00:16:29,660 Suze: that was not the point of this. 290 00:16:30,640 --> 00:16:33,930 Suze: So you're going to have to really look at everything 291 00:16:33,930 --> 00:16:37,260 Suze: that you have and make decisions, why is that? 292 00:16:38,040 --> 00:16:38,550 Suze: Because 293 00:16:38,940 --> 00:16:40,470 Suze: it probably 294 00:16:40,840 --> 00:16:44,350 Suze: Could take 3-5 years 295 00:16:45,140 --> 00:16:48,430 Suze: after these markets are done doing what they need to 296 00:16:48,430 --> 00:16:48,970 Suze: do 297 00:16:49,700 --> 00:16:52,660 Suze: for you to get back to where you are. 298 00:16:53,240 --> 00:16:56,070 Suze: This is not going to be a situation where all 299 00:16:56,070 --> 00:16:58,570 Suze: of a sudden it went down and now it's back 300 00:16:58,580 --> 00:17:01,860 Suze: up and everything is fine again. This is a situation 301 00:17:01,860 --> 00:17:04,850 Suze: where it could take a long time 302 00:17:05,340 --> 00:17:07,770 Suze: for everything to work itself out. 303 00:17:08,340 --> 00:17:10,899 Suze: I mean you really have to think about what's going 304 00:17:10,910 --> 00:17:14,460 Suze: on in the world right now and what's going on 305 00:17:14,460 --> 00:17:17,800 Suze: in the world right now is very different than what 306 00:17:17,800 --> 00:17:22,169 Suze: was going on years ago or even during the pandemic. 307 00:17:23,140 --> 00:17:24,959 Suze: We were not at war, 308 00:17:25,440 --> 00:17:28,530 Suze: we are at war everybody. And the reason that I 309 00:17:28,530 --> 00:17:32,240 Suze: say we are at war is we have to finance 310 00:17:32,320 --> 00:17:35,460 Suze: the war with Ukraine, we have to help them 311 00:17:36,340 --> 00:17:39,440 Suze: and at the same time that's happening, you know, we 312 00:17:39,440 --> 00:17:42,670 Suze: have all other things that are going on like I said, 313 00:17:43,040 --> 00:17:46,730 Suze: and so it is really important that it may take 314 00:17:46,740 --> 00:17:47,659 Suze: a while 315 00:17:48,040 --> 00:17:50,460 Suze: to clean up this mess 316 00:17:51,040 --> 00:17:54,550 Suze: because we don't really know what's going to happen. 317 00:17:54,940 --> 00:17:59,100 Suze: So you have to plan for 3 to 5 years 318 00:17:59,119 --> 00:18:03,350 Suze: in good times. It normally takes a market from the 319 00:18:03,350 --> 00:18:07,859 Suze: peak to the trough back to the peak again, 3.5 years, 320 00:18:08,440 --> 00:18:11,310 Suze: which is why I've always said to you, you need 321 00:18:11,320 --> 00:18:15,030 Suze: a three year to five year cash cushion. 322 00:18:15,540 --> 00:18:18,690 Suze: This may be a situation where it could be five 323 00:18:18,690 --> 00:18:19,350 Suze: years 324 00:18:19,940 --> 00:18:22,570 Suze: now for those of you who have time on your side, 325 00:18:22,580 --> 00:18:26,169 Suze: it's so fabulous because you're going to continue to dollar 326 00:18:26,170 --> 00:18:29,840 Suze: cost average every single month into these stocks that are 327 00:18:29,840 --> 00:18:32,820 Suze: down and even if they start going back up again, 328 00:18:32,830 --> 00:18:34,910 Suze: they'll be at a lesser price than they would have 329 00:18:34,910 --> 00:18:35,450 Suze: been 330 00:18:36,040 --> 00:18:37,450 Suze: at the end of last year. 331 00:18:39,240 --> 00:18:42,060 Suze: But for those of you in retirement, 332 00:18:42,640 --> 00:18:44,770 Suze: it's another story. 333 00:18:45,440 --> 00:18:48,050 Suze: So we need to think about that. 334 00:18:48,940 --> 00:18:51,270 Suze: Now. The next thing is 335 00:18:51,740 --> 00:18:53,830 Suze: what happens and I'm going to talk a little bit 336 00:18:53,830 --> 00:18:56,830 Suze: later a little bit more in detail about bonds and 337 00:18:56,830 --> 00:18:59,340 Suze: everything like that. But I just want to give you 338 00:18:59,340 --> 00:19:00,670 Suze: the big picture here 339 00:19:01,840 --> 00:19:04,560 Suze: when interest rates start to go up 340 00:19:04,940 --> 00:19:08,760 Suze: and they have to go up why everybody to combat 341 00:19:08,770 --> 00:19:12,460 Suze: inflation to get inflation to go down 342 00:19:12,940 --> 00:19:15,530 Suze: when interest rates go up. And I've already said this 343 00:19:15,530 --> 00:19:18,850 Suze: to you now, the stock market does not like it 344 00:19:20,240 --> 00:19:24,270 Suze: and it affects the stock market, especially growth stocks. Why 345 00:19:24,280 --> 00:19:28,170 Suze: is that? Because now for these companies to borrow money 346 00:19:28,180 --> 00:19:32,060 Suze: to grow, it costs them more because interest rates are higher. 347 00:19:33,040 --> 00:19:36,400 Suze: You also have people that are selling out of these 348 00:19:36,400 --> 00:19:38,050 Suze: stocks because they're afraid 349 00:19:38,840 --> 00:19:41,730 Suze: and rather than staying in the stock market to earn 350 00:19:41,740 --> 00:19:45,090 Suze: a dividend of maybe two or 3% they're going into 351 00:19:45,090 --> 00:19:47,169 Suze: treasuries where they're safe and sound, 352 00:19:47,540 --> 00:19:50,859 Suze: that hurts the value of the company as well 353 00:19:51,740 --> 00:19:53,660 Suze: when that starts to happen 354 00:19:54,840 --> 00:19:58,040 Suze: then what you also see companies start to do as 355 00:19:58,040 --> 00:20:00,450 Suze: you've seen right now with Amazon 356 00:20:01,040 --> 00:20:05,449 Suze: is that they try to cut back their expenses in 357 00:20:05,460 --> 00:20:07,460 Suze: any way possible 358 00:20:07,840 --> 00:20:12,439 Suze: because they can't continue to pass price increases on to 359 00:20:12,440 --> 00:20:13,270 Suze: all of you. 360 00:20:13,740 --> 00:20:17,310 Suze: So the next thing that they do is they start 361 00:20:17,310 --> 00:20:19,970 Suze: to cut back on their own expenses and what do 362 00:20:19,970 --> 00:20:23,460 Suze: they do to do that? They start laying people off, 363 00:20:24,040 --> 00:20:27,580 Suze: I mentioned Amazon a second ago and that's because Amazon 364 00:20:27,580 --> 00:20:31,449 Suze: has announced they're going to lay off 100,000 people 365 00:20:32,840 --> 00:20:35,950 Suze: when they lay off people, not just amazon but all 366 00:20:35,950 --> 00:20:39,350 Suze: these corporations start to lay off people 367 00:20:40,340 --> 00:20:43,570 Suze: then the unemployment rate starts to go up which is 368 00:20:43,570 --> 00:20:46,460 Suze: exactly what the government wants to see 369 00:20:47,040 --> 00:20:52,180 Suze: because that starts to tame inflation because when unemployment goes 370 00:20:52,190 --> 00:20:52,560 Suze: up 371 00:20:53,270 --> 00:20:57,550 Suze: you spend less money because you have less money and 372 00:20:57,550 --> 00:21:00,760 Suze: when you spend less money the economy starts to cool 373 00:21:00,760 --> 00:21:04,350 Suze: down and inflation starts to come down as well. 374 00:21:05,540 --> 00:21:07,760 Suze: And then what happens after that 375 00:21:08,740 --> 00:21:13,060 Suze: usually is you will also see a recession come about 376 00:21:14,140 --> 00:21:17,389 Suze: Now I personally think we are going to have a 377 00:21:17,390 --> 00:21:20,859 Suze: recession and I think it could happen anytime between now 378 00:21:20,859 --> 00:21:22,770 Suze: and the end of 2022 379 00:21:23,540 --> 00:21:26,860 Suze: And definitely into 2023. 380 00:21:27,340 --> 00:21:32,560 Suze: So it's not going to be an easy financial year, 381 00:21:33,040 --> 00:21:37,170 Suze: it may not even be an easy financial two years. 382 00:21:37,840 --> 00:21:42,359 Suze: So what should you do in 2022 383 00:21:42,740 --> 00:21:45,770 Suze: given everything that I just said to you, 384 00:21:46,740 --> 00:21:49,270 Suze: the first thing you have to do right now is 385 00:21:49,270 --> 00:21:51,450 Suze: you need to start conserving. 386 00:21:52,440 --> 00:21:56,440 Suze: Don't wait until it hits you. Don't wait until maybe 387 00:21:56,440 --> 00:22:00,060 Suze: you lose a job. Don't wait, don't wait, don't wait. 388 00:22:00,440 --> 00:22:04,370 Suze: You need to start conserving right now. If you have 389 00:22:04,369 --> 00:22:07,850 Suze: credit card debt, start paying it off, get out of debt, 390 00:22:08,340 --> 00:22:12,699 Suze: stop going out to eat so many times, stop celebrating 391 00:22:12,770 --> 00:22:15,770 Suze: as if again the money faucet is never going to 392 00:22:15,770 --> 00:22:19,590 Suze: turn off because I'm telling you, I personally believe it 393 00:22:19,600 --> 00:22:20,960 Suze: is going to turn off. 394 00:22:21,740 --> 00:22:26,170 Suze: So you have got to start conserving right now 395 00:22:27,440 --> 00:22:28,060 Suze: two 396 00:22:28,640 --> 00:22:30,460 Suze: when interest rates go up, 397 00:22:31,240 --> 00:22:35,710 Suze: credit card interest rates also go up as well as 398 00:22:35,710 --> 00:22:38,560 Suze: home equity lines of credit go up 399 00:22:39,460 --> 00:22:41,780 Suze: a little bit of a reiteration of what I just 400 00:22:41,780 --> 00:22:42,960 Suze: said to get out of debt, 401 00:22:43,740 --> 00:22:47,109 Suze: but you, if you have a home equity line of credit, 402 00:22:47,119 --> 00:22:50,260 Suze: you have got to pay that off right here and 403 00:22:50,260 --> 00:22:52,670 Suze: right now and figure out how to do it 404 00:22:53,140 --> 00:22:56,480 Suze: because the interest rate in most of those cases, your 405 00:22:56,490 --> 00:23:00,139 Suze: interest rate is going to go up and up and up. 406 00:23:00,150 --> 00:23:03,010 Suze: You do not want to be in a home equity 407 00:23:03,010 --> 00:23:06,080 Suze: line of credit or with a credit card with variable 408 00:23:06,090 --> 00:23:09,160 Suze: interest rates because those rates are going to go up. 409 00:23:09,740 --> 00:23:12,810 Suze: So that relates to the first thing I told you 410 00:23:12,810 --> 00:23:15,460 Suze: to start conserving and get out of debt. 411 00:23:16,440 --> 00:23:18,449 Suze: That's a reinforcement of that. 412 00:23:18,940 --> 00:23:21,740 Suze: The third thing you need to do is I need 413 00:23:21,750 --> 00:23:24,960 Suze: all of you to really look closely at your investments. 414 00:23:25,840 --> 00:23:29,859 Suze: Seriously. You need to know what you have. 415 00:23:30,340 --> 00:23:32,640 Suze: I was talking to somebody the other day that one 416 00:23:32,640 --> 00:23:35,530 Suze: of the more brilliant women I've ever known in my 417 00:23:35,530 --> 00:23:36,060 Suze: life 418 00:23:36,840 --> 00:23:39,610 Suze: and I simply said to her, so what's your 401k. 419 00:23:39,609 --> 00:23:40,460 Suze: Invested in? 420 00:23:40,940 --> 00:23:42,770 Suze: And she said, I don't know, 421 00:23:43,340 --> 00:23:44,270 Suze: I haven't looked at it. 422 00:23:44,940 --> 00:23:46,260 Suze: I haven't thought about it. 423 00:23:47,030 --> 00:23:49,860 Suze: You cannot have that answer. 424 00:23:50,340 --> 00:23:54,090 Suze: You need to look at where you are invested. Are 425 00:23:54,090 --> 00:23:56,980 Suze: you in bond funds? Are you in individual bonds? Are 426 00:23:56,980 --> 00:24:01,670 Suze: you in growth stocks, technology stocks, stocks that pay a dividend, 427 00:24:02,040 --> 00:24:05,020 Suze: mutual funds or exchange traded funds that pay a dividend 428 00:24:05,030 --> 00:24:08,560 Suze: because you need to make sure that you have a 429 00:24:08,560 --> 00:24:14,389 Suze: solid foundation with your money and what you continue to 430 00:24:14,390 --> 00:24:15,449 Suze: invest in. 431 00:24:16,240 --> 00:24:19,700 Suze: So those are the three things that I need you 432 00:24:19,700 --> 00:24:20,260 Suze: to do 433 00:24:21,140 --> 00:24:22,160 Suze: again. 434 00:24:22,540 --> 00:24:26,860 Suze: Just, I'm going to break down now individual categories for you. 435 00:24:27,240 --> 00:24:28,170 Suze: Real estate, 436 00:24:29,040 --> 00:24:32,270 Suze: I think real estate is going to do just fine. 437 00:24:32,640 --> 00:24:35,000 Suze: Do I think it's going to go up 17% a 438 00:24:35,000 --> 00:24:36,660 Suze: year or whatever that is? No, 439 00:24:37,140 --> 00:24:40,850 Suze: But I do think it will continue to go up 5%. 440 00:24:40,859 --> 00:24:45,860 Suze: Real estate usually does pretty well during a recession. 441 00:24:46,240 --> 00:24:48,460 Suze: Got that everybody mortgages 442 00:24:49,540 --> 00:24:53,180 Suze: do. I think mortgages will continue up. Oh you betcha 443 00:24:53,190 --> 00:24:53,950 Suze: I do 444 00:24:54,340 --> 00:24:58,310 Suze: without a shadow of a doubt. Also I mentioned it earlier. 445 00:24:58,320 --> 00:25:02,960 Suze: Do not refinance your house to take cash out if 446 00:25:02,960 --> 00:25:05,350 Suze: you have a low interest rate mortgage 447 00:25:05,840 --> 00:25:08,950 Suze: and you're going to refinance to a high interest rate mortgage. 448 00:25:08,960 --> 00:25:11,860 Suze: You are asking for trouble 449 00:25:12,640 --> 00:25:16,210 Suze: Stock market. I briefly told you what I thought, but 450 00:25:16,210 --> 00:25:19,560 Suze: I do think it's going to continue down 451 00:25:20,140 --> 00:25:23,670 Suze: and it will continue down until it is ready to 452 00:25:23,670 --> 00:25:25,170 Suze: turn around. 453 00:25:25,540 --> 00:25:27,850 Suze: But again, I think it could bounce 454 00:25:28,640 --> 00:25:30,050 Suze: These next two weeks 455 00:25:30,540 --> 00:25:34,530 Suze: and then start down again. I will reiterate once again, 456 00:25:34,540 --> 00:25:39,020 Suze: if you are investing, can you invest in dividend paying stocks? 457 00:25:39,030 --> 00:25:43,480 Suze: Can you invest in stocks that are in industries that 458 00:25:43,480 --> 00:25:47,550 Suze: are favored? And right now oil is still favored 459 00:25:48,040 --> 00:25:51,010 Suze: and I'll talk about that in a second, but just 460 00:25:51,010 --> 00:25:56,560 Suze: make sure that you are not in highly, highly speculative companies. 461 00:25:56,560 --> 00:25:56,950 Suze: Now 462 00:25:57,940 --> 00:25:59,050 Suze: with that said, 463 00:25:59,640 --> 00:26:02,760 Suze: there are two companies that I've talked about in the 464 00:26:02,760 --> 00:26:03,450 Suze: past 465 00:26:04,040 --> 00:26:06,670 Suze: that I myself was investing in 466 00:26:07,040 --> 00:26:09,670 Suze: and believed in tremendously 467 00:26:10,040 --> 00:26:14,560 Suze: and that was ARKK Innovation Fund as well. As 468 00:26:14,940 --> 00:26:15,660 Suze: Upstart, 469 00:26:16,440 --> 00:26:20,040 Suze: Upstart was blown out of the water. It's now down 470 00:26:20,050 --> 00:26:23,960 Suze: at about $37 a share all the way down. 471 00:26:24,540 --> 00:26:27,900 Suze: If you own it, I would not be selling it 472 00:26:27,900 --> 00:26:31,730 Suze: right here. Let's just see what happens. And if the 473 00:26:31,740 --> 00:26:35,109 Suze: CEO can explain a few of the things that went 474 00:26:35,119 --> 00:26:38,160 Suze: on and let's see what happens with the company. 475 00:26:38,940 --> 00:26:41,760 Suze: I'll let you know if you should get out of it. 476 00:26:42,340 --> 00:26:46,750 Suze: As far as ARKK goes long, long term investment. We'll 477 00:26:46,750 --> 00:26:49,540 Suze: see if Cathy can pull it out or not. But 478 00:26:49,540 --> 00:26:53,420 Suze: those were never recommendations that you should put a lot 479 00:26:53,430 --> 00:26:54,359 Suze: of money in. 480 00:26:54,940 --> 00:26:58,290 Suze: Those are recommendations where you just put a little amount 481 00:26:58,290 --> 00:27:02,100 Suze: of money in and you see what happens. Am I 482 00:27:02,100 --> 00:27:05,610 Suze: shocked about upstart? I'm shocked along with, I can't even 483 00:27:05,609 --> 00:27:08,169 Suze: tell you how many other people it was one of 484 00:27:08,170 --> 00:27:11,670 Suze: the Motley Fool's most favorite picks and everyone 485 00:27:12,040 --> 00:27:14,560 Suze: almost of their newsletters that they put out. 486 00:27:14,940 --> 00:27:18,990 Suze: So everybody is in shock right now. But let's see 487 00:27:18,990 --> 00:27:19,950 Suze: what happens 488 00:27:20,440 --> 00:27:25,170 Suze: right now. It doesn't pay to sell at these prices. Okay. 489 00:27:26,340 --> 00:27:28,560 Suze: Next interest rates. 490 00:27:29,140 --> 00:27:32,530 Suze: I do think interest rates will continue up. I told 491 00:27:32,530 --> 00:27:33,060 Suze: you that 492 00:27:33,540 --> 00:27:37,350 Suze: and they will continue up probably until October 493 00:27:37,840 --> 00:27:39,960 Suze: Let's talk about bond funds 494 00:27:40,340 --> 00:27:42,050 Suze: and individual bonds 495 00:27:43,040 --> 00:27:46,230 Suze: a long time ago now, I told all of you 496 00:27:46,440 --> 00:27:48,950 Suze: that if you were in long term bond funds 497 00:27:49,540 --> 00:27:53,860 Suze: and in some cases intermediate bond funds, if the intermediate 498 00:27:53,869 --> 00:27:57,359 Suze: maturity was long, like 10 years or so, 499 00:27:58,440 --> 00:27:59,460 Suze: you should get out 500 00:28:00,840 --> 00:28:03,449 Suze: and here we are now months later. And many of 501 00:28:03,450 --> 00:28:06,960 Suze: those funds have absolutely gone down 502 00:28:07,340 --> 00:28:10,159 Suze: 10% 12%. They've gone down 503 00:28:10,840 --> 00:28:13,770 Suze: if you haven't gotten out yet. 504 00:28:14,740 --> 00:28:18,850 Suze: Just stay right there at this point in time. 505 00:28:19,340 --> 00:28:22,060 Suze: Will they go down again. They may 506 00:28:22,540 --> 00:28:25,879 Suze: but believe it or not, bond prices are strengthening a 507 00:28:25,880 --> 00:28:30,160 Suze: little bit here. We'll see what happens. But bond funds, 508 00:28:30,780 --> 00:28:34,850 Suze: have never been my favorite investment on any level. 509 00:28:35,340 --> 00:28:39,770 Suze: I have always preferred individual bonds. 510 00:28:40,240 --> 00:28:44,190 Suze: And most financial advisers say Suze, most people don't have 511 00:28:44,190 --> 00:28:46,950 Suze: enough money to get a variety of bonds they need. 512 00:28:46,960 --> 00:28:50,770 Suze: All types of diversification. Oh, give me a break. 513 00:28:51,240 --> 00:28:54,410 Suze: If you invest in Treasuries, I don't care if you 514 00:28:54,410 --> 00:28:58,530 Suze: put 100% of your money in one treasury, it's guaranteed 515 00:28:58,540 --> 00:29:01,960 Suze: by the authority of the United States government. I don't 516 00:29:01,960 --> 00:29:03,860 Suze: care about diversification. 517 00:29:04,640 --> 00:29:07,670 Suze: I remember all the way back in 1980 518 00:29:08,140 --> 00:29:09,670 Suze: '81 when 519 00:29:10,140 --> 00:29:12,920 Suze: Mutual funds had first kind of come about at least 520 00:29:12,920 --> 00:29:16,610 Suze: at Merrill Lynch. And everybody was selling bond funds and 521 00:29:16,610 --> 00:29:20,960 Suze: they were all being paid a 5% commission 522 00:29:21,640 --> 00:29:24,790 Suze: To the broker who sold one. So if somebody put 523 00:29:24,790 --> 00:29:28,060 Suze: $100,000 into a bond fund, 524 00:29:28,540 --> 00:29:30,850 Suze: They would get a $5,000 commission. 525 00:29:31,640 --> 00:29:37,360 Suze: Suze was putting people's money into 30 year Treasury bonds 526 00:29:37,940 --> 00:29:42,170 Suze: Locking in 14.5% of an interest rate. 527 00:29:42,940 --> 00:29:47,350 Suze: and I made a commission of $25. Whether it was, 528 00:29:47,840 --> 00:29:51,180 Suze: You know, $100,000, a million dollars, it could have been 529 00:29:51,180 --> 00:29:56,450 Suze: $50 million and I would have earned a Comission of $25,. 530 00:29:57,040 --> 00:30:00,270 Suze: I'll never forget all the brokers making fun of me going, 531 00:30:00,270 --> 00:30:02,050 Suze: what is wrong with you, Suze? 532 00:30:02,540 --> 00:30:04,850 Suze: Well, as time went on 533 00:30:05,440 --> 00:30:09,250 Suze: and interest rates that were really high back then because 534 00:30:09,250 --> 00:30:11,860 Suze: inflation was really high back then 535 00:30:12,340 --> 00:30:14,770 Suze: started to come down. 536 00:30:15,740 --> 00:30:19,980 Suze: And what was interesting is that the Treasury bonds that 537 00:30:19,990 --> 00:30:21,170 Suze: I purchased 538 00:30:21,740 --> 00:30:25,670 Suze: Were still paying the clients 14%. 539 00:30:26,440 --> 00:30:30,720 Suze: But as his interest rates went from 14 to 12 540 00:30:30,730 --> 00:30:35,860 Suze: to 10 to 7, their bonds doubled in value. 541 00:30:37,240 --> 00:30:40,330 Suze: So if they wanted to they could have sold those 542 00:30:40,340 --> 00:30:41,260 Suze: bonds 543 00:30:42,040 --> 00:30:45,740 Suze: And reinvested and had twice as much money. Although they 544 00:30:45,740 --> 00:30:49,530 Suze: would have had paid taxes on it and gotten 7%, 545 00:30:49,530 --> 00:30:53,350 Suze: which would have given them the exact same interest as 546 00:30:53,350 --> 00:30:55,660 Suze: half the money at 14%. 547 00:30:56,540 --> 00:30:59,860 Suze: The people who had purchased the bond funds, 548 00:31:00,640 --> 00:31:02,950 Suze: their interest rate did not stay 549 00:31:03,440 --> 00:31:04,060 Suze: high 550 00:31:04,440 --> 00:31:07,170 Suze: because as interest rates went down, 551 00:31:07,540 --> 00:31:10,310 Suze: this is a lesson for all of you. As interest 552 00:31:10,310 --> 00:31:11,950 Suze: rates went down, 553 00:31:12,740 --> 00:31:15,770 Suze: new money would go into that fund, 554 00:31:16,240 --> 00:31:17,860 Suze: people would invest in it. 555 00:31:18,340 --> 00:31:20,460 Suze: They would have to buy bonds 556 00:31:21,140 --> 00:31:23,960 Suze: at the current interest rate which was lower 557 00:31:24,540 --> 00:31:28,470 Suze: then a few years before. Which brought down the overall 558 00:31:28,480 --> 00:31:32,670 Suze: interest rate of everybody who was in that bond fund. 559 00:31:33,740 --> 00:31:37,370 Suze: And as interest rates went down, the value of the 560 00:31:37,370 --> 00:31:40,360 Suze: bond fund did not go up as much 561 00:31:40,840 --> 00:31:44,709 Suze: as the value of my individual Treasury bonds that I 562 00:31:44,710 --> 00:31:46,450 Suze: was selling my clients. 563 00:31:47,640 --> 00:31:52,670 Suze: So I don't like bond funds just know it. Everybody. 564 00:31:53,340 --> 00:31:56,670 Suze: I love individual bonds. 565 00:31:57,540 --> 00:32:02,040 Suze: An individual bond has a maturity date and a fixed 566 00:32:02,050 --> 00:32:03,360 Suze: interest rate. 567 00:32:03,940 --> 00:32:07,680 Suze: A bond fund does not have a maturity date and 568 00:32:07,680 --> 00:32:09,960 Suze: it does not have a fixed interest rate. 569 00:32:11,240 --> 00:32:12,950 Suze: There will come a time 570 00:32:13,340 --> 00:32:14,560 Suze: somewhere here, 571 00:32:14,940 --> 00:32:19,150 Suze: Maybe in October maybe in November, where I will tell 572 00:32:19,150 --> 00:32:23,460 Suze: you now is the time to buy 30 year bonds 573 00:32:24,440 --> 00:32:26,360 Suze: and 20 year bonds 574 00:32:26,840 --> 00:32:29,900 Suze: long term bonds so that you can lock in the 575 00:32:29,900 --> 00:32:32,560 Suze: high interest rates as interest rates have gone up 576 00:32:33,040 --> 00:32:36,100 Suze: and as interest rates do go back down again the 577 00:32:36,100 --> 00:32:39,160 Suze: value of your bond will increase. 578 00:32:39,640 --> 00:32:41,860 Suze: So there will come a time 579 00:32:42,240 --> 00:32:45,360 Suze: when I tell you to do that as an investment. 580 00:32:46,340 --> 00:32:49,330 Suze: But again right now and I mentioned it earlier, if 581 00:32:49,330 --> 00:32:52,320 Suze: you're just looking for a place to put some money 582 00:32:52,330 --> 00:32:54,510 Suze: for a short period of time, like a year or 583 00:32:54,510 --> 00:32:57,210 Suze: two and then you want it and you don't want 584 00:32:57,210 --> 00:33:00,770 Suze: to risk it, can you just look into Treasury notes 585 00:33:01,940 --> 00:33:02,770 Suze: Gold. 586 00:33:03,640 --> 00:33:05,670 Suze: I really like gold here 587 00:33:06,340 --> 00:33:09,750 Suze: But I wouldn't be buying it right now. It's at 588 00:33:09,750 --> 00:33:14,920 Suze: about $1810 an ounce. I think it absolutely could go 589 00:33:14,930 --> 00:33:15,760 Suze: lower 590 00:33:16,240 --> 00:33:19,530 Suze: when it goes lower. Maybe that will be the time 591 00:33:19,540 --> 00:33:21,360 Suze: to buy. We'll have to see 592 00:33:21,740 --> 00:33:23,270 Suze: because it very easily 593 00:33:23,840 --> 00:33:25,460 Suze: could run up again. 594 00:33:25,840 --> 00:33:28,900 Suze: But let's see. But it has been a pretty good 595 00:33:28,910 --> 00:33:30,270 Suze: inflation hedge 596 00:33:31,840 --> 00:33:33,550 Suze: unlike Bitcoin, 597 00:33:34,340 --> 00:33:37,960 Suze: that was a horrific inflation hedge, 598 00:33:38,540 --> 00:33:41,770 Suze: it did not work at all the way we thought 599 00:33:41,780 --> 00:33:42,950 Suze: it was going to work 600 00:33:44,040 --> 00:33:47,850 Suze: now. Many of you wrote me and you said Suze, 601 00:33:48,240 --> 00:33:51,230 Suze: Should we buy Bitcoin? And this was when it was 602 00:33:51,230 --> 00:33:54,350 Suze: at like 32,000 just a little bit ago. It's almost 603 00:33:54,350 --> 00:33:58,010 Suze: at 30,000 again today and I said well I don't 604 00:33:58,010 --> 00:33:58,860 Suze: think so 605 00:33:59,540 --> 00:34:01,270 Suze: the support level 606 00:34:01,940 --> 00:34:05,930 Suze: for Bitcoin meaning it goes down and if it hits 607 00:34:05,930 --> 00:34:09,640 Suze: that level it should bounce right back up again is 608 00:34:09,640 --> 00:34:13,060 Suze: $27,200 a Bitcoin. 609 00:34:14,040 --> 00:34:15,660 Suze: So just know that 610 00:34:16,040 --> 00:34:18,950 Suze: Bitcoin, there's no way to know what Bitcoin is going 611 00:34:18,950 --> 00:34:23,290 Suze: to do or not do, but please remember everybody you 612 00:34:23,290 --> 00:34:25,460 Suze: did not buy Bitcoin 613 00:34:26,140 --> 00:34:29,250 Suze: so that it would just go up a little bit 614 00:34:29,260 --> 00:34:32,790 Suze: or you would double your money. Bitcoin is an investment 615 00:34:32,800 --> 00:34:34,470 Suze: whose time will come 616 00:34:35,040 --> 00:34:38,460 Suze: and years from now, let's see what happens to it. 617 00:34:39,239 --> 00:34:43,359 Suze: So if you want to start little by little here, okay, 618 00:34:43,370 --> 00:34:46,060 Suze: but I still think it could possibly go a little 619 00:34:46,060 --> 00:34:49,810 Suze: bit lower and then go all over the place just 620 00:34:49,810 --> 00:34:52,969 Suze: so you know, it seems like it is following the 621 00:34:52,969 --> 00:34:53,850 Suze: NASDAQ 622 00:34:54,239 --> 00:34:57,470 Suze: which is where technology stocks happen to be 623 00:34:57,840 --> 00:35:01,469 Suze: on the topic of Bitcoin. I just want to say 624 00:35:01,480 --> 00:35:07,500 Suze: Ethereum is starting to prove very, very interesting in how 625 00:35:07,500 --> 00:35:11,160 Suze: they are changing their model and what's to come of it. 626 00:35:11,739 --> 00:35:12,160 Suze: So 627 00:35:12,739 --> 00:35:15,670 Suze: it may be in a period of time here, 628 00:35:16,739 --> 00:35:22,350 Suze: Ethereum maybe something we want to consider here sooner than later. 629 00:35:23,040 --> 00:35:23,759 Suze: Oil 630 00:35:24,239 --> 00:35:28,970 Suze: As I said earlier, oil is at $110 right now 631 00:35:29,640 --> 00:35:33,440 Suze: very easily could go to 1 13, 1 17, you 632 00:35:33,440 --> 00:35:36,670 Suze: know that I have been a fan of oil, I 633 00:35:36,670 --> 00:35:40,189 Suze: don't understand why in the world, oil would go down 634 00:35:40,260 --> 00:35:44,230 Suze: as soon as China opens up again, there will be 635 00:35:44,230 --> 00:35:47,920 Suze: more of a demand for oil, depending what happens with 636 00:35:47,930 --> 00:35:49,969 Suze: Ukraine and things like that. 637 00:35:50,040 --> 00:35:54,280 Suze: I just don't see oil going down that much. So 638 00:35:54,280 --> 00:35:57,560 Suze: I still like the stocks that I mentioned to all 639 00:35:57,560 --> 00:35:59,760 Suze: of you, I still like Chevron, 640 00:36:00,130 --> 00:36:01,330 Suze: I still like XLE 641 00:36:02,230 --> 00:36:07,600 Suze: I still like Devon I like Pioneer, I like Kotara 642 00:36:07,600 --> 00:36:11,160 Suze: for natural gas, I like that a lot. 643 00:36:12,130 --> 00:36:15,100 Suze: And I do think it's important though that you don't 644 00:36:15,110 --> 00:36:19,509 Suze: over expose yourself to oil, but you watch it also 645 00:36:19,520 --> 00:36:21,040 Suze: very carefully 646 00:36:21,830 --> 00:36:26,520 Suze: overall, summarizing everything that I just said to you, I 647 00:36:26,520 --> 00:36:29,350 Suze: think we're going to still have a rough year. 648 00:36:29,730 --> 00:36:33,410 Suze: But I think if you conserve if you're invested in 649 00:36:33,410 --> 00:36:36,480 Suze: the right place with time on your side, if you're 650 00:36:36,480 --> 00:36:41,220 Suze: getting dividends while these markets are going down, if you 651 00:36:41,219 --> 00:36:44,850 Suze: aren't speculating here and going for the fast buck 652 00:36:45,430 --> 00:36:47,740 Suze: and you are just consistent 653 00:36:48,230 --> 00:36:51,640 Suze: with bonds and with gold and with Bitcoin and with 654 00:36:51,640 --> 00:36:54,859 Suze: your real estate and your mortgages and your credit cards 655 00:36:54,870 --> 00:36:57,960 Suze: and everything like that and you keep everything that I 656 00:36:57,960 --> 00:36:59,450 Suze: said in mind, 657 00:37:00,730 --> 00:37:03,590 Suze: I think you'll be okay. But one way or the other, 658 00:37:03,600 --> 00:37:08,960 Suze: you now know what to do in 2022.