Speaker 1: Welcome to Shared Lunch, brought to you by Chairsas at
Speaker 1: Cheers EA's. We're on a mission to crack financial empowerment
Speaker 1: for everyone, and these convos are a part of that,
Speaker 1: a chance for us to take a deeper dive into
Speaker 1: what's going on in the world of wealth. I'm a
Speaker 1: Sonya Williams, co founder and co CEO at Chairs EAS
Speaker 1: and today we're joined by Bryce from Equity Mates to
Speaker 1: discuss what's going on in the markets and how investors
Speaker 1: should be navigating these times.
Speaker 2: Investing involves for risk you might lose the money you
Speaker 2: start with. We recommend talking to a licensed financial advisor.
Speaker 2: We also recommend reading product disclosure documents before deciding to invest.
Speaker 2: Everything you're about to see and hear is current at
Speaker 2: the time of recording.
Speaker 1: Before we get started, I want to acknowledge the Getigal
Speaker 1: people of the Ura nation, the traditional custodians of the land,
Speaker 1: water and sky where we're filming from today, and pay
Speaker 1: respects to elders, past, present and emerging.
Speaker 3: Welcome Bryce, Thanks for having me. Great to have you here.
Speaker 1: So there's been so much interesting stuff happening in the
Speaker 1: markets at the moment. Can you tell us a bit
Speaker 1: about what's going on.
Speaker 4: You're right, there has been a lot. It's been a
Speaker 4: pretty it's been a pretty active period of time over
Speaker 4: the last few weeks, and it's all been driven by
Speaker 4: some of the big announcements that Donald Trump, President of
Speaker 4: the United States, has made regarding his policy on tariffs.
Speaker 4: And so there's now this global trade war going on
Speaker 4: with real serious fears that it is going to lead
Speaker 4: to a global recession. And of course when we're in
Speaker 4: a recession, it's going to slow down economies around the world,
Speaker 4: and a lot of the companies that we're invested in
Speaker 4: are going to be impacted. You think Apple, you know,
Speaker 4: it imports a lot of its products from China or
Speaker 4: its parts for its iPhones, and so everyone is uncertain
Speaker 4: about what is going to happen because Trump is a
Speaker 4: very unpredictable person, and so markets are now reacting and
Speaker 4: there's a.
Speaker 1: Huge sell off and because we can see that you know,
Speaker 1: you're talking about the tariff being a cost of exporting,
Speaker 1: so that drives cost to business, but it would also
Speaker 1: mean that the cost of goods go up, so would
Speaker 1: hurt consumers too.
Speaker 4: Absolutely. Yeah, So there's I mean, that is how businesses
Speaker 4: deal with it, they don't necessarily absorb that cost. Let's
Speaker 4: use Apple as another example. They're likely to increase the
Speaker 4: cost of iPhones, They're likely to increase the cost of
Speaker 4: MacBook pros. That is going to impact us, and that's
Speaker 4: going to flow it. That's going to have impact on inflation.
Speaker 4: And we know we've spent the last three or four
Speaker 4: years globally trying to push down inflation, and there's real
Speaker 4: fears again that this is just going to push inflation
Speaker 4: back up. And central banks are now uncertain about the
Speaker 4: future and what to do there. So it's not a
Speaker 4: pretty picture, that's for sure, but that this is this
Speaker 4: is markets.
Speaker 3: Yeah, so with all of that, is now a good
Speaker 3: time to elist.
Speaker 4: I think I would couch it and say the only
Speaker 4: certainty is uncertainty at the moment. And this is not
Speaker 4: an unusual thing to happen in markets. So we've seen
Speaker 4: a pullback in one of the big indexes over in
Speaker 4: the state. It's the Nasdaq, which is a tech heavy
Speaker 4: home to some of the biggest tech companies. But over
Speaker 4: the long term, this is part of a market cycle.
Speaker 4: So every sort of four to five years you will
Speaker 4: see are twenty percent full or thereabouts and so you know,
Speaker 4: personally taking these opportunities to get into the market or
Speaker 4: to add to my portfolio, is it's an opportunistic point
Speaker 4: or time to do it. And we are seeing our
Speaker 4: community really sort of rallying around this moment. That's not
Speaker 4: to say though, that we're anywhere near the bottom. It
Speaker 4: could get completely worse. It could bounce from here. You
Speaker 4: cannot time the market. It is impossible to time the market.
Speaker 4: And so I think the more important thing is if
Speaker 4: you are looking at the markets now and getting engaged,
Speaker 4: it's actually thinking about how you can build a long
Speaker 4: term investing strategy that sees you through these market sort
Speaker 4: of movements and you don't have to worry about is
Speaker 4: now a good time to buy or sell?
Speaker 1: Yeah, Like we often talk about how envisting in itself
Speaker 1: is inherently optimistic. You know, leave that things like you
Speaker 1: believe in growth or you believe that people are going
Speaker 1: to be successful through that. But often it's like what
Speaker 1: changes or the uncertainty is what changes, like our assumptions
Speaker 1: around how that business is going to operate in the
Speaker 1: short term. But there's a belief that people will adapt
Speaker 1: and people will find a new way to be successful
Speaker 1: in the new circumstance.
Speaker 4: Absolutely. I think there's a stat that I always remind
Speaker 4: myself in these times when the market has just been
Speaker 4: wiped and I'm looking at my portfolio and I've lost
Speaker 4: a lot of money. It's that there is no twenty
Speaker 4: year period on the S and P five hundred where
Speaker 4: if you had invested in year one and stuck through
Speaker 4: the year twenty that you would have lost money. There
Speaker 4: is just no instance where the market has not recovered.
Speaker 4: So despite the wall of worry that the world has
Speaker 4: gone through over the last hundred years, world wars, disease,
Speaker 4: you know, COVID, changes in presidency, like, there has been
Speaker 4: so many reasons for the market to not perform well,
Speaker 4: there is no instance where it hasn't recovered and gone
Speaker 4: on to hit new highs. And so I look at
Speaker 4: this period. You know, I've gone through the COVID crash,
Speaker 4: twenty twenty two, there was a pullback two thousand and
Speaker 4: seven global financial crisis. I was in high school, and
Speaker 4: through all of those moments, I always look back and go, Damn,
Speaker 4: that was actually a really good buying opportunity, and I
Speaker 4: wish I'd been more active and not as fearful as
Speaker 4: the markets sort of make you feel. And so that's
Speaker 4: kind of how I'm trying to approach this now.
Speaker 1: Yeah, Like you know, you talk about your experience, but
Speaker 1: you've been in visting since you were five, haven't.
Speaker 4: You very young?
Speaker 2: Yeah?
Speaker 1: Yeah, and so you would have seen like these moments
Speaker 1: as you say, they kind of happen around every five years,
Speaker 1: and you know, our platform has been around now, you know,
Speaker 1: through the COVID pandemic things like that.
Speaker 3: Is there anything you're observing about.
Speaker 1: How people are reacting this time versus the times that
Speaker 1: have happened over the last free while.
Speaker 4: I think this time there is a real feeling of
Speaker 4: excitement from our community and A and from what I'm seeing,
Speaker 4: their investing behavior is the right investing behavior, which is
Speaker 4: either I'm not going to do anything. I'm just going
Speaker 4: to stick to my strategy and know that if I'm
Speaker 4: investing every month two hundred dollars a month, I'm just
Speaker 4: going to keep doing that and know that I'm going
Speaker 4: to get the market as it falls and if it recovers,
Speaker 4: I'm going to get it because trying to time it
Speaker 4: is just a fool's game. Or it's like I'm going
Speaker 4: to continue doing my strategy. But take this exciting moment
Speaker 4: knowing that I can pick up some of the stocks
Speaker 4: that I've been looking out on my watch list for
Speaker 4: cheaper than they were three months ago. I think I
Speaker 4: look back at COVID and that there was a real
Speaker 4: not so much fear, but a lot more a lot
Speaker 4: more uncertainty, and people very scared of what was going on.
Speaker 4: But I think we've now had five or six years
Speaker 4: post that where people have sort of looked back at
Speaker 4: that and said, I wish, knowing what I know now,
Speaker 4: I wish I'd actually been more strategic and put some
Speaker 4: money in so our community is excited at the moment. Yeah,
Speaker 4: it's like you could easily sell out and be fearful.
Speaker 4: That's the worst thing you can do. But yeah, I
Speaker 4: think you probably see it on shares this platform as well,
Speaker 4: like huge engagement levels and investing in those core long
Speaker 4: term ETFs as well, not sort of punting on individual
Speaker 4: you know, gold specky stocks.
Speaker 1: Yeah, like we've seen still more people buying and selling
Speaker 1: through the platform and people really sticking at that strategy.
Speaker 1: As you say, Like what we have noticed over the
Speaker 1: last few months as a shift from maybe investing in
Speaker 1: individual companies into putting more into ETFs.
Speaker 3: Why do you think that would be happening. Is that
Speaker 3: something you're noticing as well.
Speaker 1: Or like what you talked about, you know, investing for
Speaker 1: the time, you know, how does that kind of play
Speaker 1: into it? Do you think?
Speaker 2: Well?
Speaker 4: I think like if you look back over the last
Speaker 4: sort of two or three years, the market's done incredibly
Speaker 4: well overall. Like you know, we've seen in video push
Speaker 4: the market to sort of record high as a lot
Speaker 4: of the tech companies have pushed well. So if you've
Speaker 4: just been exposed generally to the market, you've done incredibly well.
Speaker 4: There hasn't really been a need to invest in individual stocks.
Speaker 4: I think we've seen a huge influx of new ETFs
Speaker 4: to market as well that are really interesting for a
Speaker 4: lot of our investors or our community. But I think
Speaker 4: like at the end of the day, ETFs are just
Speaker 4: such a nice wrapper and a nice stress free way
Speaker 4: of investing long term in the market, and people are
Speaker 4: sort of looking at the opportunity that has been really
Speaker 4: playing out since the start of the year, which is
Speaker 4: the market has been pulling back. This isn't just something
Speaker 4: that's happened over the last few weeks. Although it's been accelerated,
Speaker 4: and so you know, you know, we talk about the
Speaker 4: opportunity or dollar cost averaging, and so now is that
Speaker 4: time where our audience is sort of saying, well, hey,
Speaker 4: there's an opportunity here, I might start topping up the portfolio,
Speaker 4: and the best way to do that is low cost,
Speaker 4: well diversified ETFs that are going to give me global exposure.
Speaker 4: And so yeah, we love that.
Speaker 1: Yeah, yeah, on dollar cost averaging. And I think especially
Speaker 1: like a good reminder that it's a pretty poor strategy
Speaker 1: if you don't keep investing while it's while the market
Speaker 1: is going down. So it's like important if that is
Speaker 1: your strategy to kind of stick with.
Speaker 4: It one hundred percent, Like this is the moment that
Speaker 4: you want to be dollar cost averaging, Like there's no
Speaker 4: point thinking you're a hero when the market is going
Speaker 4: up and putting money in every month as the market
Speaker 4: goes up, and then as it starts to fall, you
Speaker 4: stop doing that because it's when it's falling that you're
Speaker 4: really getting the benefit of dollar cost averaging, because you're
Speaker 4: getting more for the money that you're putting in than
Speaker 4: on the other way. And I think doing that it
Speaker 4: removes any emotion from your investing strategy. I think one
Speaker 4: of the biggest things I've learned. I look back at COVID,
Speaker 4: I look back at global financial crisis, and like it
Speaker 4: can be paralyzing. You can make some really bad decisions
Speaker 4: when you're going through a traumatic experience, whereas having a
Speaker 4: strategy that is just clear takes out the emotion. You
Speaker 4: know what you're investing in and you just stick to it.
Speaker 4: You could actually turn off the news and not know
Speaker 4: what is going on and still have an incredibly effective
Speaker 4: investing strategy over the long term and have a very
Speaker 4: healthy outcome because things can change so quickly. I mean
Speaker 4: the stats show after a market fall of twenty percent
Speaker 4: in the following three months, it can rebound incredibly quickly.
Speaker 4: We look at COVID, it was the fastest rebound in history.
Speaker 4: If you tried to time that, you would have missed it.
Speaker 4: And the stats also show that if you miss that rebound,
Speaker 4: then the difference in investing outcomes can be significant, so
Speaker 4: you you don't want to try and sell out. And
Speaker 4: that's why a dollar cost averaging, which is effectively putting
Speaker 4: in the same amount of money at the same cadence,
Speaker 4: is approven strategy.
Speaker 1: Yeah, and so like I mean it's very real, like
Speaker 1: when you see your portfolio going down, you know, like
Speaker 1: there's that feeling like there's you know, it's kind of
Speaker 1: important to acknowledge that that sucks. It's like a really
Speaker 1: hardly to see and like, but what I'm kind of
Speaker 1: noticing is like there's more of a cinema of like, yeah,
Speaker 1: that feels like that.
Speaker 3: But do I need to do anything about that? And
Speaker 3: I mean do people need to do anything different?
Speaker 4: No? No, no, no is the answer. Like do not sell.
Speaker 4: If you have cash and you want to be opportunistic,
Speaker 4: of course buy, but also be cautious of what you're
Speaker 4: buying and how much you're putting in because, as we said,
Speaker 4: we don't know what's going to happen from here. Trump
Speaker 4: might come out and say, you know what, We're going
Speaker 4: to put more tariffs on everyone around the world, and
Speaker 4: you can expect the markets are not going to appreciate that.
Speaker 4: And so if you have cash sitting on the side
Speaker 4: and you put the whole lot in now, do so
Speaker 4: knowing that it could fall further, but you've still got
Speaker 4: in at an opportunistic time. Or take that lump some
Speaker 4: of cash and say, okay, let's just see how it
Speaker 4: plays out. But every month, I'm going to put a
Speaker 4: little bit more in. But I think to answer the
Speaker 4: first part of that question, it's like, no, you don't
Speaker 4: have to do anything except turn the app off. If
Speaker 4: you are one of those people and I have been there,
Speaker 4: who looks at it and seize the red and you
Speaker 4: think and five or six years of work down the drain,
Speaker 4: I've just lost all this money. Don't look at it
Speaker 4: and know that over time, your strategy has been successful
Speaker 4: and it's proven over the last hundred years to be
Speaker 4: a successful strategy. Just investing low cost into the market,
Speaker 4: try and like tune out of the noise. I think
Speaker 4: as well, like it goes back to the foundations of
Speaker 4: setting up a good investment strategy, which is you shouldn't
Speaker 4: be investing any money that you need, like you don't
Speaker 4: want to. I don't have any money in my portfolio
Speaker 4: now when I'm like, okay, I'm going to need to
Speaker 4: sell some of this to pay my mortgage. I'm going
Speaker 4: to need to sell some of this if I have
Speaker 4: an emergency. And that kind of gives a bit of
Speaker 4: comfort because I can sit back and say, you know,
Speaker 4: I've lost twenty thirty, forty percent whatever, But that's okay
Speaker 4: because if I zoom out, I know that it's going
Speaker 4: to go up. And I also don't need this right now.
Speaker 3: Yeah, that's an important point.
Speaker 1: Like we're saying it's a good time to invest, you know,
Speaker 1: through this, but it's like if you need cash on hand,
Speaker 1: like it's a good time to invist if you can
Speaker 1: kind of write out the long term, like we're not saying,
Speaker 1: and that's completely how we see investing is like that
Speaker 1: it is for the long term. Yes, And so I
Speaker 1: think that's an important, you know thing, just to tack
Speaker 1: on the end there. Do you have any kind of
Speaker 1: pills of wisdom that you are keen to share with
Speaker 1: people about kind of going through these times or through
Speaker 1: you know, the experience that you've had investing today.
Speaker 4: I think just like stick with it, read as much
Speaker 4: as you can. And I think, you know, we were
Speaker 4: talking off about Buffet and one of one sort of
Speaker 4: quote that rings true at this time is he says
Speaker 4: the most important behavior or the most important characteristic for
Speaker 4: an investor is temperament, not intellect. And I think this
Speaker 4: moment is all about managing your behavior and managing your emotions.
Speaker 4: And if you are starting from scratch right now, that's
Speaker 4: great because you've recognized that this might be an opportunity
Speaker 4: to get in. But make sure that you are setting
Speaker 4: up a strategy that you know automates as much of
Speaker 4: your process as possible, because I think if you can
Speaker 4: automate from getting paid through to investing in ETF, you
Speaker 4: don't even have to look. So I think automating it
Speaker 4: takes out the emotions and just being conscious of the
Speaker 4: opportunity that we have and that the worst thing you
Speaker 4: can be doing is selling right now. But look, as
Speaker 4: I said, remind me that this is this is not
Speaker 4: an uncommon thing to happen. This happens every four or
Speaker 4: five years. It's how markets are supposed to work. And
Speaker 4: as I said, there's so many instances in history where
Speaker 4: the market has not only recovered but gone to hit
Speaker 4: new highs. So stick with it. It might not be
Speaker 4: for another twelve or twenty four months, we don't know,
Speaker 4: but it eventually will get back to where it was.
Speaker 3: Hey, thanks heaps, Bryce.
Speaker 1: Definitely an interesting chat with everything going on as well,
Speaker 1: so I appreciate you.
Speaker 4: Having us and I think good to see that the
Speaker 4: shares is community as well getting around it and buying.
Speaker 4: I think it's an exciting time.
Speaker 1: Hey, thanks Haepspryce and thanks everyone for tuning in. You
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