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Speaker 1: Welcome to How the Money. I'm Joel and I am Matt,

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Speaker 1: and today we're asking the question is the stock market broken?

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Speaker 1: Is the stock market broken? It makes me think of

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Speaker 1: like if you've always gone to a certain candy machine.

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Speaker 1: So our kids when we go to visit uh Kate's folks,

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Speaker 1: the in laws, they've got this Eminem's machine and at

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Speaker 1: their house, Yeah, like an old timey like gumball machine

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Speaker 1: that they've stuck peanut Eminem's in with a little jar

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Speaker 1: of quarters or coins to the side of it. And

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Speaker 1: it makes me think that if we went to visit

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Speaker 1: them and the girls stuck a coin in there to

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Speaker 1: get some of those peanut Eminem's and it didn't work,

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Speaker 1: they would say, Hey, this thing's broken. This is I'm

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Speaker 1: not getting the treats. I'm not getting the candy like

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Speaker 1: I used to. And I think that's how a lot

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Speaker 1: of folks have been approaching the stock market. They've they

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Speaker 1: sort of seen it as this ultra savings account that

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Speaker 1: just only goes up in value, where they've only seen

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Speaker 1: their balances grow over time. And that's why we're asking

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Speaker 1: this question today because I think there might be some

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Speaker 1: folks wondering have things changed, Is it going to be

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Speaker 1: different this time? And they want to know what they

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Speaker 1: should be doing. That's why we're talking about investing and

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Speaker 1: talking about the stock market. Recent returns have not not

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Speaker 1: been so good if you are largely exposed to the

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Speaker 1: stock market, and future predictions aren't so great either. We're

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Speaker 1: going to kind of kind of talk about the stock

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Speaker 1: market from both of those perspectives today on the show.

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Speaker 1: Before we get to that, Matt, I want to mention

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Speaker 1: we we got feedback from a listener, Amanda, who is

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Speaker 1: participating in the How the Money Tell Your Stuff challenge,

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Speaker 1: which by the way, just updates you. I sold three things,

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Speaker 1: uh this past weekend? Got after it? That's all right?

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Speaker 1: Were you shamed? Turn on the jets. You shouldn't feel shamed. No,

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Speaker 1: I wasn't, but it really I it lit a fire

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Speaker 1: to me because it was something that I'd put on

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Speaker 1: the back burner. Why we talk about this kind of stuff.

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Speaker 1: We talk about money because we want you focusing on

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Speaker 1: your money. I got challenged talking about the challenge because

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Speaker 1: we want you to be made myself more than a

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Speaker 1: hundred bucks on those three items, which is great, And

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Speaker 1: it just felt good to clear some things out that

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Speaker 1: I've been meaning to clear out that I've been meaning

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Speaker 1: to sell. And you know what, seeing people like happy

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Speaker 1: to buy that electronic gizmo or gadget for pennies on

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Speaker 1: the dollar from what you'd buy it brand new makes

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Speaker 1: me happy to would was the electronic device we an

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Speaker 1: old iPad, like an iPad generation two that had just

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Speaker 1: gotten really slow, but some people really want those. Still

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Speaker 1: is going to be able to put that thing? We

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Speaker 1: had a chromebook that we were using for virtual school.

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Speaker 1: Rome Books are not great. They're kind of slow too,

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Speaker 1: but it was one of those things where we had

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Speaker 1: bought it during you know, on sale or something to

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Speaker 1: to help facilitate virtual school during the pandemic, and now

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Speaker 1: we're not using it anymore. I got it from the school.

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Speaker 1: We stole it from how to Scratch out of this

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Speaker 1: code that was exactly at the top. No, we actually

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Speaker 1: got it ourselves. Yeah, well, something worth mentioning to. Amanda

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Speaker 1: mentioned going to consignments words to sell some of her stuff.

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Speaker 1: That was really cool to mention because personally, I don't

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Speaker 1: know what consignment stores are like. I mean, I know

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Speaker 1: what they are, I just haven't participated in them myself.

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Speaker 1: I know that you can leave things there at the store,

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Speaker 1: they take a cut when it comes time to sell

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Speaker 1: because they've got the storefront all that kind of thing.

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Speaker 1: I don't know. In my mind, it's like this old

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Speaker 1: school term. It's like, if you go to consignment shops,

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Speaker 1: I bet you also buy stuff on layaway, Like it's

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Speaker 1: a part of the same sort of generation generational I

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Speaker 1: don't know, I think a shift in my mind. I

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Speaker 1: think of consignment stores as people who are more modern

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Speaker 1: antique enthusiasts or something like vintage people. And sometimes those

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Speaker 1: consignment stores are actually perfect for some of those items

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Speaker 1: where you're like, I think this is worth something, but

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Speaker 1: I don't know how to go about selling it. I

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Speaker 1: don't know how to find the right buyer who's going

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Speaker 1: to pay the amount that this thing is worth. And

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Speaker 1: so Amanda mentioned consignment shops for for some of those things.

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Speaker 1: I think she's got a good point. Because let's say

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Speaker 1: I've got a mid century antique and I just post

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Speaker 1: it on Facebook yard Sale myself, like I did for

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Speaker 1: Facebook Marketplace. I guess right, the chances are I am

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Speaker 1: not going to get top dollar. But but let's say

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Speaker 1: somebody else with a mid century following on Instagram of

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Speaker 1: ten thousand people. Uh, they might be able to take

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Speaker 1: that same piece and sell it for twice as much

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Speaker 1: as I could, because those the buyers that want that

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Speaker 1: kind of stuff are specifically looking at this person's page consistently.

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Speaker 1: They know they have good stuff. And so that's kind

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Speaker 1: of how I think of consignment source. I think it

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Speaker 1: can help you find the right buyer if you have

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Speaker 1: an item that's of particular specific niche value. That's that's true.

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Speaker 1: So I will sell you that bedroom set for a

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Speaker 1: little under two thousand dollars and you can take it

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Speaker 1: to the consignment shop. Okay maybe maybe No, I'll give

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Speaker 1: you eight hundred for it, and then I will go

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Speaker 1: take it the consignment I put to you for eight hundred.

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Speaker 1: Let honestly, I think I think it might end up

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Speaker 1: around like in the eight range personally. Well, there, we'll see.

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Speaker 1: That's one of the beautiful things I think about American

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Speaker 1: capitalism is people can buy things. We want to talk

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Speaker 1: about capital I know we will, we will in the sentise,

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Speaker 1: But I have something just that middle middlemen or women

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Speaker 1: can profit because of the laziness of other folks or

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Speaker 1: you know, and you can have literally I'm lazy to

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Speaker 1: business four kids, I too can be lazy and or

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Speaker 1: or busy and find I'd rather have someone else maybe

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Speaker 1: sell something on my behalf and maybe we both end

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Speaker 1: up profiting, which is But all right, enough about that, Matt,

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Speaker 1: Let's mention the beer we're having on this episode. This

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Speaker 1: one is called Escape from Logger Mountain by Flying Machine Brewing.

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Speaker 1: I think is that? What are they are? North Carolina?

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Speaker 1: They got the North Carolina logo on there or the

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Speaker 1: outline of the state. So that's how you know it's

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Speaker 1: legit came from that actual state. Looking forward to enjoying

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Speaker 1: us one today, buddy, Yeah, no doubt, me too. But

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Speaker 1: let's move on. Let's let's ask the question. Is the

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Speaker 1: stock market broken? We've got a lot of ground to

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Speaker 1: cover on this on this one, Matt. And really, when

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Speaker 1: you look at it, the stock market is the greatest

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Speaker 1: wealth creating machine in history. And investing in the market

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Speaker 1: to achieve millionaire status, like that's what people want, right,

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Speaker 1: You want to become a millionaire, You want a million

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Speaker 1: dollars in the retirement accounts. Well, that's become possible for

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Speaker 1: such a large amount of folks in this country, in particular,

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Speaker 1: thanks to workplace retirement accounts and low cost index funds.

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Speaker 1: Fidelity alone one of our favorite brokerage houses. They reported

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Speaker 1: that about four hundred and forty two investors have more

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Speaker 1: than a million dollars in their four own case as

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Speaker 1: of last year. That's just Fidelity customers. So we we

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Speaker 1: potentially have millions of people who are millionaires in this

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Speaker 1: country and it's easier to do than than ever before now.

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Speaker 1: And it makes me think, Matt of maybe, like some

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Speaker 1: of our earliest episodes of how the Money that we

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Speaker 1: like to pretend never happened because they weren't that great.

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Speaker 1: I kind of refused to go back and listen because

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Speaker 1: I don't know that I could bear the weight of

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Speaker 1: our in aptitude in those early as episodes. Not in aptitude,

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Speaker 1: just lack of total awesomeness. You can say that we've

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Speaker 1: gotten better. We've done a lot. In five D episodes,

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Speaker 1: they were functional, yea, Like I pictured almost like a

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Speaker 1: craftsman who's like a drywaller, somebody who knows how to

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Speaker 1: do drywall, Like is that drywall up on the wall,

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Speaker 1: does it hold? Does it create a wall? Yes, it's

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Speaker 1: all of those things, but there's sort of an artistry

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Speaker 1: to it, and that's what you develop over time. You

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Speaker 1: can tell bad drywall, you see the seams, you see

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Speaker 1: the tape protruding. Maybe I'm getting a little too poetic

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Speaker 1: when I show to the podcast. We just sit out

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Speaker 1: and talk. But we have gotten better at sitting down

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Speaker 1: and talking. And just just because of the path hasn't

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Speaker 1: always been smooth, I means some episodes have been better

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Speaker 1: than others, and along the way, most of our episodes

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Speaker 1: hopefully have generally gotten just a little bit easier for

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Speaker 1: people to listen to. Well, that doesn't mean that the

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Speaker 1: whole ride hasn't been worthwhile. And then those first episodes

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Speaker 1: weren't necessary in part of the growth process. And right

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Speaker 1: now it just kind of makes me think like, well,

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Speaker 1: we're experiencing some market turbulence, and future predictions of what

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Speaker 1: the stock market is going to do incoming years aren't

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Speaker 1: looking so hot either, And so I don't know, should

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Speaker 1: you not take a flight maybe because there's gonna be turbulence.

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Speaker 1: Should you not go see your grandma because on the

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Speaker 1: way there might be some bumpy bumpy ride in the air. No,

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Speaker 1: of course you're still going to take the airplane ride

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Speaker 1: in order to cut twenty hours off your trip if

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Speaker 1: flying across the country. And so today on the show,

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Speaker 1: we're gonna kind of talk about how we think you

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Speaker 1: should be thinking about the current shopping market and then

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Speaker 1: how that should also influence your your behavior. It's right, Yeah,

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Speaker 1: you're saying that the general trajectory of the stock market

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Speaker 1: has been up into the right, that's what we're talking

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Speaker 1: about today, but more recently, like what you're specifically talking

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Speaker 1: about here is volatility, because the stock market has been

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Speaker 1: in the dumps. You know, this has been a terrible

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Speaker 1: start to investing so far. Ino And like we often

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Speaker 1: see during these bouts of volatility, a lot of investors

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Speaker 1: they start wondering if if things are gonna be different

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Speaker 1: this time. Right, it's been a it's been a good

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Speaker 1: hundred years. It's been a good run. But it's all

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Speaker 1: over now. And it's not just a chicken little mindset

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Speaker 1: that's that's running amuck in your friend group. There are

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Speaker 1: a ton of different financial forecasts out there that are

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Speaker 1: being made about the fact that we're in for a

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Speaker 1: lower performance year and and even less sellar returns for

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Speaker 1: years to come. And it's not even just the talking

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Speaker 1: heads like on CNBC sutting this nonsense. We can dismiss

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Speaker 1: them pretty easily when the imney be exactly the different

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Speaker 1: investing TV shows out there, respect the companies like Fidelity,

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Speaker 1: like you just mentioned, like Vanguard, other large banks, they're

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Speaker 1: predicting average tenure future returns in the three to four

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Speaker 1: percent range, and those predictions could be significantly off in honestly,

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Speaker 1: in either direction. Of course, these are just educated guesses,

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Speaker 1: but given the last decade of incredible returns, they might

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Speaker 1: not be too far off. But even still, what do

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Speaker 1: we do with this information today? You know, should predictions

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Speaker 1: of these appar future returns affect how we should invest today?

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Speaker 1: That's what we're discussing today on the podcast. Yeah, so

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Speaker 1: you you hinted at the fact that the last ten, ten,

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Speaker 1: twelve years, Matt have been just incredible when it comes

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Speaker 1: to stock market returns. And so let's talk about that

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Speaker 1: bowl run for a second, because a lot of how

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Speaker 1: the money listeners, they've really only experienced what it looks

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Speaker 1: like to invest in the middle of a bowl run,

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Speaker 1: not counting maybe like the blip we saw in when

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Speaker 1: we thought it was the end of the world, but

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Speaker 1: that recovery, that stock market covery. Recovery in the the

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Speaker 1: teeth of the beginning of COVID was just incredibly rapid,

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Speaker 1: so most of us barely experienced it, and that we're

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Speaker 1: worried about other things too. At that exactly that that

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Speaker 1: was a not is the stock market broken, but it's

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Speaker 1: humanity broken. Yes, again, at that point there was bigger things,

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Speaker 1: and once we got that under control, it's like, oh, okay, no,

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Speaker 1: things are gonna be fine. But right now all the

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Speaker 1: focus is more on the market because there's less societally

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Speaker 1: to focus on. And when you when you look at

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Speaker 1: these returns historically, like with returns over the past couple

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Speaker 1: of years and almost average annual return since the Great Recession,

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Speaker 1: some folks in their in their twenties and early thirties,

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Speaker 1: they might have been starting to think that the stock

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Speaker 1: market literally only ever goes up. Right now, you only

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Speaker 1: get those peanut eminem's anytime you want, think wait on demand.

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Speaker 1: Our recession is the thing in the past. Uh, And no,

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Speaker 1: the answers is that's not the case. And so yeah,

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Speaker 1: some folks started to think that cash was trash and

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Speaker 1: that saving money was stupid. Investing, of course, is where

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Speaker 1: it's at, and so yeah, but we we you and

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Speaker 1: I we like investing. We're not hating on investing. We

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Speaker 1: think it's necessary when it comes to building wealth, but

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Speaker 1: not to the detriment of other prudent personal finance decisions.

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Speaker 1: And so folks now are starting to realize maybe some

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Speaker 1: of the importance of emergency funds or savings, liquid cash.

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Speaker 1: Those are important things, even though it can feel like

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Speaker 1: a dumb decision, especially in the short term when other

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Speaker 1: people are finding ways to make money what looks like

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Speaker 1: hand over fist and you're sitting there with that e

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Speaker 1: fund intact and you're like, why am I not investing this? Well,

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Speaker 1: I think now we're experiencing the reason why people should

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Speaker 1: not be investing that emergency fund. There's a cushion that's

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Speaker 1: necessary for folks to have. Yeah, I mean, this is

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Speaker 1: why we came up with the seven money gears, because

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Speaker 1: there's a formulate process that we want folks to go through,

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Speaker 1: and it's not just about getting that cushion, but there

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Speaker 1: are other important things to do as well. We definitely

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Speaker 1: want folks to take that balanced approach. But yeah, you know,

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Speaker 1: those outside gains that you're talking about, they were not

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Speaker 1: going to last forever. Especially with the low interest rates

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Speaker 1: we saw with the FED intervention like that all helped

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Speaker 1: to speed some of the growth that we've scene, And

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Speaker 1: so it's important to zoom out and to take a

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Speaker 1: broader look at what the stock market typically returns because if, yeah,

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Speaker 1: if you only paid attention to the past twelve or

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Speaker 1: thirteen years, it can be easy to flee yourself into

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Speaker 1: thinking that these outside returns are the new normal. So

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Speaker 1: lately I've been running a good bit more. I'm trying

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Speaker 1: to train for the Peachtree Road Race. That's Atlanta's premier

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Speaker 1: tin k available to anybody who signs up for the

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Speaker 1: most part. But like, it makes me think of track

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Speaker 1: your closest friends. It's so many people. But okay, imagine

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Speaker 1: if you you're training or like during a race, Uh,

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Speaker 1: you're watching your time, You're you know, you're you're tracking

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Speaker 1: your pace. You get to a portion of the race

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Speaker 1: where there's maybe a long sort of easy downhill, you

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Speaker 1: would see your pace just go off the charts, like

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Speaker 1: you would see your your average pace just declined significantly. Uh,

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Speaker 1: and it's gonna look like you're gonna be able to

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Speaker 1: maybe set a personal record, maybe even a pr for

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Speaker 1: your age group, who knows, But it would be foolish

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Speaker 1: to just assume that you would be able to maintain

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Speaker 1: that ace uh once you started to gain elevation again,

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Speaker 1: which gets a heart attack hill, right, isn't that what

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Speaker 1: they call it? Uh? Cardiac cardiac cardiac kill whatever it's like,

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Speaker 1: rather next to the hospital. But the same is true

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Speaker 1: with the market as well. You know, we've had some

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Speaker 1: incredible bursts we've had we've had some periods of some

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Speaker 1: stretches where it just, I mean, the returns were off

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Speaker 1: the charts. And while we do believe that the market

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Speaker 1: will continue to go up over time, you know it

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Speaker 1: always does, that doesn't mean that the pace of that

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Speaker 1: growth will stay the same. Yeah. No, I think that's

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Speaker 1: a really good way of putting it, Matt, Because in

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Speaker 1: that race, yeah, you're feeling good about your pace, but

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Speaker 1: then you hit the tougher sections and you are inevitably

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Speaker 1: going to slow down. So humans just can't run up

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Speaker 1: hill as fast as they can run down. There's some

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Speaker 1: folks who disagree with you, but really, oh yeah, there's

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Speaker 1: there's people who who like to book it up hills.

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Speaker 1: It's tough going fast down hills because I think personally,

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Speaker 1: I think I'm more prone to injury because you're going

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Speaker 1: a little bit fast, a little out of control. Yeah,

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Speaker 1: that's gonna be the best acceleration. It's hard on the

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Speaker 1: knees to write that's true. Well, it actually that reminds me,

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Speaker 1: Matt of a piece that Barry red Holtz wrote recently.

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Speaker 1: He's a financial writer and and he was discussing the

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Speaker 1: fundamental reason that the market has been having a rough

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Speaker 1: go of it lately, and he he uh talked about

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Speaker 1: Occam's razor, which which basically means that the simplest explanation

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Speaker 1: is almost always the correct one. And he was saying

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Speaker 1: that that means that, well, the simplest explanation is just

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Speaker 1: what's called mean reversion. That's at the heart of recent declines.

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Speaker 1: It's the fact that we have experienced these outside gains

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Speaker 1: and of course now we're paying the price as the

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Speaker 1: stock market is retreating. And it's kind of it made

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Speaker 1: me think of like a baseball player who starts off

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Speaker 1: the season first month of the year hit more. Sports

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Speaker 1: were hitting everybody with all the different illustrations we can

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Speaker 1: think of, So baseball player hitting three seventy five, but

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Speaker 1: typically they're hitting to fifty, Right, that's their normal average.

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Speaker 1: That's pretty average, I would say, Actually, I don't know.

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Speaker 1: In modern baseball though, more strikeouts the worst batting averages. Lately,

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Speaker 1: it's really tough for sport to watch these days. Yeah,

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Speaker 1: but but what if it's that your first time that

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Speaker 1: bat and you get to hit your bat in a

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Speaker 1: thousand That's right, that's true. Yeah, but what's what's the

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Speaker 1: likelihood that's gonna last all season? Uh? Not likely unless

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Speaker 1: get like some sort of season ending injury right after

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Speaker 1: that hit, I guess. But yeah, it's a nice start

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Speaker 1: of the season to be hitting close to four hundred.

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Speaker 1: But in reality, you're going to experience mean reversion, especially

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Speaker 1: in those dog days of summer. Even if you have

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Speaker 1: a killer month in May, let's say July and August

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Speaker 1: are gonna come around and your batting average is gonna

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Speaker 1: start to dip. Start feeling that summer heat, let's start

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Speaker 1: sweating a little bit more than you were down there

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Speaker 1: in spring training. Plus, yeah, then you're an othern Colorado

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Speaker 1: where it's nice and cool games into the season and

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Speaker 1: you're probably starting to have some fatigue. There's just no

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Speaker 1: way to continue it for a whole season. And and so, Yeah,

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Speaker 1: that things are coming back down to earth, and the

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Speaker 1: same thing is happening with the market. Right, those exorbitant

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Speaker 1: returns that we've seen over the past you know, decade,

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Speaker 1: they're not the new forever reality. Although I think some

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Speaker 1: people were starting to think that it was. They were

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Speaker 1: at least treating their money as though the stock market

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Speaker 1: was this eminem candy machine that was going to continue

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Speaker 1: to produce until we reached the moon status I guess,

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Speaker 1: or whatever that was gonna be. I don't know. Yeah,

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Speaker 1: and hopefully we're not bumming you out with this more

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Speaker 1: somber conversation. But even though we are injecting you with

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Speaker 1: a dose of realism, we still have plenty of reasons

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Speaker 1: to believe that you should be investing in the stock market. Uh.

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Speaker 1: And we're actually gonna talk some specifically about what you

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Speaker 1: should be doing with this new information, the fact that

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Speaker 1: not only have we entered some periods of volatility, about

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Speaker 1: that there is some talk about the fact that the

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Speaker 1: market may not be what it used to. We'll get

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Speaker 1: to all of that right after this break. Aren't that

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Speaker 1: we're back. We're still talking about the stock market. Is

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Speaker 1: it broken or is this just uh, the reality of

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Speaker 1: how the stock market works. We'll talk about maybe the

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Speaker 1: fundamentals of how the stock market works here in a

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Speaker 1: little bit, and we'll also talk about whether or not

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Speaker 1: folks should be making changes to their portfolio kind of

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Speaker 1: based on what's happening right now and based on some

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Speaker 1: of the predictions, like you talked about those those Fidelity

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Speaker 1: in Vanguard predictions where it's like growth gonna slow a

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Speaker 1: good bit and and your portfolio isn't going to you're

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Speaker 1: not going to see the games that you've been seeing,

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Speaker 1: So then how do you approach that likely near term future.

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Speaker 1: We'll discuss that in just a second. But I wanted

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Speaker 1: to talk about optimism for a second, because you know,

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Speaker 1: I think stock market optimism is a good thing for

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Speaker 1: all of us to have, and I myself am pretty

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Speaker 1: optimistic and just as an individual. But you know, I

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Speaker 1: think it's also possible to take optimism to the extreme. Right.

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Speaker 1: You can you can be so optimistic that you're not

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Speaker 1: actually looking at facts on the ground, you're not living

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Speaker 1: in reality. And so there's a difference between a healthy

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Speaker 1: dose of optimism and being optimistic to a point where

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Speaker 1: you're living in some sort of Mary Poppins Fantasy Mary

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Speaker 1: Poppins returns the original, the original probably the new one's

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Speaker 1: really good and it's good. It's good. The girls can't

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Speaker 1: get enough of that. Abbie has been humming what is

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Speaker 1: the Something music Hall? Yeah, I've only seen it once,

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Speaker 1: so it's been will not stop humming? There. They got

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Speaker 1: distracted when you said, Mary Popps, No, it's all good.

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Speaker 1: But it's adorable when they start dancing with penguins and

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Speaker 1: stuff like that. But but really they're you know, they're

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Speaker 1: they're not in the real world at that point. They're

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Speaker 1: not in reality. That's what we're talking about. And and

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Speaker 1: this is what I think has happened to a lot

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Speaker 1: of investors in the past couple of years, maybe even

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Speaker 1: some how the money listeners. It's, you know, taking what

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Speaker 1: is otherwise one of the greatest ways to build wealth,

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Speaker 1: and and folks have attempted to make money in ways

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Speaker 1: that don't make much sense. Right. That's given rise to

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Speaker 1: n f t s, random crypto coins, and it is

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Speaker 1: reflective of this frothy environment where sanity largely left the building. There.

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Speaker 1: There's a difference i'd say between that reality based optimism

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Speaker 1: that reflects what we're saying are historical realities, and then

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Speaker 1: this overly rosy outlook that has I would say, has

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Speaker 1: an element of greed at the heart of it, where

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Speaker 1: people they're not content with average and what folks want

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Speaker 1: is to make money at a pace that is otherworldly.

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Speaker 1: But like our old pal Warren Buffett says, it's time

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Speaker 1: to get fearful when others are greedy. And we have

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Speaker 1: seen greedy behavior recently, and I think we're kind of

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Speaker 1: on the other side of the hill from some of

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Speaker 1: that greedy behavior. We're seeing maybe some of the demise

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Speaker 1: of some of those more greedy behaviors. Yeah, you know,

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Speaker 1: think it's worth pointing out too. I think one of

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Speaker 1: the reasons we saw some of that greedy behavior, uh

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Speaker 1: is because like think about the amount of money that

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Speaker 1: was injected into our you know, speaking, I keep saying injections.

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Speaker 1: We're talking about injecting realism, talking about injecting stimulus funds.

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Speaker 1: But like we without having a left a finger, got

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Speaker 1: so much money that we weren't necessarily counting on hug

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Speaker 1: decentative Americans. Yes, it showed up in our bank and

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Speaker 1: they couldn't spend exactly, and so what do you do

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Speaker 1: with that I think you tend to make more speculative moves,

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Speaker 1: like you tend to gamble that money with the chance

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Speaker 1: that it might go up, especially as you've you've heard

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Speaker 1: people talk about crypto for a while, Oh what are

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Speaker 1: these new n f T s, And you start taking

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Speaker 1: that money, you start putting it in there, and the

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Speaker 1: two people getting rich quickly, and you're like, I better

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Speaker 1: jump in on that exactly. But like that certainly has

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Speaker 1: been something that has changed. And when others out there

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Speaker 1: were a little more greedy, hopefully we should have been

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Speaker 1: a little more fearful. But like you said, we're we're

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Speaker 1: kind of seeing the tide shifts. We're starting to see

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Speaker 1: it go out that optimism has quickly shifted to pessimism.

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Speaker 1: It's it seems like, speaking of CNBC that they released

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Speaker 1: a survey last month and it showed that only twenty

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Speaker 1: eight or sent of investors think that it's currently a

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Speaker 1: good time to be in stocks right now. People are

428
00:20:04,560 --> 00:20:07,280
Speaker 1: just less enthusiastic about stocks because they aren't doing so

429
00:20:07,320 --> 00:20:10,320
Speaker 1: hot right now. Uh. And the thing is, though the

430
00:20:10,359 --> 00:20:13,080
Speaker 1: market it doesn't care about how you're feeling. For instance,

431
00:20:13,080 --> 00:20:15,639
Speaker 1: the ridiculously short COVID blip like you mentioned, So like

432
00:20:15,720 --> 00:20:18,280
Speaker 1: that's what that taught us, I think, because our our

433
00:20:18,320 --> 00:20:21,880
Speaker 1: collective society was at that point in time reeling from

434
00:20:22,000 --> 00:20:25,720
Speaker 1: pandemic fallout, uncertainty. Yeah, yeah, yeah, there's a lot that

435
00:20:25,760 --> 00:20:29,800
Speaker 1: we didn't know. But simultaneously the market was climbing rapidly. Uh.

436
00:20:29,840 --> 00:20:32,879
Speaker 1: And so the current pessimistic mood, it often means that

437
00:20:33,080 --> 00:20:36,440
Speaker 1: long term investors like ourselves, I think, should become even

438
00:20:36,640 --> 00:20:40,560
Speaker 1: more optimistic, taking advantage of stock declines so that our

439
00:20:40,600 --> 00:20:43,439
Speaker 1: investment dollars go even further. Because the flip side of

440
00:20:43,480 --> 00:20:45,560
Speaker 1: that war Buffet quote I gave Matt, he says to

441
00:20:45,600 --> 00:20:47,639
Speaker 1: get fearful when others are greedy. Well, we'll be greedy

442
00:20:47,680 --> 00:20:49,800
Speaker 1: when others are fearful. And so now that the tide

443
00:20:49,960 --> 00:20:54,439
Speaker 1: is shifting, stocks are down, who is out there buying

444
00:20:54,600 --> 00:20:57,640
Speaker 1: more stocks? It's warm, Buffet is and I think it's

445
00:20:57,720 --> 00:21:00,639
Speaker 1: a sign that we should be too. When more people

446
00:21:00,680 --> 00:21:05,000
Speaker 1: are pessimistic rather than optimistic, and the consumer sentiment has

447
00:21:05,040 --> 00:21:07,400
Speaker 1: essentially shifted in terms of how they view the stock market,

448
00:21:07,640 --> 00:21:10,040
Speaker 1: it's time for us to maybe take the opposite approach,

449
00:21:10,280 --> 00:21:12,680
Speaker 1: putting more of our money to work. And it's also

450
00:21:12,800 --> 00:21:15,320
Speaker 1: important to point out that the economy is not the

451
00:21:15,320 --> 00:21:18,040
Speaker 1: stock market. There's a lot of talk about the risk

452
00:21:18,160 --> 00:21:20,600
Speaker 1: of the Fed, you know, tipping the economy into a

453
00:21:20,640 --> 00:21:24,080
Speaker 1: recession due to the need to raise interest rates because

454
00:21:24,320 --> 00:21:28,160
Speaker 1: of inflation. Inflation is obviously running hot and the FED

455
00:21:28,240 --> 00:21:30,359
Speaker 1: is trying to get that under control. We talked about

456
00:21:30,359 --> 00:21:32,359
Speaker 1: this actually in episode five oh three when we were

457
00:21:32,359 --> 00:21:36,840
Speaker 1: talking about preparing for a looming recession. Looming recession. That's right,

458
00:21:36,880 --> 00:21:40,359
Speaker 1: that's right if you recall and a recession is defined

459
00:21:40,359 --> 00:21:45,040
Speaker 1: as two consecutive quarters of GDP decline. But the fact

460
00:21:45,440 --> 00:21:48,720
Speaker 1: is that the stock market, it doesn't necessarily decline during

461
00:21:48,720 --> 00:21:51,359
Speaker 1: a recession. If you look at the past seventy years,

462
00:21:51,440 --> 00:21:56,560
Speaker 1: the average return during a recession was negative one And

463
00:21:56,680 --> 00:21:58,960
Speaker 1: you might say, ah, so the market does go down

464
00:21:59,680 --> 00:22:03,320
Speaker 1: full is You're wrong, But it's interesting in reality, the

465
00:22:03,359 --> 00:22:06,240
Speaker 1: returns are even worse in the lead up to a recession.

466
00:22:06,520 --> 00:22:09,520
Speaker 1: So on average, the stock market returned negative two percent

467
00:22:09,640 --> 00:22:13,280
Speaker 1: six months prior to a recession and negative three a

468
00:22:13,359 --> 00:22:16,080
Speaker 1: year twelve months prior to a recession. And so yeah,

469
00:22:16,119 --> 00:22:19,119
Speaker 1: if you want to guess stock market returns after the

470
00:22:19,160 --> 00:22:24,400
Speaker 1: recession begins seven to between six and twelve months are

471
00:22:24,560 --> 00:22:27,399
Speaker 1: the return so in the in the extreme positive range

472
00:22:27,720 --> 00:22:30,879
Speaker 1: after the startup recession. It's it's amazing how the market

473
00:22:30,960 --> 00:22:34,480
Speaker 1: is almost like forecasting the where the economy is going

474
00:22:34,520 --> 00:22:37,399
Speaker 1: to eventually end up. They're not always going in lockstep together,

475
00:22:37,600 --> 00:22:40,960
Speaker 1: which only reinforces the fact that it's difficult, incredibly difficult

476
00:22:40,960 --> 00:22:43,159
Speaker 1: to time the market and to figure out when is

477
00:22:43,160 --> 00:22:46,199
Speaker 1: the actual bottom as the market is looking ahead. But

478
00:22:46,240 --> 00:22:48,920
Speaker 1: this only reinforces that warm buffet quote right, often when

479
00:22:48,920 --> 00:22:51,360
Speaker 1: things look bad, that is the best time to invest,

480
00:22:51,920 --> 00:22:55,560
Speaker 1: which obviously, again it seems counterintuitive, and we mentioned that

481
00:22:55,640 --> 00:22:58,760
Speaker 1: the historical reality of the stock market just a second ago,

482
00:22:58,960 --> 00:23:02,240
Speaker 1: So let's talk about that. For the earnings of publicly

483
00:23:02,240 --> 00:23:05,600
Speaker 1: traded companies as a whole continue to go up over time,

484
00:23:06,000 --> 00:23:08,719
Speaker 1: not every company progresses at the same pace um, and

485
00:23:08,800 --> 00:23:11,960
Speaker 1: some companies are are actually declining while others are booming.

486
00:23:12,200 --> 00:23:16,000
Speaker 1: But overall, if you own a diversified basket of companies,

487
00:23:16,480 --> 00:23:18,560
Speaker 1: say for instance, in a Total Stock Market Index fund

488
00:23:18,640 --> 00:23:20,440
Speaker 1: or the smp F I funder, you're going to see

489
00:23:20,440 --> 00:23:24,280
Speaker 1: your money grow over time. Because the average return of

490
00:23:24,320 --> 00:23:28,040
Speaker 1: the market since has been nine eight percent a year.

491
00:23:28,400 --> 00:23:32,040
Speaker 1: And so this this beautifully creative and simultaneously destructive machine

492
00:23:32,400 --> 00:23:36,720
Speaker 1: of capitalism. It just continues. It's march again upboards and onwards,

493
00:23:37,200 --> 00:23:41,200
Speaker 1: even when world events are scary and when consumer confidence

494
00:23:41,240 --> 00:23:43,280
Speaker 1: is low, which it is right now. Yeah, Matt, what

495
00:23:43,400 --> 00:23:46,920
Speaker 1: what you're talking about here? These returns, these historic returns,

496
00:23:46,920 --> 00:23:51,440
Speaker 1: are based on the underlying reality that of capitalism. And

497
00:23:52,000 --> 00:23:55,479
Speaker 1: it's as these companies, these individual companies are participating in

498
00:23:55,480 --> 00:23:58,960
Speaker 1: this overall system that we have. They are benefiting all

499
00:23:59,040 --> 00:24:01,560
Speaker 1: of us as they create new items, as new technology

500
00:24:01,600 --> 00:24:04,840
Speaker 1: comes out, drives prices down and it drives innovation up.

501
00:24:05,200 --> 00:24:08,040
Speaker 1: And in episode four seventy nine, we discussed why we

502
00:24:08,040 --> 00:24:11,600
Speaker 1: feel like capitalism is ultimately a force for good. And

503
00:24:11,720 --> 00:24:14,000
Speaker 1: if you'd access the question is it is it only

504
00:24:14,040 --> 00:24:16,119
Speaker 1: a good thing? We would say no, free markets that

505
00:24:16,160 --> 00:24:18,320
Speaker 1: they don't fix everything. There are other problems in our

506
00:24:18,359 --> 00:24:21,480
Speaker 1: society that need to be remedied other ways. But ultimately

507
00:24:21,560 --> 00:24:24,320
Speaker 1: it's the best economic system that we've got and it's

508
00:24:24,359 --> 00:24:26,720
Speaker 1: increased living standards and it's brought more folks out of

509
00:24:26,720 --> 00:24:29,880
Speaker 1: poverty than anything else humans have tried. And so, yeah,

510
00:24:29,920 --> 00:24:33,440
Speaker 1: businesses that we invest in, they're working to create value

511
00:24:33,760 --> 00:24:36,280
Speaker 1: in our society. And if they find a customer base

512
00:24:36,320 --> 00:24:39,640
Speaker 1: and they succeed. Profit is the end results, and as

513
00:24:39,680 --> 00:24:42,199
Speaker 1: investors in the stock market, we get to participate in

514
00:24:42,240 --> 00:24:44,040
Speaker 1: some of those profits, which I think is the coolest

515
00:24:44,040 --> 00:24:46,480
Speaker 1: thing ever. It kind of almost doesn't seem fair Matt,

516
00:24:46,760 --> 00:24:49,879
Speaker 1: that we can kick back and passively invest. It almost

517
00:24:49,880 --> 00:24:51,840
Speaker 1: doesn't use almost none of our brain energy, just use

518
00:24:51,880 --> 00:24:54,439
Speaker 1: our dollars and still see something. I get ten percent

519
00:24:54,480 --> 00:24:58,120
Speaker 1: return over the past hundred years. But really, for the

520
00:24:58,240 --> 00:25:02,479
Speaker 1: average index investor, for the lazy, boring investor route like

521
00:25:02,520 --> 00:25:04,960
Speaker 1: we are, like we want people to take, it's quite

522
00:25:04,960 --> 00:25:07,400
Speaker 1: simple and history points to the fact that it's it's

523
00:25:07,480 --> 00:25:09,800
Speaker 1: quite effective in helping us build wealth. Yeah, it's really

524
00:25:09,800 --> 00:25:13,359
Speaker 1: interesting too, is to consider how the market, how it

525
00:25:13,400 --> 00:25:16,240
Speaker 1: self regulates, right, because if you take that, imagine the

526
00:25:16,280 --> 00:25:18,960
Speaker 1: situation like a worst case scenario where you've got everybody

527
00:25:18,960 --> 00:25:21,320
Speaker 1: has become a passive investor and nobody is innovating. Well,

528
00:25:21,359 --> 00:25:23,679
Speaker 1: what's going to happen to the stock market returns? You

529
00:25:23,680 --> 00:25:26,240
Speaker 1: could argue you could foresee a world where you could

530
00:25:26,240 --> 00:25:29,040
Speaker 1: see those returns decline, right, because if fewer people are

531
00:25:29,040 --> 00:25:31,000
Speaker 1: out there taking risks, because everybody wants to play it

532
00:25:31,080 --> 00:25:34,040
Speaker 1: safe and invest in the entire stock market. There is

533
00:25:34,040 --> 00:25:36,600
Speaker 1: technically less value being brought into the world, which means

534
00:25:36,720 --> 00:25:39,440
Speaker 1: lower returns, but it's self regulating in this way because

535
00:25:39,480 --> 00:25:41,480
Speaker 1: there are going to be individuals who say, well, I

536
00:25:41,480 --> 00:25:43,639
Speaker 1: want to see a higher return, and so they are

537
00:25:43,680 --> 00:25:46,840
Speaker 1: then willing to risk their dollars in ways that ultimately

538
00:25:46,920 --> 00:25:49,520
Speaker 1: need to provide more value and more benefits to the

539
00:25:49,520 --> 00:25:52,400
Speaker 1: world in order for them to receive the benefit from

540
00:25:52,480 --> 00:25:55,920
Speaker 1: that direct investment. And of course people who invest within

541
00:25:55,960 --> 00:25:58,280
Speaker 1: that company, you know, within those individuals as well, we'll

542
00:25:58,280 --> 00:26:00,920
Speaker 1: see these higher returns I mentioned because you could foresee

543
00:26:00,920 --> 00:26:03,680
Speaker 1: a world where it's just like, well, if everybody becomes

544
00:26:03,720 --> 00:26:06,719
Speaker 1: passive total stock market investors, well maybe we are going

545
00:26:06,720 --> 00:26:08,639
Speaker 1: to see declines in the market. But ultimately I almost

546
00:26:08,640 --> 00:26:10,879
Speaker 1: see it as like this automatic leveling system that's just

547
00:26:10,960 --> 00:26:13,760
Speaker 1: inherently built into the market. But there will always be

548
00:26:13,760 --> 00:26:16,119
Speaker 1: people who think that they're smarter and who want bigger,

549
00:26:16,160 --> 00:26:18,359
Speaker 1: better returns, or just want to do something different, you know,

550
00:26:18,440 --> 00:26:20,560
Speaker 1: like like there will be individuals who want that autonomy

551
00:26:20,560 --> 00:26:22,760
Speaker 1: and don't want to sit back because they've got something

552
00:26:22,800 --> 00:26:24,880
Speaker 1: to create. They have something that they want to introduce

553
00:26:24,920 --> 00:26:26,800
Speaker 1: into the world. They want to make their mark, and

554
00:26:26,840 --> 00:26:29,560
Speaker 1: so I think there will always be opportunity for us

555
00:26:29,880 --> 00:26:33,000
Speaker 1: kick back style passive investors because of those other folks

556
00:26:33,040 --> 00:26:34,800
Speaker 1: on on the other side of the spectrum. Exactly. It's

557
00:26:34,800 --> 00:26:36,600
Speaker 1: it's super cool when you think about it that way,

558
00:26:36,840 --> 00:26:39,760
Speaker 1: but there will be carnage along the way of the

559
00:26:39,800 --> 00:26:42,480
Speaker 1: stock market growth. You don't get the reward without the risk.

560
00:26:42,920 --> 00:26:45,119
Speaker 1: You're not going to see that average tim percent return

561
00:26:45,200 --> 00:26:48,000
Speaker 1: without some subpar years. Uh, it comes with the territory.

562
00:26:48,240 --> 00:26:51,639
Speaker 1: But overall, the economy will continue to grow and corporations

563
00:26:51,680 --> 00:26:55,000
Speaker 1: that you can invest in will continue to earn more money.

564
00:26:55,359 --> 00:26:58,040
Speaker 1: And again, some companies they're gonna stick around for decades,

565
00:26:58,280 --> 00:27:00,720
Speaker 1: creating loads of profit for investor is, but others won't

566
00:27:00,720 --> 00:27:03,360
Speaker 1: stick around for for long or do anything terribly noteworthy.

567
00:27:03,480 --> 00:27:06,240
Speaker 1: And that is one of the coolest aspects of capitalism

568
00:27:06,359 --> 00:27:10,399
Speaker 1: is that it automatically self cleanses. The market decides what

569
00:27:10,520 --> 00:27:12,520
Speaker 1: companies are going to stick around and which one's get

570
00:27:12,520 --> 00:27:16,000
Speaker 1: the boot. But again, the general trajectory is up into

571
00:27:16,040 --> 00:27:18,679
Speaker 1: the right. It's it's healthy to remind ourselves that the

572
00:27:18,840 --> 00:27:21,919
Speaker 1: entire value of the U stock market, the entire market,

573
00:27:21,960 --> 00:27:26,360
Speaker 1: was one point to trillion dollars back in Apple alone

574
00:27:26,680 --> 00:27:28,479
Speaker 1: is worth significantly more than that. Right now, I think

575
00:27:28,480 --> 00:27:31,240
Speaker 1: it's double that. And so we've got enough historical data

576
00:27:31,240 --> 00:27:33,920
Speaker 1: in our corner to point to the reality that despite

577
00:27:34,119 --> 00:27:38,040
Speaker 1: these immediate market setbacks that we're experiencing, progress will continue

578
00:27:38,320 --> 00:27:41,119
Speaker 1: and we can all benefit from that progress. This is

579
00:27:41,119 --> 00:27:44,240
Speaker 1: why we're optimistic. It's not because we have some sort

580
00:27:44,240 --> 00:27:46,520
Speaker 1: of pie in the sky reason to think that things

581
00:27:46,520 --> 00:27:48,800
Speaker 1: will always get better. We can look back at history.

582
00:27:49,000 --> 00:27:51,159
Speaker 1: History informs the future. It is not guaranteed, but we

583
00:27:51,200 --> 00:27:53,320
Speaker 1: can be encouraged by that fact. Yeah, it's not some

584
00:27:53,359 --> 00:27:57,159
Speaker 1: sort of Pollyanna, no hoping and wishing, or it's not

585
00:27:57,240 --> 00:27:59,639
Speaker 1: like in Ostrich putting our head in the sand, just

586
00:27:59,720 --> 00:28:03,480
Speaker 1: kind of against all odds, wanting something to be the case.

587
00:28:03,600 --> 00:28:06,880
Speaker 1: It is truly the historical reality. We have precedent really

588
00:28:06,880 --> 00:28:09,760
Speaker 1: that we can look to telling us what the stock

589
00:28:09,800 --> 00:28:12,160
Speaker 1: market is likely to do in the years ahead, and

590
00:28:12,320 --> 00:28:16,640
Speaker 1: despite massive shifts to the way our country functions, will

591
00:28:16,640 --> 00:28:20,280
Speaker 1: continue to be the greatest wealth building machine moving forward.

592
00:28:20,720 --> 00:28:23,160
Speaker 1: But if you want it to be that in your life,

593
00:28:23,200 --> 00:28:24,399
Speaker 1: if if you want to be able to use the

594
00:28:24,440 --> 00:28:27,640
Speaker 1: stock market to your advantage, well there are some things

595
00:28:27,680 --> 00:28:29,800
Speaker 1: you're gonna need to realize and and one of those

596
00:28:29,840 --> 00:28:32,879
Speaker 1: things might be making some changes to the way that

597
00:28:32,960 --> 00:28:35,800
Speaker 1: you're investing. And so we'll talk about whether the current

598
00:28:35,800 --> 00:28:40,000
Speaker 1: market reality and you know, future lower return predictions should

599
00:28:40,040 --> 00:28:42,920
Speaker 1: actually cause you to do anything different with your portfolio.

600
00:28:43,000 --> 00:28:45,200
Speaker 1: In the here and now. We'll get to some of

601
00:28:45,200 --> 00:28:56,520
Speaker 1: our thoughts on that right after this. Alright, we're back

602
00:28:56,520 --> 00:28:59,080
Speaker 1: to the break talking about investing in the market. And

603
00:28:59,120 --> 00:29:02,480
Speaker 1: I still have that song stuck in my head. Uh

604
00:29:02,560 --> 00:29:06,480
Speaker 1: do you'm are you? I'm not a fan of that. Yeah,

605
00:29:06,480 --> 00:29:08,600
Speaker 1: I guess we just haven't I don't know, watched it again. Then, well,

606
00:29:08,720 --> 00:29:10,920
Speaker 1: maybe we should only cranks out the hits. If you

607
00:29:10,960 --> 00:29:14,400
Speaker 1: can invest in a person, invest in him, I think.

608
00:29:14,440 --> 00:29:16,400
Speaker 1: I think you're right, him and Tom Brady. Maybe maybe

609
00:29:16,440 --> 00:29:18,080
Speaker 1: they're both at the top of their game and there's

610
00:29:18,120 --> 00:29:19,920
Speaker 1: only you can only go down from here. I think so.

611
00:29:20,000 --> 00:29:22,840
Speaker 1: I mean, lin Manuel is one of those prolific individuals

612
00:29:22,960 --> 00:29:25,040
Speaker 1: who everything he creates seems to turn to gold. It's

613
00:29:25,080 --> 00:29:28,120
Speaker 1: got that Midas touch. Hamilton's obviously, in conto another one.

614
00:29:28,120 --> 00:29:30,440
Speaker 1: I mean, just really, if you get him involved in

615
00:29:30,480 --> 00:29:33,600
Speaker 1: a project, it's gonna be great. Okay. I feel like

616
00:29:33,600 --> 00:29:36,240
Speaker 1: we're going off track again, but we're talking about investing,

617
00:29:36,320 --> 00:29:38,480
Speaker 1: and we've talked through some of these some of these

618
00:29:38,520 --> 00:29:40,880
Speaker 1: trends that we're seeing here in the near term. We're

619
00:29:40,880 --> 00:29:43,880
Speaker 1: talking about the overall larger trend of the stock market,

620
00:29:43,960 --> 00:29:46,760
Speaker 1: which you should expect. But there are a few things

621
00:29:46,760 --> 00:29:48,640
Speaker 1: that you can do differently with the information that we've

622
00:29:48,680 --> 00:29:51,280
Speaker 1: talked about so far, and with the predictions that we

623
00:29:51,280 --> 00:29:53,200
Speaker 1: we truly may not see the kind of returns that

624
00:29:53,240 --> 00:29:55,560
Speaker 1: we've seen over the past twelve thirteen years. There are

625
00:29:55,560 --> 00:29:57,760
Speaker 1: a few things that you can do differently with this information,

626
00:29:57,800 --> 00:30:00,280
Speaker 1: the fact that returns may not be what they once

627
00:30:00,320 --> 00:30:02,200
Speaker 1: we're and so for starters, one of these things that

628
00:30:02,240 --> 00:30:05,400
Speaker 1: you can do is start salking away more money. If

629
00:30:05,640 --> 00:30:08,120
Speaker 1: returns are likely to be lower, you might need to

630
00:30:08,160 --> 00:30:10,840
Speaker 1: invest more of your paycheck in order to reach some

631
00:30:10,920 --> 00:30:14,160
Speaker 1: of your financial goals. If that's something that is financially

632
00:30:14,240 --> 00:30:17,280
Speaker 1: possible for you, ramping out the percentage that you are

633
00:30:17,320 --> 00:30:19,920
Speaker 1: stalking away is a solid move. We're not necessarily talking

634
00:30:19,960 --> 00:30:23,400
Speaker 1: about taking extreme measures extreme steps here, but just to

635
00:30:23,520 --> 00:30:26,080
Speaker 1: keep doing what you what you've been doing, but maybe

636
00:30:26,160 --> 00:30:27,920
Speaker 1: just ratching it up a little bit. You might want

637
00:30:27,920 --> 00:30:30,040
Speaker 1: to increase that amount that you are investing, put your

638
00:30:30,040 --> 00:30:32,960
Speaker 1: foot on the pedal just a little bit harder, and

639
00:30:33,040 --> 00:30:35,720
Speaker 1: add a couple extra percentage points maybe to what you're

640
00:30:35,720 --> 00:30:39,040
Speaker 1: putting into your four one K. Investing more in light

641
00:30:39,160 --> 00:30:43,680
Speaker 1: of potentially inferior returns moving forward is one great way

642
00:30:43,720 --> 00:30:46,720
Speaker 1: to kind of counterbalance things and to make sure that

643
00:30:46,760 --> 00:30:49,120
Speaker 1: you're gonna hit those financial goals that you've got for yourself.

644
00:30:49,200 --> 00:30:51,120
Speaker 1: And hear what we're saying here, This is just a

645
00:30:51,200 --> 00:30:54,280
Speaker 1: slight change to the behavior that you're already doing. You're

646
00:30:54,280 --> 00:30:56,960
Speaker 1: already going in the right direction. Just maybe just juice

647
00:30:56,960 --> 00:30:58,520
Speaker 1: it just a little bit more. We're not telling you

648
00:30:58,560 --> 00:31:01,240
Speaker 1: to pull the e break, you know. We're not telling

649
00:31:01,280 --> 00:31:03,959
Speaker 1: you just throw it in reverse and totally wreck your vehicle.

650
00:31:04,200 --> 00:31:06,040
Speaker 1: We're not telling you to start serving or we're not

651
00:31:06,080 --> 00:31:09,000
Speaker 1: telling you that at the last second exit off the highway,

652
00:31:09,160 --> 00:31:11,840
Speaker 1: cutting a bunch of people off and potentially reckon yourself.

653
00:31:11,840 --> 00:31:14,000
Speaker 1: That is not what we want you to do your portfolio.

654
00:31:14,040 --> 00:31:15,280
Speaker 1: And we don't even need you to like pedal to

655
00:31:15,320 --> 00:31:17,320
Speaker 1: the metal right like you can. You don't have to

656
00:31:17,400 --> 00:31:20,600
Speaker 1: go from saving eight percent of your paycheck to saving

657
00:31:21,480 --> 00:31:24,240
Speaker 1: right that's just not necessary. But in light of those

658
00:31:24,560 --> 00:31:28,840
Speaker 1: future inferior returns, then stacking more money away does make

659
00:31:28,880 --> 00:31:31,360
Speaker 1: more sense. And another another course of action that you

660
00:31:31,400 --> 00:31:36,000
Speaker 1: could take is to take more risks with your investments. Right,

661
00:31:36,240 --> 00:31:38,560
Speaker 1: this is something that that needs to be discussed mat

662
00:31:38,600 --> 00:31:41,400
Speaker 1: but really it's best done on a case by case scenario.

663
00:31:41,480 --> 00:31:43,640
Speaker 1: It's hard for us to tell everyone that they should

664
00:31:43,640 --> 00:31:47,240
Speaker 1: be adding more risk to their portfolio because we've got

665
00:31:47,240 --> 00:31:49,840
Speaker 1: listeners of all ages and stages, people who are in

666
00:31:49,840 --> 00:31:51,560
Speaker 1: the wealth building phase of their life to people who

667
00:31:51,640 --> 00:31:53,800
Speaker 1: are in the wealth preservation stage of their life, and

668
00:31:53,800 --> 00:31:56,200
Speaker 1: and there's a different tact that needs to be taken

669
00:31:56,640 --> 00:31:59,240
Speaker 1: for each of those individuals depending on where they are.

670
00:31:59,640 --> 00:32:02,360
Speaker 1: And I think for some people accepting more risks it

671
00:32:02,400 --> 00:32:04,640
Speaker 1: makes sense if there if they are still in the

672
00:32:04,640 --> 00:32:07,040
Speaker 1: wealth building phase of life, and you know, the short

673
00:32:07,120 --> 00:32:09,920
Speaker 1: term bouts of turbulence aren't going to significantly impact them,

674
00:32:10,080 --> 00:32:12,920
Speaker 1: and so it's actually gonna help boost their returns if

675
00:32:12,960 --> 00:32:16,720
Speaker 1: their dollar cost averaging by investing in a slightly more

676
00:32:16,880 --> 00:32:19,440
Speaker 1: risky way. And what I mean by that is mostly

677
00:32:19,440 --> 00:32:22,960
Speaker 1: that if you're if you have an insufficient allocation of

678
00:32:23,040 --> 00:32:26,320
Speaker 1: your investment portfolio towards stocks, so ramping that up and

679
00:32:26,320 --> 00:32:29,600
Speaker 1: having more exposure to the stock market in the future

680
00:32:29,840 --> 00:32:33,560
Speaker 1: could and should over the years, actually help boost your returns.

681
00:32:33,560 --> 00:32:36,320
Speaker 1: But but then for others, taking on more risk could

682
00:32:36,560 --> 00:32:39,320
Speaker 1: impact their ability to retire, Matt, It can have a

683
00:32:39,400 --> 00:32:42,840
Speaker 1: significantly negative impact if you have too much stock market

684
00:32:42,840 --> 00:32:44,880
Speaker 1: exposure and you need those funds in the new term,

685
00:32:44,960 --> 00:32:46,960
Speaker 1: if you have to start drawing on those funds because

686
00:32:47,120 --> 00:32:49,280
Speaker 1: you're quitting work. So for instance, like my parents, they're

687
00:32:49,320 --> 00:32:52,360
Speaker 1: supposed to be quitting work altogether in the next within

688
00:32:52,400 --> 00:32:54,840
Speaker 1: the next nine months, and there's no way I would

689
00:32:54,840 --> 00:32:57,040
Speaker 1: tell them that they should have more stock market exposure

690
00:32:57,040 --> 00:32:59,760
Speaker 1: at this point in in their life. And so, yeah,

691
00:32:59,800 --> 00:33:02,520
Speaker 1: you have to kind of take your own specific situation

692
00:33:02,640 --> 00:33:06,080
Speaker 1: into account. More risk is helpful for some but harmful

693
00:33:06,120 --> 00:33:08,600
Speaker 1: for others. Yeah, that is a healthy way to expose

694
00:33:08,640 --> 00:33:11,240
Speaker 1: yourself to more risk, because if you're if you're in

695
00:33:11,280 --> 00:33:13,280
Speaker 1: your twenties, you don't need to be in a sixty

696
00:33:13,360 --> 00:33:17,520
Speaker 1: forty portfolio where where you've got bonds, Uh, you should

697
00:33:17,560 --> 00:33:22,000
Speaker 1: probably be in stocks. I'm nearly forty and I in stocks.

698
00:33:22,000 --> 00:33:24,600
Speaker 1: But that can be a healthy approach to adding more

699
00:33:24,680 --> 00:33:27,520
Speaker 1: risk to your portfolio. But you can also you could

700
00:33:27,800 --> 00:33:30,040
Speaker 1: veer off the highway and take this, you know, into

701
00:33:30,240 --> 00:33:32,640
Speaker 1: into the danger zone. Some folks in search of high

702
00:33:32,720 --> 00:33:36,440
Speaker 1: returns have opted for even riskier asset classes like crypto,

703
00:33:36,520 --> 00:33:39,800
Speaker 1: which is still a highly unproven and very speculative place

704
00:33:39,960 --> 00:33:42,360
Speaker 1: to put your money. Some folks have seen their wealth

705
00:33:42,400 --> 00:33:45,680
Speaker 1: cut in half or or even more with no real

706
00:33:45,760 --> 00:33:48,320
Speaker 1: historical assurance that there is going to be a significant

707
00:33:48,360 --> 00:33:51,560
Speaker 1: bounce back by any means. Uh. And you know, can

708
00:33:51,640 --> 00:33:53,360
Speaker 1: you gotta ask yourself, can you stomach that sort of

709
00:33:53,440 --> 00:33:57,080
Speaker 1: draw down? Because knowing your specific timeline, knowing your talents

710
00:33:57,080 --> 00:33:58,880
Speaker 1: for risk is this is all going to be crucial

711
00:33:58,920 --> 00:34:01,600
Speaker 1: information before we start amping up your risk level. And

712
00:34:01,680 --> 00:34:03,720
Speaker 1: for a lot of folks, the best course of action

713
00:34:03,880 --> 00:34:05,640
Speaker 1: is to keep doing whatever it is that you're doing

714
00:34:05,720 --> 00:34:09,120
Speaker 1: right now, even in the midst of subpar market predictions.

715
00:34:09,200 --> 00:34:11,200
Speaker 1: We would not recommend for you to gamble in order

716
00:34:11,239 --> 00:34:14,239
Speaker 1: to increase your return. Just stay the course. Yeah, Matt,

717
00:34:14,280 --> 00:34:16,880
Speaker 1: there is a certain window in which taking on more

718
00:34:16,960 --> 00:34:19,040
Speaker 1: risk might make sense for people. But then there is

719
00:34:19,480 --> 00:34:21,080
Speaker 1: the ability you can turn the risk style up to

720
00:34:21,160 --> 00:34:24,080
Speaker 1: like nine thousand, and that is what putting let's say

721
00:34:24,120 --> 00:34:27,160
Speaker 1: everything in toward into different crypto coins would be and

722
00:34:27,160 --> 00:34:29,839
Speaker 1: and some folks have taken that approach and it has

723
00:34:30,080 --> 00:34:32,759
Speaker 1: hit him right where it hurts lately, because, yeah, the

724
00:34:32,760 --> 00:34:35,239
Speaker 1: crypto market has been not so great. And no matter

725
00:34:35,239 --> 00:34:37,200
Speaker 1: what Matt, there are a few things that people should

726
00:34:37,360 --> 00:34:41,080
Speaker 1: always pay attention to, whether we're experiencing a bowl or

727
00:34:41,120 --> 00:34:43,000
Speaker 1: a bear market. And if you pay attention to these

728
00:34:43,400 --> 00:34:46,240
Speaker 1: few things in particular, I think people are are likely

729
00:34:46,680 --> 00:34:49,120
Speaker 1: to have a good wealth building experience over the years.

730
00:34:49,160 --> 00:34:51,560
Speaker 1: And it doesn't mean they won't be immune from downturns

731
00:34:51,600 --> 00:34:54,239
Speaker 1: or portfolio losses, but it will mean they'll be able

732
00:34:54,280 --> 00:34:56,719
Speaker 1: to stay the course and they'll be able to experience

733
00:34:56,840 --> 00:35:01,480
Speaker 1: the wealth generating abilities of the overall style market over

734
00:35:01,520 --> 00:35:04,640
Speaker 1: the years over the decades. And so let's talk about

735
00:35:04,640 --> 00:35:07,319
Speaker 1: a few of those things. One is choosing the right

736
00:35:07,360 --> 00:35:11,760
Speaker 1: funds to invest in and specifically opting for diversification, because

737
00:35:12,239 --> 00:35:16,080
Speaker 1: I will say having a diversified portfolio has felt pretty

738
00:35:16,080 --> 00:35:19,560
Speaker 1: boring over the past few years. In particular, Uh, there

739
00:35:19,560 --> 00:35:21,800
Speaker 1: have been a lot of people chatting about Cathy Wood

740
00:35:21,840 --> 00:35:24,239
Speaker 1: and her ARC fund a r k K, which is

741
00:35:24,440 --> 00:35:27,120
Speaker 1: the innovation fund killed it during the pandemic. Yeah, I

742
00:35:27,120 --> 00:35:29,080
Speaker 1: mean like to see some of the returns. She was

743
00:35:29,120 --> 00:35:32,200
Speaker 1: experiencing the exploding growth of some of the companies that

744
00:35:32,280 --> 00:35:34,720
Speaker 1: she was betting on. It drew a lot of eyeballs,

745
00:35:34,719 --> 00:35:36,640
Speaker 1: that drew a lot of media attention, and it drew

746
00:35:36,719 --> 00:35:40,359
Speaker 1: a lot of investor dollars. People were excited, they wanted

747
00:35:40,400 --> 00:35:43,239
Speaker 1: to participate, they wanted to be a part of the

748
00:35:43,320 --> 00:35:47,439
Speaker 1: next big investment fund. And so yeah, it's it's drawn

749
00:35:47,560 --> 00:35:50,720
Speaker 1: actually some similar interest as the fund has been plumbing

750
00:35:50,880 --> 00:35:53,600
Speaker 1: recently too. And it can just be tough though for

751
00:35:53,640 --> 00:35:56,200
Speaker 1: people to watch while other people out there in the

752
00:35:56,239 --> 00:36:01,040
Speaker 1: investing space are making a killing when you're just humming

753
00:36:01,120 --> 00:36:08,359
Speaker 1: along getting basic average SMP level returns. And so yeah, diversification, though,

754
00:36:08,560 --> 00:36:10,440
Speaker 1: it can be boring on the way up, but it's

755
00:36:10,440 --> 00:36:12,200
Speaker 1: a lifesaver on the way down, because when you look

756
00:36:12,239 --> 00:36:15,360
Speaker 1: at what's happened with that Arc Innovation Fund just in

757
00:36:15,400 --> 00:36:16,880
Speaker 1: the last six months, and when you look at what's

758
00:36:16,880 --> 00:36:19,000
Speaker 1: happening to the overall stock market, you know what, it's

759
00:36:19,000 --> 00:36:21,239
Speaker 1: a whole lot easier to stomach what's been happening in

760
00:36:21,280 --> 00:36:23,960
Speaker 1: the overall stock market than it is in just a

761
00:36:24,040 --> 00:36:27,200
Speaker 1: handful of those high flying stocks. Anybody who decided to

762
00:36:27,239 --> 00:36:30,080
Speaker 1: invest most of their retirement in that arc fund is

763
00:36:30,239 --> 00:36:33,399
Speaker 1: understandably freaking out right now because the roller coaster ride

764
00:36:33,400 --> 00:36:35,400
Speaker 1: they've been on and right now they are not sitting

765
00:36:35,440 --> 00:36:37,920
Speaker 1: in a good place. And I would be frightened if

766
00:36:37,960 --> 00:36:39,600
Speaker 1: I if I had my money there. And so I

767
00:36:39,600 --> 00:36:42,239
Speaker 1: think that diversification point is is crucial. Finding a fund

768
00:36:42,280 --> 00:36:45,480
Speaker 1: that's that's highly diversified, that gives you a wide exposure

769
00:36:45,520 --> 00:36:48,040
Speaker 1: to the overall stock market is is important so that

770
00:36:48,080 --> 00:36:50,279
Speaker 1: you're not putting all your eggs in one basket or

771
00:36:50,320 --> 00:36:52,520
Speaker 1: just a few baskets. That's right. Yeah, So regardless of

772
00:36:52,520 --> 00:36:55,680
Speaker 1: what the market is doing, pay attention to the choice

773
00:36:55,719 --> 00:36:57,680
Speaker 1: of funds that you're putting your money in. UH And

774
00:36:57,760 --> 00:37:00,000
Speaker 1: a part of that's a part of that fund choice

775
00:37:00,040 --> 00:37:03,960
Speaker 1: is paying attention to the all important expense ratio as well.

776
00:37:04,000 --> 00:37:05,360
Speaker 1: We we don't want you to pay more when you

777
00:37:05,360 --> 00:37:08,719
Speaker 1: don't need to, because these fees will eat into your returns,

778
00:37:08,840 --> 00:37:12,120
Speaker 1: especially the longer you plan to continue investing those dollars.

779
00:37:12,440 --> 00:37:14,960
Speaker 1: You want to make sure that you are kneecapping yourself

780
00:37:15,200 --> 00:37:19,000
Speaker 1: and experiencing poor returns due to a poor choice of funds.

781
00:37:19,280 --> 00:37:21,319
Speaker 1: And so if you've been listening for any amount of time,

782
00:37:21,360 --> 00:37:24,440
Speaker 1: you know that we love Vanguard, we love Fidelity and Schwab.

783
00:37:24,880 --> 00:37:28,880
Speaker 1: Those are the discount brokerages who offer the diversified total

784
00:37:28,880 --> 00:37:32,880
Speaker 1: market style funds that we love with microscopic to virtually

785
00:37:32,920 --> 00:37:36,280
Speaker 1: non existent fees when we're talking hundreds of a percentage

786
00:37:36,320 --> 00:37:38,719
Speaker 1: point when it comes to what they're charging you, that's

787
00:37:38,800 --> 00:37:41,239
Speaker 1: what we want to see, either that or nothing at all. Yeah,

788
00:37:41,320 --> 00:37:43,960
Speaker 1: but I see those higher fees as like insult to injury,

789
00:37:44,040 --> 00:37:48,720
Speaker 1: especially when that fee laden fund is underperforming those broader markets,

790
00:37:48,760 --> 00:37:50,680
Speaker 1: super cheap index funds that that you and I love.

791
00:37:50,719 --> 00:37:53,719
Speaker 1: It's quite literally kicking you while you're down. Yes, yes

792
00:37:53,760 --> 00:37:56,920
Speaker 1: it is. And so let's say you are invested in

793
00:37:56,960 --> 00:38:01,040
Speaker 1: a way that aligns with your own specific risk. Laurance, Well,

794
00:38:01,120 --> 00:38:04,360
Speaker 1: an important step to take when it comes to staying

795
00:38:04,360 --> 00:38:07,360
Speaker 1: the course is to insulate yourself from the feeling of

796
00:38:07,400 --> 00:38:10,440
Speaker 1: pain when the market is not doing so hot. Not

797
00:38:10,560 --> 00:38:14,279
Speaker 1: by avoiding market participation, not by not investing, but might

798
00:38:14,400 --> 00:38:16,840
Speaker 1: not looking at what's going on with your portfolio. That

799
00:38:17,080 --> 00:38:19,160
Speaker 1: is a mistake I think people people make is that

800
00:38:19,160 --> 00:38:21,759
Speaker 1: they're they pay too much attention. Because once you kind

801
00:38:21,760 --> 00:38:23,799
Speaker 1: of have your strategy down, once you know your risk,

802
00:38:23,800 --> 00:38:27,279
Speaker 1: Colorance and once you have started stocking money in every

803
00:38:27,280 --> 00:38:30,719
Speaker 1: two weeks like clockwork on on the rag, well, who

804
00:38:30,760 --> 00:38:33,600
Speaker 1: cares what's happening. You're gonna want to continue to ride

805
00:38:33,600 --> 00:38:36,080
Speaker 1: it out through thick and through thin. And so what

806
00:38:36,160 --> 00:38:37,719
Speaker 1: you might need to do is to one yet not

807
00:38:37,760 --> 00:38:41,520
Speaker 1: look at your portfolio performance, especially especially in times of turbulence,

808
00:38:41,680 --> 00:38:44,840
Speaker 1: and also avoid the headlines. So don't log into your

809
00:38:44,880 --> 00:38:47,400
Speaker 1: account and kind of see that you're down six percent

810
00:38:47,440 --> 00:38:50,759
Speaker 1: on the week or on the year. Right, those those

811
00:38:50,800 --> 00:38:54,960
Speaker 1: inputs and and seeing them firsthand can trigger an emotional reaction,

812
00:38:55,320 --> 00:38:59,240
Speaker 1: leading to potentially a knee jerk reaction on your part, selling,

813
00:38:59,280 --> 00:39:03,480
Speaker 1: maybe at the wrong time, locking in losses. And yeah,

814
00:39:03,719 --> 00:39:07,200
Speaker 1: this costs you money and it negatively impacts your financial future,

815
00:39:07,320 --> 00:39:10,400
Speaker 1: especially if you're moving money that is in the market

816
00:39:10,719 --> 00:39:14,879
Speaker 1: while it's down into cash. You're doing the exact opposite thing.

817
00:39:15,239 --> 00:39:17,200
Speaker 1: We want to see you, uh, we want to see

818
00:39:17,200 --> 00:39:19,920
Speaker 1: you actually funneling more of your cash from the sidelines

819
00:39:20,200 --> 00:39:23,960
Speaker 1: into the market to take advantage of basically the sale

820
00:39:24,000 --> 00:39:26,839
Speaker 1: that's happening in the market at the current moment. And so,

821
00:39:27,000 --> 00:39:28,680
Speaker 1: but it's really important to kind of have a couple

822
00:39:28,719 --> 00:39:31,399
Speaker 1: of mechanisms in place that prevents you from doing something

823
00:39:31,440 --> 00:39:35,000
Speaker 1: that's emotionally charged, that could that could ultimately affect your

824
00:39:35,120 --> 00:39:38,319
Speaker 1: future wealth by thousands or tens of thousands of dollars. Yeah,

825
00:39:38,360 --> 00:39:41,399
Speaker 1: it's important to remember that these temporary market downturns, they're

826
00:39:41,400 --> 00:39:44,399
Speaker 1: not costing you anything unless you sell. Once you sell,

827
00:39:44,560 --> 00:39:47,160
Speaker 1: you cement those losses. Uh. And So in the game

828
00:39:47,200 --> 00:39:49,960
Speaker 1: of investing, it's important to think and act for the

829
00:39:50,000 --> 00:39:53,760
Speaker 1: long term. And you do that by reminding yourself why

830
00:39:53,840 --> 00:39:55,520
Speaker 1: it is that you're investing in the first place. And

831
00:39:55,520 --> 00:39:57,680
Speaker 1: and for most of us, it isn't to get filthy rich.

832
00:39:57,719 --> 00:40:00,200
Speaker 1: That's not that's not our goal. It sounds nice, but

833
00:40:00,280 --> 00:40:02,640
Speaker 1: it's not our goal, right. Not many of us need

834
00:40:03,040 --> 00:40:05,720
Speaker 1: or want tens of millions of dollars in assets. Instead,

835
00:40:05,760 --> 00:40:08,120
Speaker 1: we would rather get to a point of financial security

836
00:40:08,400 --> 00:40:10,759
Speaker 1: and then hopefully to be able to chief financial independence

837
00:40:11,040 --> 00:40:13,400
Speaker 1: in a reasonable amount of time. Uh. And So when

838
00:40:13,440 --> 00:40:16,480
Speaker 1: you remember why it is that you're investing chasing these returns,

839
00:40:16,480 --> 00:40:19,560
Speaker 1: it seems less important all of a sudden. It's why

840
00:40:19,560 --> 00:40:21,799
Speaker 1: it's so important to keep your timeline in mind. Right,

841
00:40:21,840 --> 00:40:24,480
Speaker 1: going back to like the running uh analogy, If you

842
00:40:24,520 --> 00:40:26,560
Speaker 1: know it's it's difficult to know how fast you should

843
00:40:26,560 --> 00:40:28,160
Speaker 1: be running if you don't know if you're running for

844
00:40:28,160 --> 00:40:30,960
Speaker 1: a hundred meters or if you're running a tin k, right,

845
00:40:30,960 --> 00:40:32,879
Speaker 1: and so that's going to have a massive impact on

846
00:40:33,160 --> 00:40:36,000
Speaker 1: the pace at which you're expecting to run. And so

847
00:40:36,080 --> 00:40:38,400
Speaker 1: the same thing is true when it comes to the

848
00:40:38,480 --> 00:40:41,600
Speaker 1: rate at what you expect to see returns within your portfolio. Yeah,

849
00:40:41,600 --> 00:40:43,840
Speaker 1: I like that, Matt. If you remember that you're investing

850
00:40:43,960 --> 00:40:47,680
Speaker 1: for future retirement, that you're still thirty years away from

851
00:40:47,800 --> 00:40:52,399
Speaker 1: the desire or the feeling you have like I need

852
00:40:52,440 --> 00:40:54,799
Speaker 1: to double my money by investing in some sort of

853
00:40:54,840 --> 00:40:58,680
Speaker 1: speculative asset within the next three to six months. Well

854
00:40:58,719 --> 00:41:00,239
Speaker 1: that kind of goes away because you're like, that's not

855
00:41:00,280 --> 00:41:01,719
Speaker 1: the game I'm playing, Like why am I? Why am

856
00:41:01,760 --> 00:41:03,600
Speaker 1: I even trying for that? Really, all I want is

857
00:41:03,760 --> 00:41:06,520
Speaker 1: financial independence twenty years down the road. And so you

858
00:41:06,520 --> 00:41:08,440
Speaker 1: can kind of like chill Ox and let other people,

859
00:41:08,680 --> 00:41:11,560
Speaker 1: you know, do their crazy gambling thing all that take

860
00:41:11,600 --> 00:41:13,680
Speaker 1: part in all that speculation. You don't have to do

861
00:41:13,719 --> 00:41:16,719
Speaker 1: it because you're not playing that game. And then ultimately,

862
00:41:16,760 --> 00:41:18,279
Speaker 1: what we would say when it comes to the stock

863
00:41:18,320 --> 00:41:21,040
Speaker 1: market is is there's no better alternative when you're looking

864
00:41:21,080 --> 00:41:23,839
Speaker 1: to grow wealth over the long haul. Again, if you're

865
00:41:23,840 --> 00:41:25,920
Speaker 1: in the wealth building phase of your life, the stock

866
00:41:25,960 --> 00:41:28,120
Speaker 1: market is where you're gonna want to be stashing dough.

867
00:41:28,560 --> 00:41:32,120
Speaker 1: Despite the volatility and the lackluster future predictions. You know,

868
00:41:32,160 --> 00:41:34,560
Speaker 1: if you haven't noticed, even with recent upticks in what

869
00:41:34,640 --> 00:41:38,640
Speaker 1: savings accounts are paying rates on money or stashing away

870
00:41:38,920 --> 00:41:41,359
Speaker 1: with your bank, they still suck. And that doesn't mean

871
00:41:41,400 --> 00:41:43,839
Speaker 1: that you shouldn't be saving. You should, Like we're still

872
00:41:44,040 --> 00:41:46,680
Speaker 1: fans of people having liquid cash, like we talked about

873
00:41:46,680 --> 00:41:49,399
Speaker 1: earlier in the episode. It just means that you need

874
00:41:49,480 --> 00:41:52,200
Speaker 1: market exposure to grow your nest egg because if you're

875
00:41:52,239 --> 00:41:55,600
Speaker 1: just saving, you're not going to see your returns compound

876
00:41:55,600 --> 00:41:57,960
Speaker 1: in any meaningful way. And so yeah, while the next

877
00:41:58,000 --> 00:42:00,719
Speaker 1: few months and potentially even the next few years might

878
00:42:00,760 --> 00:42:05,080
Speaker 1: see smaller, insignificant returns, it's still smart to bet on

879
00:42:05,160 --> 00:42:09,400
Speaker 1: American ingenuity and to invest your money in our collective future.

880
00:42:09,440 --> 00:42:11,840
Speaker 1: I would say, in order to grow your wealth for

881
00:42:11,840 --> 00:42:15,319
Speaker 1: for your future. Really, when you're looking at alternatives, there

882
00:42:15,320 --> 00:42:19,600
Speaker 1: aren't many that rival the wealth building potential of the

883
00:42:19,680 --> 00:42:21,680
Speaker 1: U stock market. That's right, man, That's what we're putting

884
00:42:21,680 --> 00:42:24,320
Speaker 1: our money in the stock markets as well as into

885
00:42:24,360 --> 00:42:30,680
Speaker 1: the coffers of wonderful craft breweries, including those of Flying Machine.

886
00:42:31,080 --> 00:42:33,720
Speaker 1: This is Escape from Lagger Mountain. This is a dry

887
00:42:33,840 --> 00:42:36,600
Speaker 1: hopped rice logger with a couple of hops here that

888
00:42:36,640 --> 00:42:39,719
Speaker 1: they're calling out. And I noticed here too that this

889
00:42:39,760 --> 00:42:42,040
Speaker 1: is a beer out of Wilmington's. There are a lot

890
00:42:42,040 --> 00:42:45,280
Speaker 1: of great breweries in Wilmington in North Carolina in general,

891
00:42:45,320 --> 00:42:48,319
Speaker 1: but I mean specifically Wilmington. They must have really good

892
00:42:48,320 --> 00:42:50,960
Speaker 1: beer laws up there in the north in North Carolina,

893
00:42:51,000 --> 00:42:53,840
Speaker 1: and it's a incentivize all of this great brewing. But

894
00:42:54,000 --> 00:42:56,440
Speaker 1: what ye what your thoughts on this specific beer? Okay,

895
00:42:56,560 --> 00:42:59,080
Speaker 1: I will say I haven't had many rice loggers. I

896
00:42:59,080 --> 00:43:01,760
Speaker 1: haven't either, and I thought it was really tasty it

897
00:43:01,800 --> 00:43:04,200
Speaker 1: Maybe I should have more rice loggers because this one

898
00:43:04,239 --> 00:43:06,719
Speaker 1: was especially this summer year. It was nice and light,

899
00:43:06,760 --> 00:43:09,160
Speaker 1: but it also had those refreshing hot vibes like you

900
00:43:09,200 --> 00:43:11,759
Speaker 1: could tell the dry hops gave like nice hop a

901
00:43:11,840 --> 00:43:16,000
Speaker 1: roma and good hot flavor without being overpowering. And so

902
00:43:16,200 --> 00:43:17,840
Speaker 1: this was this was a great beer. I was a

903
00:43:17,840 --> 00:43:20,040
Speaker 1: big fan. Yeah. So from what I understand when it

904
00:43:20,080 --> 00:43:22,719
Speaker 1: comes to beers that are brewed with rice it's it

905
00:43:22,800 --> 00:43:25,640
Speaker 1: works as like a clarifying agent, and so it literally

906
00:43:25,640 --> 00:43:28,640
Speaker 1: makes it taste cleaner, like cleaner and fresher, which is

907
00:43:28,680 --> 00:43:31,560
Speaker 1: great when you're enjoying a nice cold logger like this,

908
00:43:31,640 --> 00:43:33,759
Speaker 1: but it also literally makes it clearer when you're looking

909
00:43:33,800 --> 00:43:36,040
Speaker 1: at it, and so it tends to pour a bit

910
00:43:36,080 --> 00:43:38,759
Speaker 1: clearer as a you know, compared to like a hazy

911
00:43:38,840 --> 00:43:42,080
Speaker 1: pale ale or something like that. But uh, the Flying

912
00:43:42,120 --> 00:43:43,760
Speaker 1: Machine and the fact that they have the skull in here,

913
00:43:43,840 --> 00:43:45,600
Speaker 1: this reminds me a lot of Is it parish that

914
00:43:45,640 --> 00:43:48,200
Speaker 1: has the like the ghost in the machine? I don't know.

915
00:43:48,239 --> 00:43:50,239
Speaker 1: There's a lot across the New Orleans Brewery right, there's

916
00:43:50,280 --> 00:43:53,839
Speaker 1: also a great brewery. But we definitely enjoyed this one

917
00:43:53,920 --> 00:43:57,120
Speaker 1: again from Flying Machine out of Wilmington, North Carolina. And

918
00:43:57,200 --> 00:43:58,680
Speaker 1: so if you're able to pick one of these up

919
00:43:58,719 --> 00:44:01,799
Speaker 1: wherever it is that you live, highly recommended, especially as

920
00:44:01,800 --> 00:44:04,840
Speaker 1: an alternative to those macro loggers out there that you

921
00:44:04,880 --> 00:44:07,120
Speaker 1: can buy. Yeah, this is one of those well crafted

922
00:44:07,160 --> 00:44:10,360
Speaker 1: loggers there, the macro ones. It's amazing how big of

923
00:44:10,360 --> 00:44:13,520
Speaker 1: a difference there are between a lot of the new

924
00:44:13,600 --> 00:44:16,239
Speaker 1: craft loggers that are being made. This one has a

925
00:44:16,239 --> 00:44:19,920
Speaker 1: ton of different flavor profile action going on. It's delicious

926
00:44:20,160 --> 00:44:22,600
Speaker 1: and it's clean, like you said, and versus like the

927
00:44:22,680 --> 00:44:25,800
Speaker 1: muddled just kind of like not not so great flavors.

928
00:44:26,040 --> 00:44:28,400
Speaker 1: Stinky logger yea, yeah, of the stinky ones that like

929
00:44:28,680 --> 00:44:32,520
Speaker 1: you smell like your uncle, you know, so you know,

930
00:44:32,360 --> 00:44:35,239
Speaker 1: you know whatich uncle we're talking about. Everyone's got one.

931
00:44:35,760 --> 00:44:37,560
Speaker 1: And plus the label on this beer is as really

932
00:44:37,560 --> 00:44:39,320
Speaker 1: beautiful as well. You can find a picture of it

933
00:44:39,400 --> 00:44:40,960
Speaker 1: up on our website at how the Money dot com,

934
00:44:41,000 --> 00:44:44,040
Speaker 1: along with any resources that we may have mentioned during

935
00:44:44,080 --> 00:44:47,040
Speaker 1: this episode. Right, and so if you if you haven't

936
00:44:47,040 --> 00:44:48,640
Speaker 1: signed up for the how the Money newsletter, by the way,

937
00:44:48,640 --> 00:44:50,440
Speaker 1: you totally should go at how the Money dot com

938
00:44:50,560 --> 00:44:53,640
Speaker 1: slash newsletter. We are sending it out for free once

939
00:44:53,640 --> 00:44:56,960
Speaker 1: a week into your inbox every single Tuesday morning. You'll

940
00:44:57,000 --> 00:44:59,120
Speaker 1: get some of the best financial nuggets that we have

941
00:44:59,200 --> 00:45:02,040
Speaker 1: to offer in your inbox. But Matt, that's going to

942
00:45:02,120 --> 00:45:04,920
Speaker 1: do it for this episode. Until next time. Best Friends Out,

943
00:45:04,960 --> 00:45:06,080
Speaker 1: Best Friends Out.