1 00:00:00,200 --> 00:00:10,920 Speaker 1: She's on the Money. She's on the Money. My name's 2 00:00:10,920 --> 00:00:11,800 Speaker 1: Tatasha Bamblet. 3 00:00:11,840 --> 00:00:14,040 Speaker 2: I'm a proud First Nations woman and I'm here to 4 00:00:14,120 --> 00:00:17,160 Speaker 2: acknowledge country. Hello, beautiful friends, we gather on the lands 5 00:00:17,160 --> 00:00:19,959 Speaker 2: of the Aboriginal people. We thank acknowledge and respect the 6 00:00:20,000 --> 00:00:22,680 Speaker 2: Aboriginal people's land that we're gathering on today. Take pleasure 7 00:00:22,680 --> 00:00:25,079 Speaker 2: in all the land and respect all that you see. 8 00:00:25,120 --> 00:00:29,520 Speaker 2: She's on the Money podcast acknowledges culture, country, community and connections, 9 00:00:29,600 --> 00:00:32,680 Speaker 2: bringing you the tools, knowledge and resources for you to thrive. 10 00:00:32,840 --> 00:00:35,559 Speaker 1: Hello, and welcome to She's on the Money, the podcast 11 00:00:35,560 --> 00:00:38,080 Speaker 1: where we discuss all of the issues concerning your wealth 12 00:00:38,120 --> 00:00:39,800 Speaker 1: goals so that you can feel more in control of 13 00:00:39,840 --> 00:00:43,159 Speaker 1: your financial future. I'm Victoria Devine, and this week we're 14 00:00:43,200 --> 00:00:46,440 Speaker 1: taking a closer look at the market, from the economy 15 00:00:46,479 --> 00:00:49,239 Speaker 1: to inflation, to its impact on the stock market, and 16 00:00:49,280 --> 00:00:52,320 Speaker 1: what predictions we might have for the twenty twenty seven 17 00:00:52,400 --> 00:00:55,360 Speaker 1: financial year. If you're feeling a little bit overwhelmed by 18 00:00:55,400 --> 00:00:58,080 Speaker 1: it all, we'll be breaking down what various market indicators 19 00:00:58,120 --> 00:01:01,080 Speaker 1: mean and how it might actually affect different sectors of 20 00:01:01,120 --> 00:01:05,800 Speaker 1: your finances, from wages and employment to your share portfolio. 21 00:01:06,360 --> 00:01:09,800 Speaker 1: Joining me today on the deep dive couch is the 22 00:01:09,880 --> 00:01:14,559 Speaker 1: voice of the people, Miss Becsi ed Beck. How are you? Oh? 23 00:01:14,720 --> 00:01:19,280 Speaker 3: Very well, I'm very excited to learn about tax and whatever. 24 00:01:19,600 --> 00:01:22,440 Speaker 3: We're not learning about tax, we're learning about the market 25 00:01:22,840 --> 00:01:24,080 Speaker 3: by end of financial year. 26 00:01:24,280 --> 00:01:27,400 Speaker 1: Yeah, okay, I did mention the end of financial that's it. Yeah, 27 00:01:27,600 --> 00:01:30,400 Speaker 1: you did clock in on that. I got humbled. I'm 28 00:01:30,440 --> 00:01:33,000 Speaker 1: so sorry, and I took the helm today. I did 29 00:01:33,000 --> 00:01:36,039 Speaker 1: the intro because I feel like I'm navigating this. 30 00:01:36,040 --> 00:01:37,080 Speaker 3: Ship, thank god. 31 00:01:37,120 --> 00:01:40,399 Speaker 1: Honestly, today we're doing the market update. And for those 32 00:01:40,440 --> 00:01:42,280 Speaker 1: of you who have been playing along at home for 33 00:01:42,360 --> 00:01:44,920 Speaker 1: a little while, you know how excited I get to 34 00:01:45,000 --> 00:01:49,320 Speaker 1: do a quarterly market update. Now this stuff lives rent 35 00:01:49,320 --> 00:01:52,240 Speaker 1: free in my mind. And I'll be leaning on you 36 00:01:52,320 --> 00:01:54,880 Speaker 1: Beck a little bit to ask any questions that you 37 00:01:55,000 --> 00:01:57,960 Speaker 1: might have along the way, because sometimes I get really 38 00:01:57,960 --> 00:02:01,360 Speaker 1: excited talking about inflation, and I think get that some 39 00:02:01,400 --> 00:02:07,280 Speaker 1: people in our community are like the stop backtrack, what inflation? Yeah, 40 00:02:08,120 --> 00:02:11,120 Speaker 1: that's okay. Whether it's about a particular market indicator like 41 00:02:11,240 --> 00:02:15,160 Speaker 1: inflation or a particular share or stock, just interrupt me. 42 00:02:15,440 --> 00:02:17,000 Speaker 1: Don't be afraid to ask questions. 43 00:02:17,280 --> 00:02:18,680 Speaker 3: But it's very sweet to watch you. 44 00:02:18,800 --> 00:02:21,919 Speaker 1: Oh it is, thank you, but also it's sweeter when 45 00:02:21,919 --> 00:02:23,640 Speaker 1: you get it. Yeah, so fair. 46 00:02:23,680 --> 00:02:25,079 Speaker 3: I know I'm not the only one who has questions, 47 00:02:25,120 --> 00:02:27,520 Speaker 3: particularly about specific events that have happened in the shear 48 00:02:27,560 --> 00:02:30,040 Speaker 3: market recently, which I know we'll get to later in 49 00:02:30,040 --> 00:02:32,360 Speaker 3: the episode, but please tell me what's going on in 50 00:02:32,360 --> 00:02:33,920 Speaker 3: the market. We're going to start sit down. 51 00:02:33,960 --> 00:02:37,240 Speaker 1: We're going to start with inflation, okay, and end on 52 00:02:37,360 --> 00:02:41,440 Speaker 1: maybe a little bit of an investing takeaway. But before 53 00:02:41,480 --> 00:02:43,800 Speaker 1: we get there, before we dive in, and before I 54 00:02:43,919 --> 00:02:47,120 Speaker 1: tackle SpaceX, we're going to take a really quick break. 55 00:02:51,320 --> 00:02:54,079 Speaker 1: Welcome back to a deep dive episode of She's on 56 00:02:54,120 --> 00:02:56,200 Speaker 1: the Money, where we are just about to get into 57 00:02:56,400 --> 00:03:00,520 Speaker 1: the new financial year updates, starting with our olgnate inflation amazing. 58 00:03:00,560 --> 00:03:04,120 Speaker 3: Okay, So I guess right off the bat, what actually 59 00:03:04,240 --> 00:03:06,840 Speaker 3: is inflation? If you could remind me, it's ups and 60 00:03:06,919 --> 00:03:08,799 Speaker 3: downs how to impact finances. 61 00:03:09,040 --> 00:03:12,040 Speaker 1: I literally led you down the garden path earlier. I 62 00:03:12,080 --> 00:03:14,160 Speaker 1: was like, oh, well, if you didn't understand inflation, ask 63 00:03:14,240 --> 00:03:16,120 Speaker 1: and you're like, hey, I'm going to ask about inflation. 64 00:03:16,200 --> 00:03:17,120 Speaker 3: P let woke up on that. 65 00:03:17,240 --> 00:03:20,880 Speaker 1: Yes, So basically, inflation refers to the purchasing power of 66 00:03:20,919 --> 00:03:24,320 Speaker 1: your money, which is important, Beck, because I'm assuming if 67 00:03:24,320 --> 00:03:26,480 Speaker 1: you've got money, you want it to purchase as much 68 00:03:26,520 --> 00:03:30,079 Speaker 1: as possible. Sure, good deal, good yesterday, Beck, a coffee 69 00:03:30,160 --> 00:03:32,840 Speaker 1: might have cost you six bucks, which, like I mean, 70 00:03:33,320 --> 00:03:36,440 Speaker 1: don't want to talk about that. But when inflation goes up, 71 00:03:36,720 --> 00:03:39,680 Speaker 1: the value of your money goes down, which means that 72 00:03:39,720 --> 00:03:42,839 Speaker 1: it might cost you more to purchase the exact same thing. 73 00:03:43,080 --> 00:03:46,720 Speaker 3: Hmm, okay, got you. So coffee might be eight dollars 74 00:03:46,800 --> 00:03:49,600 Speaker 3: even though it's the same being, same milk, everything like that. 75 00:03:49,680 --> 00:03:52,280 Speaker 1: Exactly, So instead of six bucks, you're now paying eight bucks, 76 00:03:52,280 --> 00:03:55,640 Speaker 1: but you still earn the exact same amount, So your 77 00:03:55,680 --> 00:03:58,760 Speaker 1: money isn't stretching as far as it used to. And 78 00:03:58,800 --> 00:04:04,080 Speaker 1: these things are track and measured globally with what's called 79 00:04:04,240 --> 00:04:07,240 Speaker 1: the consumer Price Index or you might have seen it 80 00:04:07,280 --> 00:04:11,040 Speaker 1: referred to as CPI, which measures the percentage change in 81 00:04:11,120 --> 00:04:14,440 Speaker 1: an average price of regular goods and services consumed by 82 00:04:14,480 --> 00:04:17,600 Speaker 1: each household. So stuff in your standard grocery trolley, like 83 00:04:17,600 --> 00:04:19,479 Speaker 1: if you're going to go to Woolies today, put a 84 00:04:19,480 --> 00:04:22,000 Speaker 1: whole heap of stuff in your trolley, take it home, 85 00:04:22,360 --> 00:04:23,880 Speaker 1: look at the price of that, and then we do 86 00:04:23,960 --> 00:04:26,440 Speaker 1: the same thing in twelve months, I can almost guarantee 87 00:04:26,480 --> 00:04:29,279 Speaker 1: it's more expensive. You're still getting the same bag of flour. 88 00:04:29,720 --> 00:04:33,640 Speaker 3: Yes, Oh my god, there's nothing more infuriating. But okay, 89 00:04:33,640 --> 00:04:35,600 Speaker 3: I got you. So when we say things like there's 90 00:04:35,640 --> 00:04:40,040 Speaker 3: a cost of living crisis because things like inflation have increased. 91 00:04:39,800 --> 00:04:43,800 Speaker 1: Yes, and we'll loop back to this, but some things 92 00:04:43,880 --> 00:04:47,960 Speaker 1: which might impact inflation, so like, it's not just food, 93 00:04:48,520 --> 00:04:53,080 Speaker 1: it's property and transport and material costs like beck, how 94 00:04:53,120 --> 00:04:56,920 Speaker 1: much it costs for something to be farmed and then transported, 95 00:04:56,960 --> 00:04:59,920 Speaker 1: for example, does also play into it. And at the moment, 96 00:05:00,000 --> 00:05:02,440 Speaker 1: I meant, we're feeling the ongoing impacts of the fuel 97 00:05:02,480 --> 00:05:04,719 Speaker 1: crisis on inflation. And I think it's one of the 98 00:05:04,760 --> 00:05:08,000 Speaker 1: first times that the general public and I say that liberally, 99 00:05:08,040 --> 00:05:11,120 Speaker 1: but the general public has been really concerned about oil prices, 100 00:05:11,520 --> 00:05:13,360 Speaker 1: like not in the way and I mean, you and 101 00:05:13,440 --> 00:05:16,160 Speaker 1: I have been complaining about the cost of a tank 102 00:05:16,200 --> 00:05:20,080 Speaker 1: of fuel for forever, but now we're like, oh, what's 103 00:05:20,160 --> 00:05:22,520 Speaker 1: going on in the strait of her muz And nobody 104 00:05:22,560 --> 00:05:24,359 Speaker 1: had ever heard of that before. But I feel like 105 00:05:24,400 --> 00:05:27,960 Speaker 1: the conversation is increasing because we're like, hey, this is 106 00:05:28,000 --> 00:05:30,680 Speaker 1: actually a bigger problem than we thought it was. Because 107 00:05:31,560 --> 00:05:34,200 Speaker 1: while like and going back to you know, the farming 108 00:05:34,240 --> 00:05:37,240 Speaker 1: and the transport of it all, some things are becoming 109 00:05:37,360 --> 00:05:40,520 Speaker 1: even more expensive to deliver and transport due to that 110 00:05:40,600 --> 00:05:43,719 Speaker 1: fuel crisis. And like, let's say you're a business owner, 111 00:05:43,839 --> 00:05:47,239 Speaker 1: especially a small business owner, if things like your energy 112 00:05:47,279 --> 00:05:50,599 Speaker 1: bills or your rent arising, then you might have to 113 00:05:50,720 --> 00:05:54,320 Speaker 1: increase your product costs or you might not have as 114 00:05:54,360 --> 00:05:57,440 Speaker 1: much cash flow. And like, cash flow is important because 115 00:05:57,440 --> 00:05:59,680 Speaker 1: you pay your staff with cash flow. You have to 116 00:05:59,720 --> 00:06:02,880 Speaker 1: pay taxes with your cash flow, So you might be 117 00:06:02,960 --> 00:06:05,680 Speaker 1: cutting your staff's shifts, right because you're like, oh, well, 118 00:06:06,200 --> 00:06:09,560 Speaker 1: I can't really increase the cost of my coffee beans. 119 00:06:10,000 --> 00:06:12,880 Speaker 1: Maybe I'll just you know, have staff on less. And 120 00:06:12,960 --> 00:06:16,160 Speaker 1: obviously that's a role on effect in the economy because 121 00:06:16,200 --> 00:06:18,720 Speaker 1: people are then taking homeless money. And like, it just 122 00:06:18,960 --> 00:06:22,200 Speaker 1: is cicklical. And this might not be as big a 123 00:06:22,240 --> 00:06:25,280 Speaker 1: deal if we're all earning enough to buy things that 124 00:06:25,279 --> 00:06:28,120 Speaker 1: we need to maintain a standard of living. But if 125 00:06:28,160 --> 00:06:32,720 Speaker 1: prices are generally increasing faster than people's incomes are, then 126 00:06:32,760 --> 00:06:35,479 Speaker 1: it becomes even more difficult for us to sustain a 127 00:06:35,560 --> 00:06:38,479 Speaker 1: decent quality of life or like be able to buy 128 00:06:38,520 --> 00:06:40,440 Speaker 1: the same things that we were buying last year. 129 00:06:40,600 --> 00:06:43,719 Speaker 3: Yes, that is so true. You can really see the 130 00:06:44,080 --> 00:06:46,800 Speaker 3: effects of that literally everywhere you go. So for a 131 00:06:46,800 --> 00:06:48,920 Speaker 3: word that's thrown around a lot, inflation is a pretty 132 00:06:48,920 --> 00:06:49,360 Speaker 3: big deal. 133 00:06:49,520 --> 00:06:51,040 Speaker 1: It's massive, it's huge. 134 00:06:51,279 --> 00:06:53,600 Speaker 3: So where are we at in Australia. 135 00:06:53,680 --> 00:06:59,680 Speaker 1: So Australia's headline inflation was projected at four point eight 136 00:06:59,720 --> 00:07:04,679 Speaker 1: percent in June. But our target inflation so we always 137 00:07:04,680 --> 00:07:09,360 Speaker 1: want inflation, right, So inflation is indicative of a growing economy. Sure, 138 00:07:09,480 --> 00:07:11,720 Speaker 1: I want us to have a growing economy. Yeah, but 139 00:07:11,800 --> 00:07:13,920 Speaker 1: we don't want it to be growing so fast that 140 00:07:13,960 --> 00:07:18,000 Speaker 1: it's not keeping up with wages. Right, So our target 141 00:07:18,160 --> 00:07:21,440 Speaker 1: for inflation was somewhere between two and three percent, but 142 00:07:21,560 --> 00:07:24,320 Speaker 1: we were four point eight percent. So, as you can imagine, 143 00:07:24,320 --> 00:07:26,520 Speaker 1: this might explain why it's harder for people to get 144 00:07:26,560 --> 00:07:29,000 Speaker 1: buy And can you guess how that might impact our 145 00:07:29,040 --> 00:07:29,920 Speaker 1: finances back? 146 00:07:30,160 --> 00:07:33,720 Speaker 3: Well, I guess no, actually, because it doesn't affect me. 147 00:07:33,800 --> 00:07:36,320 Speaker 1: No, I'm just like no, I don't even care about money. 148 00:07:36,600 --> 00:07:40,040 Speaker 3: It is hard to really do anything ever, all the time. 149 00:07:40,320 --> 00:07:43,200 Speaker 3: So if inflation keeps growing and stuff keeps getting more expensive, 150 00:07:43,280 --> 00:07:46,920 Speaker 3: people can't afford to buy stuff businesses cut their shifts 151 00:07:47,000 --> 00:07:50,080 Speaker 3: or worse, closed down, which means fewer jobs, less money 152 00:07:50,080 --> 00:07:52,560 Speaker 3: to buy basic grow throes, more housing and security. 153 00:07:53,200 --> 00:07:53,880 Speaker 1: It's a big deal. 154 00:07:53,960 --> 00:07:56,840 Speaker 3: So what can we do? How is inflation being managed? 155 00:07:57,120 --> 00:08:01,480 Speaker 1: Just deny it, deny, I deny, yes, Like, just pretend 156 00:08:01,520 --> 00:08:05,400 Speaker 1: it's not happening. No, Well, the Reserve Bank of Australia 157 00:08:05,520 --> 00:08:08,720 Speaker 1: or the RBA typically raises the cash rate to help 158 00:08:08,800 --> 00:08:12,000 Speaker 1: cool inflation. So we've been talking a lot about the 159 00:08:12,080 --> 00:08:15,960 Speaker 1: RBA hiking prices and everyone's stressed about that, but there's 160 00:08:16,040 --> 00:08:19,160 Speaker 1: actually good reason for it. So when they see inflation 161 00:08:19,320 --> 00:08:22,400 Speaker 1: growing too quickly, which is at the moment, they make 162 00:08:22,440 --> 00:08:25,120 Speaker 1: the call to raise the interest rate and this impacts 163 00:08:25,160 --> 00:08:29,160 Speaker 1: things like property and housing. So despite the speculations around 164 00:08:29,280 --> 00:08:33,800 Speaker 1: rate rising happening again, the RBA closed the financial year off, 165 00:08:33,800 --> 00:08:35,839 Speaker 1: and oh my goodness, I breathed the biggest sigh of 166 00:08:35,920 --> 00:08:40,160 Speaker 1: relief because obviously I run a mortgage breaking business and 167 00:08:40,240 --> 00:08:42,960 Speaker 1: any of my clients would have had an increase to 168 00:08:43,000 --> 00:08:46,040 Speaker 1: their rates and that's not cute. But they close off 169 00:08:46,080 --> 00:08:50,600 Speaker 1: the financial year, hallelujah, with a hold on the cash rates. 170 00:08:50,600 --> 00:08:52,520 Speaker 1: So they didn't increase I mean, they didn't decrease it, 171 00:08:52,520 --> 00:08:54,400 Speaker 1: which would have been nice, but I didn't expect that 172 00:08:54,480 --> 00:08:58,160 Speaker 1: because it was like not financially feasible, to be honest. 173 00:08:58,280 --> 00:09:01,480 Speaker 1: But they held the cash rate for point three five percent, 174 00:09:02,080 --> 00:09:06,200 Speaker 1: which is still the highest it's been since twenty eleven. Okay, 175 00:09:06,440 --> 00:09:08,560 Speaker 1: so it's quite high. So if you pay a mortgage, 176 00:09:08,600 --> 00:09:10,600 Speaker 1: or you pay rent, or even if you're invested in 177 00:09:10,640 --> 00:09:13,760 Speaker 1: these types of assets in your share portfolio, you're going 178 00:09:13,840 --> 00:09:16,200 Speaker 1: to start to see the influence of the cash rate 179 00:09:16,240 --> 00:09:18,720 Speaker 1: on your investments. Now, I'm still. 180 00:09:18,559 --> 00:09:21,000 Speaker 3: Relatively news to my own investing journey, as you know, 181 00:09:21,400 --> 00:09:23,560 Speaker 3: but can you explain how this might impact some of 182 00:09:23,600 --> 00:09:27,079 Speaker 3: the more popular stocks or like ETFs that our listeners 183 00:09:27,160 --> 00:09:28,280 Speaker 3: might be invested in. 184 00:09:28,440 --> 00:09:31,000 Speaker 1: Yes, so it could be like twofold, right, So when 185 00:09:31,040 --> 00:09:33,360 Speaker 1: the cash rate goes up back, yeah, you're making more 186 00:09:33,360 --> 00:09:35,920 Speaker 1: on your savings account, and lots of people are like, 187 00:09:36,000 --> 00:09:41,120 Speaker 1: yay money, wein like, my savings are getting more interest. Yeah, 188 00:09:41,160 --> 00:09:42,920 Speaker 1: but if you have a mortgage, you're like, what the heck, 189 00:09:43,080 --> 00:09:46,000 Speaker 1: I'm paying more and I don't like the sure Okay, 190 00:09:46,200 --> 00:09:48,960 Speaker 1: But we need to keep in mind that while things 191 00:09:49,360 --> 00:09:53,320 Speaker 1: like inflation are impacting us here in Australia, things like 192 00:09:53,480 --> 00:09:58,319 Speaker 1: global inflation, trading, and geopolitics affect overseas markets, and it's 193 00:09:58,520 --> 00:10:01,800 Speaker 1: it's not just a cost thing either. Like these things, 194 00:10:02,320 --> 00:10:05,480 Speaker 1: they impact our mindset when it comes to investing as well, 195 00:10:05,760 --> 00:10:09,800 Speaker 1: or what we call market sentiment if you're a professional 196 00:10:09,840 --> 00:10:13,560 Speaker 1: in the industry, and market sentiment is just basically how 197 00:10:13,559 --> 00:10:17,920 Speaker 1: comfortable people are to invest, Like people aren't that comfortable 198 00:10:17,920 --> 00:10:21,080 Speaker 1: to invest when life is really really expensive, when they 199 00:10:21,080 --> 00:10:24,600 Speaker 1: can't afford it, they're selling down their portfolios. But I 200 00:10:24,679 --> 00:10:26,720 Speaker 1: got some quick stats that I would like to share 201 00:10:26,720 --> 00:10:29,800 Speaker 1: with you please. These are of late June this year 202 00:10:30,640 --> 00:10:34,280 Speaker 1: when it comes to really popular ETFs here in Australia. 203 00:10:34,400 --> 00:10:37,200 Speaker 1: So across the board we have seen the impact of 204 00:10:37,240 --> 00:10:40,480 Speaker 1: the US Iran war from February this year. Like I 205 00:10:40,520 --> 00:10:42,720 Speaker 1: don't think that's going to be surprising to anyone, but 206 00:10:42,800 --> 00:10:46,240 Speaker 1: specifically we're seeing a disrupted oil supply and elevated global 207 00:10:46,320 --> 00:10:52,199 Speaker 1: energy prices which have prompted increased inflation across all three markets, 208 00:10:52,640 --> 00:10:55,360 Speaker 1: which has been driving sharp early quarter sell offs. Right, 209 00:10:55,440 --> 00:10:58,160 Speaker 1: so people are selling because stuff's just expensive and it's 210 00:10:58,200 --> 00:11:02,040 Speaker 1: really stressful. But weirdly enough, the SMP five hundred, which 211 00:11:02,080 --> 00:11:05,680 Speaker 1: is the top five hundred companies in the US actually 212 00:11:05,880 --> 00:11:09,679 Speaker 1: rows ten percent, like it increased in value by ten 213 00:11:09,720 --> 00:11:13,080 Speaker 1: percent since the US Iran War began. And this is 214 00:11:13,120 --> 00:11:16,640 Speaker 1: mostly due to the exponential investment in AI infrastructure. So 215 00:11:16,679 --> 00:11:19,960 Speaker 1: you've seen it everywhere. Everyone's talking about data warehousing, including 216 00:11:20,160 --> 00:11:24,800 Speaker 1: semiconductors and chips, so the things that are helping build AI. 217 00:11:24,960 --> 00:11:28,080 Speaker 1: So it's not necessarily just like AI in general, which 218 00:11:28,120 --> 00:11:31,320 Speaker 1: is like the operating system, but it's you know, the 219 00:11:31,400 --> 00:11:33,880 Speaker 1: things that actually create it in the background, because you 220 00:11:33,920 --> 00:11:39,440 Speaker 1: need really really strong powerful computers. I suppose to where's 221 00:11:39,480 --> 00:11:46,160 Speaker 1: the AI live beck, Yeah, right, So top performers like Navidia, Micron, Intel, 222 00:11:46,240 --> 00:11:49,760 Speaker 1: and Alphabet are all being publicly traded under this umbrella. 223 00:11:49,800 --> 00:11:53,080 Speaker 1: In fact, these companies are over indexing when it comes 224 00:11:53,120 --> 00:11:56,520 Speaker 1: to earnings per share, like they're killing it. Then the 225 00:11:56,600 --> 00:12:00,920 Speaker 1: Nasdaq Composite, which is again top one hundred cupmpanies also 226 00:12:01,120 --> 00:12:05,360 Speaker 1: referred to as the Nasdaq one hundred, it closed at 227 00:12:05,840 --> 00:12:07,240 Speaker 1: and that this might not mean a lot to you, 228 00:12:07,320 --> 00:12:11,240 Speaker 1: but I'll contextualize it twenty six one hundred and sixty 229 00:12:11,400 --> 00:12:16,400 Speaker 1: seven points, which is up thirty five percent right year 230 00:12:16,440 --> 00:12:19,200 Speaker 1: on year, which honestly is wild, Like to me that 231 00:12:19,400 --> 00:12:21,839 Speaker 1: is an insane amount of growth given we're in the 232 00:12:21,840 --> 00:12:25,640 Speaker 1: middle of a warback, there's so much going on. We're 233 00:12:25,640 --> 00:12:27,760 Speaker 1: in a cost of living crisis. I know it's hard 234 00:12:27,800 --> 00:12:30,400 Speaker 1: on us, but it is arguably even harder in the 235 00:12:30,520 --> 00:12:33,240 Speaker 1: US where they don't have the same types of infrastructure 236 00:12:33,280 --> 00:12:38,200 Speaker 1: and support. But it's still growing, Like, isn't that creep 237 00:12:38,280 --> 00:12:42,240 Speaker 1: You would think that maybe logically these things would be 238 00:12:42,320 --> 00:12:45,319 Speaker 1: growing at a slower rate because people aren't as excited 239 00:12:45,360 --> 00:12:48,000 Speaker 1: about these things because the cost of bread is just 240 00:12:48,080 --> 00:12:51,600 Speaker 1: too much. Yes, right, So we're a bit stressed. While 241 00:12:51,640 --> 00:12:54,680 Speaker 1: we're seeing like huge waves of investment and growth in AI, 242 00:12:54,840 --> 00:12:59,640 Speaker 1: we've also seen a growing culture of layoffs. Like everyone's 243 00:12:59,679 --> 00:13:01,760 Speaker 1: being made made redundant. I feel like we all have 244 00:13:01,800 --> 00:13:04,600 Speaker 1: a mate who's just been made redundant. And we're seeing 245 00:13:04,760 --> 00:13:10,080 Speaker 1: internationally as well, so like tech giants, Oracle, Amazon, Meta, Microsoft, 246 00:13:10,559 --> 00:13:14,880 Speaker 1: where there seems to be like a trend and I've 247 00:13:14,880 --> 00:13:18,960 Speaker 1: seen it all over TikTok of token maxing. I don't 248 00:13:18,960 --> 00:13:22,360 Speaker 1: know if you've seen this, but it's essentially the performative 249 00:13:22,440 --> 00:13:27,080 Speaker 1: overuse of AI to signal productivity. So people are like, oh, 250 00:13:27,120 --> 00:13:29,560 Speaker 1: we're using heaps of AI, We're placing lots of like 251 00:13:29,760 --> 00:13:33,880 Speaker 1: you know, stuff with aio live love or something. I 252 00:13:33,920 --> 00:13:37,640 Speaker 1: don't know, but hilariously, and I think this is kind 253 00:13:37,679 --> 00:13:42,760 Speaker 1: of funny people. And in Australia, this is happening. They're going, 254 00:13:42,840 --> 00:13:45,840 Speaker 1: We're going to replace things with AI. That's great. We've 255 00:13:45,920 --> 00:13:48,600 Speaker 1: just you know, budgeted one hundred million dollars for this 256 00:13:48,679 --> 00:13:52,400 Speaker 1: AI thing, but they actually haven't taken into consideration the 257 00:13:52,480 --> 00:13:56,600 Speaker 1: tokens that are necessary for performing specific tasks. And they're 258 00:13:56,640 --> 00:14:00,440 Speaker 1: blowing through their entire hundred million dollar budgets in like 259 00:14:00,480 --> 00:14:02,760 Speaker 1: the first three months of the year. But that budget 260 00:14:02,920 --> 00:14:06,800 Speaker 1: was meant to last for twelve months, right, Okay. In 261 00:14:06,840 --> 00:14:08,920 Speaker 1: a way, I'm like, serves you, right. 262 00:14:08,760 --> 00:14:10,040 Speaker 3: It's kind of satisfying. 263 00:14:10,240 --> 00:14:13,200 Speaker 1: It's kind of satisfying because I'm like, haha, like it 264 00:14:13,240 --> 00:14:15,160 Speaker 1: didn't work out the way that you thought it would 265 00:14:15,640 --> 00:14:17,920 Speaker 1: replacing humans. Did it work as well for you? 266 00:14:18,040 --> 00:14:19,040 Speaker 3: I guess better? 267 00:14:19,120 --> 00:14:21,680 Speaker 1: Yeah, exactly. And like, personally I love to see it. 268 00:14:22,000 --> 00:14:25,160 Speaker 1: I mean, I'm also really interested in AI because I'm like, oh, 269 00:14:25,200 --> 00:14:27,840 Speaker 1: how could this benefit our community? But they doesn't seem 270 00:14:27,880 --> 00:14:29,640 Speaker 1: to be And this is like a side note, There 271 00:14:29,680 --> 00:14:32,520 Speaker 1: doesn't seem to be a lot of conversation about like 272 00:14:32,840 --> 00:14:35,360 Speaker 1: adding value, Like how can we take Beck and her 273 00:14:35,440 --> 00:14:40,080 Speaker 1: role and use AI to make her uber like performative 274 00:14:40,520 --> 00:14:44,080 Speaker 1: or how do we make her super like productive and 275 00:14:44,120 --> 00:14:47,680 Speaker 1: like the best version of Beck? Yeah, but instead the 276 00:14:47,720 --> 00:14:50,120 Speaker 1: conversation is like, Okay, how do we take Beck's role 277 00:14:50,240 --> 00:14:51,480 Speaker 1: and replace it with a robot? 278 00:14:51,640 --> 00:14:51,840 Speaker 3: Yeah? 279 00:14:52,000 --> 00:14:55,120 Speaker 1: Fully like and yeah, anyway, I just have a lot 280 00:14:55,120 --> 00:14:57,360 Speaker 1: of conversation that I want to have about that. And 281 00:14:57,440 --> 00:15:00,360 Speaker 1: also like if you're using AI at your job and 282 00:15:00,400 --> 00:15:04,600 Speaker 1: you're like, you know, turbo charging what you're doing at work, 283 00:15:04,640 --> 00:15:06,720 Speaker 1: and you're like, you know, you're managing that whole process 284 00:15:06,720 --> 00:15:08,960 Speaker 1: and you're saving like six hours a day, does that 285 00:15:09,000 --> 00:15:10,960 Speaker 1: mean you're meant to work another six hours a day 286 00:15:11,000 --> 00:15:12,960 Speaker 1: for that employer or do we have to change the 287 00:15:13,000 --> 00:15:15,720 Speaker 1: way that things are working right? I don't know. I 288 00:15:15,760 --> 00:15:17,720 Speaker 1: just have a lot of questions. Oh yeah, I didn't 289 00:15:17,720 --> 00:15:20,880 Speaker 1: think about that anyway. We saw a really huge drop 290 00:15:21,000 --> 00:15:23,720 Speaker 1: in assets, like in the asset when it goes back 291 00:15:23,760 --> 00:15:27,080 Speaker 1: to like the tokavaxine conversation because ive got derailed. Apologies. 292 00:15:27,680 --> 00:15:31,520 Speaker 1: We saw a huge drop in assets in April due 293 00:15:31,560 --> 00:15:35,120 Speaker 1: to tariff changes because our old mate Trumpy Trump decided 294 00:15:36,040 --> 00:15:39,240 Speaker 1: to tariff everybody, So I feel like anything can change. 295 00:15:39,480 --> 00:15:42,840 Speaker 1: Vanguard is a very popular conversation in our community, and 296 00:15:43,080 --> 00:15:45,960 Speaker 1: Vanguard shareholders have seen a bit of growth this year 297 00:15:46,000 --> 00:15:49,240 Speaker 1: with a general trend of value building over the last 298 00:15:49,240 --> 00:15:53,160 Speaker 1: twelve months, which proves our time in the market beats 299 00:15:53,200 --> 00:15:56,800 Speaker 1: timing the market philosophy again and again and again. So 300 00:15:57,280 --> 00:16:02,120 Speaker 1: I guess here the story was one of stability. People 301 00:16:02,160 --> 00:16:05,760 Speaker 1: wanted ongoing dividends during a time of tech uncertainty and 302 00:16:05,960 --> 00:16:09,920 Speaker 1: market volatility. Like, volatility is just where the market's going 303 00:16:10,000 --> 00:16:12,480 Speaker 1: up and down, and when things are more volatile, it's 304 00:16:12,520 --> 00:16:15,280 Speaker 1: happening more often. It's like more rough seas, and when 305 00:16:15,520 --> 00:16:18,000 Speaker 1: things are not so volatile, like it's just a general 306 00:16:18,040 --> 00:16:20,320 Speaker 1: lap of the ocean. Right, Does that make sense? That 307 00:16:20,360 --> 00:16:22,360 Speaker 1: does make sense. So then if we go to like 308 00:16:22,400 --> 00:16:25,720 Speaker 1: some more flashy tech ETFs and have a chat about those. 309 00:16:26,160 --> 00:16:28,680 Speaker 1: There are a number of flashy tech ETFs that make 310 00:16:28,760 --> 00:16:31,480 Speaker 1: up the NASDAQ one hundred or the SMP five hundred, 311 00:16:32,000 --> 00:16:36,080 Speaker 1: there was a lot of volatility. Vanguard funds saw a 312 00:16:36,160 --> 00:16:41,000 Speaker 1: steady rise, completely outperforming the SMP five hundred. So VDA, 313 00:16:41,120 --> 00:16:45,520 Speaker 1: which is Vanguard Energy, saw an increase of sixteen percent duh, 314 00:16:45,800 --> 00:16:50,560 Speaker 1: because of like the Iruan US War Pressures VYM, which 315 00:16:50,560 --> 00:16:54,600 Speaker 1: is the Vanguard High Dividend Yield ETF, saw an increase 316 00:16:54,840 --> 00:16:58,840 Speaker 1: of eight point one percent, and that comprises of like 317 00:16:58,960 --> 00:17:01,000 Speaker 1: just to give you some context, that's a little bit 318 00:17:01,000 --> 00:17:08,200 Speaker 1: more conservative, and they are more incompaigning companies and AI chips, 319 00:17:08,200 --> 00:17:10,680 Speaker 1: which kind of makes sense as to why that's increased. 320 00:17:10,840 --> 00:17:13,679 Speaker 1: And then VO which is a very popular one in 321 00:17:13,720 --> 00:17:17,760 Speaker 1: our community, which is the Vanguard SMP five hundred ETF, 322 00:17:18,160 --> 00:17:21,840 Speaker 1: that was up by four percent. And that even though 323 00:17:21,880 --> 00:17:25,280 Speaker 1: that is the Vanguard SMP five hundred, that still beat 324 00:17:25,320 --> 00:17:28,160 Speaker 1: the SMP, but not by as much as the other 325 00:17:28,240 --> 00:17:32,200 Speaker 1: Vanguard funds, okay, And I think that that was interesting 326 00:17:32,200 --> 00:17:34,640 Speaker 1: because lots of US are looking at those ETFs at 327 00:17:34,640 --> 00:17:37,720 Speaker 1: the moment. And then closer to home, so we've been 328 00:17:37,720 --> 00:17:41,000 Speaker 1: talking about the SMP five hundred which is America closer 329 00:17:41,000 --> 00:17:43,520 Speaker 1: to home, the ASX two hundred, which is the Australian 330 00:17:43,560 --> 00:17:49,680 Speaker 1: Stock Exchange top two hundred companies. They closed at eighty 331 00:17:49,760 --> 00:17:54,720 Speaker 1: eight hundred points, which is actually down zero point nine percent, 332 00:17:55,320 --> 00:17:57,239 Speaker 1: which is year to date. So I've just got like 333 00:17:57,320 --> 00:18:01,720 Speaker 1: late June statistics in front of me. Over the last 334 00:18:02,000 --> 00:18:04,160 Speaker 1: you know year, like since the start of the year, 335 00:18:04,520 --> 00:18:09,119 Speaker 1: it's awesome, Like peak growth in about February. That was 336 00:18:09,400 --> 00:18:12,520 Speaker 1: energy driven, so like that was energy driven inflation with 337 00:18:12,880 --> 00:18:16,560 Speaker 1: three consecutive Like the RBA was increasing the interest rates, 338 00:18:16,680 --> 00:18:21,560 Speaker 1: so that obviously then filtered into the general market, and 339 00:18:21,640 --> 00:18:24,480 Speaker 1: I reckon the RBA interest rate hikes might have weighed 340 00:18:24,480 --> 00:18:27,680 Speaker 1: down overall gains because people are getting a bit stressed 341 00:18:27,720 --> 00:18:29,840 Speaker 1: and like we're being a little bit more conservative and 342 00:18:29,920 --> 00:18:32,479 Speaker 1: not investing as much. So obviously that's going to mean 343 00:18:32,480 --> 00:18:35,159 Speaker 1: that the top two hundred companies in Australia aren't going 344 00:18:35,240 --> 00:18:36,959 Speaker 1: to have seen as much growth. 345 00:18:37,400 --> 00:18:39,440 Speaker 3: Got you? Okay, So it sounds like we aren't getting 346 00:18:39,520 --> 00:18:42,520 Speaker 3: the same sort of growth here in Australia maybe because 347 00:18:42,520 --> 00:18:44,159 Speaker 3: we aren't like Silicon Valley. 348 00:18:44,240 --> 00:18:47,840 Speaker 1: Yeah, Silicon Valley is like big dog. That's like the 349 00:18:48,480 --> 00:18:51,240 Speaker 1: tech hub in the US. Like if you're a tech 350 00:18:51,400 --> 00:18:55,080 Speaker 1: company and you exist in America and you exist not 351 00:18:55,200 --> 00:18:57,600 Speaker 1: in Silicon Valley, they like you look down their nose 352 00:18:57,640 --> 00:19:01,240 Speaker 1: at you. Got you. Yeah, it's like the fancy tech hub. 353 00:19:01,560 --> 00:19:03,880 Speaker 1: It's like where Apple is, It's where Microsoft is, It's 354 00:19:03,880 --> 00:19:07,119 Speaker 1: where all of those big companies like live. Yeah, that 355 00:19:07,160 --> 00:19:07,880 Speaker 1: makes sense. 356 00:19:07,760 --> 00:19:10,679 Speaker 3: Too, Okay, So just somebody keep in mind maybe when 357 00:19:10,720 --> 00:19:12,200 Speaker 3: you're like considering your next move. 358 00:19:12,320 --> 00:19:14,800 Speaker 1: Yeah, we're definitely not getting the same amount of growth 359 00:19:15,119 --> 00:19:19,119 Speaker 1: in Australia as we're seeing internationally. Yeah, and do you 360 00:19:19,160 --> 00:19:22,639 Speaker 1: know what that's okay? Because like slow and steady wins 361 00:19:22,640 --> 00:19:26,480 Speaker 1: the race Beeck, Like we love consistency, Like I don't 362 00:19:26,520 --> 00:19:29,560 Speaker 1: need something super super shiny and super exciting, because every 363 00:19:29,560 --> 00:19:33,280 Speaker 1: time you've ever chased a share for its return, most 364 00:19:33,280 --> 00:19:37,080 Speaker 1: people will be like it backfired, I e. SpaceX. Anyway, 365 00:19:37,480 --> 00:19:40,320 Speaker 1: I think that's where it's so important to talk about 366 00:19:40,400 --> 00:19:43,840 Speaker 1: your money values and how they might impact your choice 367 00:19:43,920 --> 00:19:47,440 Speaker 1: to invest. Like, for example, you might really love Beck 368 00:19:47,480 --> 00:19:51,320 Speaker 1: the idea of space, but you really don't like Elon Musk, 369 00:19:52,400 --> 00:19:56,040 Speaker 1: which is so fair absolutely, Like I love space, I 370 00:19:56,040 --> 00:19:58,800 Speaker 1: do not love Elon Musk. No, Like, can you imagine 371 00:19:58,840 --> 00:20:03,320 Speaker 1: Beck being a trillion and having the ability to change 372 00:20:03,359 --> 00:20:07,800 Speaker 1: the entire world? You could eradicate global poverty, yeah, I know, 373 00:20:08,440 --> 00:20:12,240 Speaker 1: you could eradicate global hunger, Like, you could do so much, 374 00:20:12,600 --> 00:20:14,720 Speaker 1: and you just don't. You just buy a yacht. 375 00:20:14,960 --> 00:20:15,720 Speaker 3: That's crazy. 376 00:20:16,040 --> 00:20:19,320 Speaker 1: That makes me sick, I know anyway, But that's again 377 00:20:19,480 --> 00:20:24,280 Speaker 1: another story for another day, Like, I just trillionaires shouldn't exist. 378 00:20:24,320 --> 00:20:27,240 Speaker 1: I've written before, as you know, but I don't know 379 00:20:27,280 --> 00:20:29,880 Speaker 1: if everyone in our community knows. Every week I write 380 00:20:29,920 --> 00:20:32,320 Speaker 1: a column for The Age and the Sydney Morning Herald 381 00:20:32,520 --> 00:20:34,800 Speaker 1: and it comes out on a Sunday, and a while 382 00:20:34,800 --> 00:20:37,040 Speaker 1: ago it's still one of my most popular articles on 383 00:20:37,040 --> 00:20:40,440 Speaker 1: the website. I wrote about how I don't think billionaires 384 00:20:40,480 --> 00:20:45,240 Speaker 1: should exist, like nobody needs to be a billionaire. Nobody, nobody. Anyway, 385 00:20:45,600 --> 00:20:48,600 Speaker 1: that's a side note. Let's jump back into market recap. 386 00:20:48,920 --> 00:20:50,880 Speaker 1: But yeah, I just I've got a lot to say 387 00:20:50,880 --> 00:20:54,280 Speaker 1: on Elon Musk. But if you don't like Elon Musk 388 00:20:54,400 --> 00:20:56,960 Speaker 1: and you do love the idea of space, maybe something 389 00:20:57,200 --> 00:21:00,680 Speaker 1: like a company called rocket Lab in New Zealand is 390 00:21:00,680 --> 00:21:02,280 Speaker 1: a company that you might be looking at, or you 391 00:21:02,320 --> 00:21:06,119 Speaker 1: could consider because they're trading under the Nazadaq one hundred 392 00:21:06,160 --> 00:21:10,440 Speaker 1: now too. Or maybe if you only support AI, if 393 00:21:10,440 --> 00:21:15,520 Speaker 1: it's being used to like benefit healthcare and medical research, 394 00:21:15,640 --> 00:21:17,800 Speaker 1: so those kind of companies might take your fancy. You 395 00:21:17,800 --> 00:21:19,600 Speaker 1: could look at something like that because you might go, 396 00:21:19,880 --> 00:21:22,359 Speaker 1: I don't want general employees being replaced, but I also 397 00:21:22,400 --> 00:21:24,720 Speaker 1: see a lot of benefit for AI being used in 398 00:21:24,760 --> 00:21:29,120 Speaker 1: the healthcare space, because better healthcare, better outcomes, better everything, right, 399 00:21:29,560 --> 00:21:31,680 Speaker 1: So it kind of pays to be aware of what's 400 00:21:31,720 --> 00:21:34,679 Speaker 1: out there and then find a situation that works for 401 00:21:34,720 --> 00:21:35,520 Speaker 1: you personally. 402 00:21:35,920 --> 00:21:38,000 Speaker 3: Just on that. Our community has been asking about this 403 00:21:38,119 --> 00:21:41,080 Speaker 3: SpaceX thing, and I always worry because if I say 404 00:21:41,160 --> 00:21:43,920 Speaker 3: too fast, it sounds like SpaceX, SpaceX, SpaceX. 405 00:21:43,960 --> 00:21:47,560 Speaker 1: I mean, he probably likes that. So we know that Ela. 406 00:21:47,359 --> 00:21:48,119 Speaker 3: Musk is behind it. 407 00:21:48,160 --> 00:21:51,000 Speaker 1: But what's the what is the I guess like big deal. 408 00:21:51,119 --> 00:21:53,320 Speaker 3: I think I get it, But what Why was it 409 00:21:53,400 --> 00:21:55,560 Speaker 3: valued at trillions of dollars and why were so many 410 00:21:55,600 --> 00:21:56,920 Speaker 3: people racing to buy it? 411 00:21:57,040 --> 00:22:01,919 Speaker 1: Okay, so SpaceX wasn't I. That happened recently, and an 412 00:22:01,920 --> 00:22:05,080 Speaker 1: IPO is an initial public offering, So SpaceX was a 413 00:22:05,119 --> 00:22:08,280 Speaker 1: private company and an IPO is the first time it 414 00:22:08,320 --> 00:22:11,840 Speaker 1: appears on the general share market so that you and 415 00:22:11,920 --> 00:22:14,240 Speaker 1: I can buy it, so the general public has access 416 00:22:14,240 --> 00:22:16,960 Speaker 1: to it, right, And it was a big deal because 417 00:22:17,000 --> 00:22:19,520 Speaker 1: it was one of the largest, if not the most 418 00:22:19,640 --> 00:22:24,000 Speaker 1: valuable offerings in an IPO to date. So they were 419 00:22:24,000 --> 00:22:28,840 Speaker 1: looking to offer around five hundred and fifty five million 420 00:22:29,000 --> 00:22:34,600 Speaker 1: shares and raise approximately seventy five billion dollars to help 421 00:22:34,640 --> 00:22:38,399 Speaker 1: continue to fund their exploration and AI computing partnerships and 422 00:22:38,440 --> 00:22:42,920 Speaker 1: plans and all of this. Then once it launched, brought 423 00:22:42,920 --> 00:22:46,440 Speaker 1: this company's value up to around to get this one 424 00:22:46,480 --> 00:22:51,600 Speaker 1: point seven trillion American dollars. Wow, like that is way 425 00:22:51,600 --> 00:22:54,399 Speaker 1: too many zeros to put on this podcast. And so, 426 00:22:55,040 --> 00:22:57,840 Speaker 1: for better or for worse, the infamy around I guess 427 00:22:57,880 --> 00:23:03,000 Speaker 1: elon musk SpaceX itself like starlink as well as you 428 00:23:03,000 --> 00:23:07,040 Speaker 1: know the words the biggest IPO in history, Like this 429 00:23:07,119 --> 00:23:10,080 Speaker 1: thing popped off Beck Like everybody was like, are you 430 00:23:10,160 --> 00:23:12,879 Speaker 1: in on SpaceX? Have you bought SpaceX? Are you buying SpaceX? 431 00:23:12,960 --> 00:23:15,760 Speaker 1: To be very clear, I did not purchase SpaceX. It 432 00:23:15,800 --> 00:23:19,119 Speaker 1: didn't align with my values, Like it didn't you know, 433 00:23:19,200 --> 00:23:22,160 Speaker 1: it didn't fit with me. But even Gina rian Hart 434 00:23:22,720 --> 00:23:25,679 Speaker 1: bought a very big amount of shares in this, Like 435 00:23:25,760 --> 00:23:28,480 Speaker 1: she she publicly came out and was like, I bought, 436 00:23:28,800 --> 00:23:30,919 Speaker 1: you know, a billion dollars worth of shares. It's crazy, 437 00:23:31,359 --> 00:23:35,119 Speaker 1: but she doesn't play. There was so much speculation around 438 00:23:35,160 --> 00:23:38,199 Speaker 1: the valuation of this because it was so big and 439 00:23:38,280 --> 00:23:41,080 Speaker 1: after looking at the structure of the company, like it 440 00:23:41,200 --> 00:23:44,320 Speaker 1: wasn't going to be earning one point seven trillion dollars 441 00:23:44,400 --> 00:23:47,520 Speaker 1: anytime soon. Like that was just market optimism. That was 442 00:23:47,520 --> 00:23:50,200 Speaker 1: people being excited about being in on the next big 443 00:23:50,280 --> 00:23:55,320 Speaker 1: thing and buying something and pushing their value up really quickly. 444 00:23:55,400 --> 00:23:58,879 Speaker 1: But that doesn't mean beck it's sustainable. That number was 445 00:23:58,920 --> 00:24:03,440 Speaker 1: built on a projected value, Like they aren't profiting from 446 00:24:03,520 --> 00:24:06,280 Speaker 1: chips or semiconductors in the same way that a company 447 00:24:06,320 --> 00:24:10,480 Speaker 1: like Navidia is. Like Navidia is doing good stuff and 448 00:24:10,520 --> 00:24:13,159 Speaker 1: we've talked about it on the show before, but like 449 00:24:13,640 --> 00:24:18,879 Speaker 1: what SpaceX did was profit on potential and that's why 450 00:24:19,800 --> 00:24:24,520 Speaker 1: it literally push like it has in the last few days. 451 00:24:24,560 --> 00:24:29,399 Speaker 1: Slash weeks absolutely plummeted, Like yeah, people got excited, it 452 00:24:29,440 --> 00:24:32,800 Speaker 1: went up. There's market optimism. There's market optimism. The smart 453 00:24:32,800 --> 00:24:35,679 Speaker 1: investors that got into the IPO at the start and 454 00:24:35,720 --> 00:24:38,040 Speaker 1: they were like, I see people, I see they're going 455 00:24:38,119 --> 00:24:40,280 Speaker 1: to be really excited about this. I'm going to buy 456 00:24:40,280 --> 00:24:42,200 Speaker 1: it at the very beginning, and I'm going to sell 457 00:24:42,200 --> 00:24:44,800 Speaker 1: it at the top and watch everybody flounder. Wow, people 458 00:24:44,840 --> 00:24:47,399 Speaker 1: started selling off and getting rid of it and these 459 00:24:47,720 --> 00:24:52,040 Speaker 1: like the share price absolutely crashed and like I think 460 00:24:52,080 --> 00:24:54,639 Speaker 1: it was a big deal even if you didn't buy 461 00:24:54,720 --> 00:24:58,399 Speaker 1: because the SpaceX ipo. It shook up the market. People 462 00:24:58,440 --> 00:25:02,040 Speaker 1: were looking like people were like everybody had their finger 463 00:25:02,080 --> 00:25:04,960 Speaker 1: on the pulse, including me. Just because I wasn't buying 464 00:25:04,960 --> 00:25:07,479 Speaker 1: it doesn't mean I wasn't reading everything about it. And 465 00:25:07,520 --> 00:25:10,040 Speaker 1: it caused people to sell their chip stocks in order 466 00:25:10,240 --> 00:25:12,239 Speaker 1: to make their funds liquids so they could put more 467 00:25:12,240 --> 00:25:14,560 Speaker 1: money into SpaceX. So there was like a lot of 468 00:25:14,640 --> 00:25:18,280 Speaker 1: movement in the market. I see beck after one week 469 00:25:18,480 --> 00:25:21,280 Speaker 1: of trading publicly, we heard of people breaking even with 470 00:25:21,440 --> 00:25:24,199 Speaker 1: sell offs happening in the first few days. So not 471 00:25:24,320 --> 00:25:27,320 Speaker 1: only did we see the biggest valuation, but we also 472 00:25:27,440 --> 00:25:32,520 Speaker 1: saw the biggest instantaneous loss over one trillion dollars in 473 00:25:32,640 --> 00:25:33,679 Speaker 1: value of one uset. 474 00:25:34,080 --> 00:25:34,560 Speaker 3: Wow. 475 00:25:35,080 --> 00:25:40,560 Speaker 1: That is meant it was actually crazy and like completely predictable. 476 00:25:40,920 --> 00:25:44,080 Speaker 1: But so many people were so optimistic and like if 477 00:25:44,119 --> 00:25:46,000 Speaker 1: you think about the people that were purchasing it, like 478 00:25:46,000 --> 00:25:49,840 Speaker 1: obviously like Gina Ryan Hart, sure, but the average Joe 479 00:25:49,880 --> 00:25:52,920 Speaker 1: blow Yeah was talking about it the pub. They were like, 480 00:25:52,960 --> 00:25:54,520 Speaker 1: oh my god, did you see SpaceX? So you're going 481 00:25:54,600 --> 00:25:57,000 Speaker 1: to buy SpaceX? That's sick. I bought SpaceX. I put 482 00:25:57,000 --> 00:25:58,720 Speaker 1: five hundred bucks in and then someone goes home and 483 00:25:58,760 --> 00:26:00,879 Speaker 1: they go, maybe I should put five hundred bucks in? 484 00:26:01,080 --> 00:26:01,399 Speaker 3: Yeah. 485 00:26:01,680 --> 00:26:05,239 Speaker 1: Yeah, is that because you valuated the share? No it 486 00:26:05,359 --> 00:26:05,600 Speaker 1: was not. 487 00:26:06,520 --> 00:26:09,480 Speaker 3: So what's that saying? Is that like, like we shouldn't 488 00:26:09,480 --> 00:26:12,080 Speaker 3: be scared of every single share that's valued high? Like 489 00:26:12,240 --> 00:26:14,720 Speaker 3: does it mean like the bigger they are, the harder 490 00:26:14,760 --> 00:26:15,160 Speaker 3: they fall? 491 00:26:15,560 --> 00:26:18,320 Speaker 1: Exactly? And look, we don't know what the long term 492 00:26:18,400 --> 00:26:22,520 Speaker 1: picture on this looks like. Sure, but if SpaceX wasn't 493 00:26:22,520 --> 00:26:26,800 Speaker 1: aligned to your investing habits and goals before, maybe reassess 494 00:26:26,880 --> 00:26:29,800 Speaker 1: the market and the paperwork before leaping in on hype, 495 00:26:30,000 --> 00:26:34,000 Speaker 1: like literal hype that's all that's driving this good core exactly. 496 00:26:34,080 --> 00:26:36,240 Speaker 1: So we're going to go to a really quick break. 497 00:26:36,280 --> 00:26:38,280 Speaker 1: But after the break, we're going to be covering what 498 00:26:38,440 --> 00:26:40,760 Speaker 1: we predict might happen over the next few months and 499 00:26:40,800 --> 00:26:44,040 Speaker 1: what you might be considering based on this information. Don't 500 00:26:44,040 --> 00:26:50,720 Speaker 1: go anywhere, all right, Beck? Knowing what we know now 501 00:26:50,800 --> 00:26:53,760 Speaker 1: about the market this year and about recent events, what 502 00:26:53,960 --> 00:26:57,959 Speaker 1: things do we see popping up on the horizon. 503 00:26:57,720 --> 00:27:00,879 Speaker 3: So like, is there a kind of stocked harrow maybe 504 00:27:00,880 --> 00:27:03,960 Speaker 3: that we can do to figure out our next move? 505 00:27:04,600 --> 00:27:07,120 Speaker 1: Yeah, like you just head down to the South Melbourne market. Yeah, 506 00:27:07,119 --> 00:27:09,080 Speaker 1: when under the stairs is going to give you all 507 00:27:09,080 --> 00:27:11,680 Speaker 1: the stock tips. No that's not true. She'll just tell 508 00:27:11,720 --> 00:27:15,520 Speaker 1: you about your life and it's oddly confronting. But we're 509 00:27:15,520 --> 00:27:18,800 Speaker 1: going to continue on with this like AI and tech 510 00:27:18,960 --> 00:27:22,760 Speaker 1: story because I think everyone has heard rumors about both 511 00:27:22,880 --> 00:27:26,520 Speaker 1: Open AI and Anthropic joining the party late last year. 512 00:27:26,680 --> 00:27:29,240 Speaker 1: Ah so for those playing at home, they're the companies 513 00:27:29,280 --> 00:27:33,680 Speaker 1: behind your friends Chat, GPT, and Claude, respectively. So following 514 00:27:33,720 --> 00:27:37,200 Speaker 1: some series funding rounds and early vetting by the SEC 515 00:27:37,560 --> 00:27:41,280 Speaker 1: or the Securities and Exchange Commission, which is generally like 516 00:27:41,359 --> 00:27:43,760 Speaker 1: that's generally a sign that a company is gearing up 517 00:27:43,840 --> 00:27:47,199 Speaker 1: to be publicly listed, they might join the fold of 518 00:27:47,280 --> 00:27:51,800 Speaker 1: companies with a potential trillion dollar valuation, which is kind 519 00:27:51,800 --> 00:27:54,760 Speaker 1: of crazy, like these companies feel like they're coming out 520 00:27:54,800 --> 00:27:59,040 Speaker 1: of nowhere, but also they're just big, Like that's crazy. 521 00:27:59,240 --> 00:28:03,200 Speaker 1: But after what just happened with SpaceX, I guess we'd 522 00:28:03,280 --> 00:28:06,200 Speaker 1: strongly recommend a grain of salt. With all the hype 523 00:28:06,200 --> 00:28:11,080 Speaker 1: around these valuations, so fair like it just makes sense 524 00:28:11,240 --> 00:28:13,760 Speaker 1: to be having maybe a really big shake of salt. 525 00:28:14,160 --> 00:28:17,080 Speaker 3: Yeah, totally, And like people were going crazy for like 526 00:28:17,119 --> 00:28:20,160 Speaker 3: a space company, you know that's not in everyday life, 527 00:28:20,200 --> 00:28:22,600 Speaker 3: not well known about, like among every single person in 528 00:28:22,600 --> 00:28:25,280 Speaker 3: the world. But can you imagine the mania around the 529 00:28:25,320 --> 00:28:26,320 Speaker 3: AI assistance. 530 00:28:26,400 --> 00:28:29,120 Speaker 1: Yeah, it's actual madness, Beck, and I can only expect 531 00:28:29,480 --> 00:28:30,320 Speaker 1: more madness. 532 00:28:31,119 --> 00:28:34,119 Speaker 3: So how long can our listeners remain cool? Especially if 533 00:28:34,160 --> 00:28:37,000 Speaker 3: they're feeling tempted by these headlines in the coming months? 534 00:28:37,200 --> 00:28:40,520 Speaker 1: All right? So disclaimer, this is general advice only you 535 00:28:40,600 --> 00:28:44,320 Speaker 1: hold a general advice license. But I cannot and will 536 00:28:44,360 --> 00:28:46,920 Speaker 1: not tell you what to do. I can put information 537 00:28:47,000 --> 00:28:48,800 Speaker 1: on the table and I can share it with you, 538 00:28:48,880 --> 00:28:51,480 Speaker 1: and you can go away and make your own decisions, right, Yeah, 539 00:28:51,520 --> 00:28:53,360 Speaker 1: And all I ask, Beck, is for you and our 540 00:28:53,360 --> 00:28:57,400 Speaker 1: community to return to your money values and your investment goals. 541 00:28:57,440 --> 00:29:00,800 Speaker 1: And that sounds so lame, but like, if they are 542 00:29:00,880 --> 00:29:05,560 Speaker 1: long term, will buying this share or SpaceX or anthropic 543 00:29:05,640 --> 00:29:10,720 Speaker 1: or chat GPT or a different etf genuinely support your 544 00:29:10,720 --> 00:29:13,720 Speaker 1: long term growth? And if you aren't sure, my friend, 545 00:29:13,720 --> 00:29:16,160 Speaker 1: what research do you need to do to be really 546 00:29:16,200 --> 00:29:18,960 Speaker 1: confident in the decisions that you're making? Or are you 547 00:29:19,080 --> 00:29:23,560 Speaker 1: just hearing media and instagrams and TikTok about SpaceX and 548 00:29:23,600 --> 00:29:27,080 Speaker 1: making decisions on that? Please stop that? Like, how much 549 00:29:27,120 --> 00:29:30,640 Speaker 1: do you actually Beck know about semiconductors and chips, not 550 00:29:30,720 --> 00:29:34,240 Speaker 1: a lot, but like easily you could be convinced via 551 00:29:34,320 --> 00:29:37,520 Speaker 1: peer pressure to purchase into a share or into an 552 00:29:37,600 --> 00:29:40,840 Speaker 1: asset just because your mates are comfortable with it. Absolutely, 553 00:29:40,880 --> 00:29:43,080 Speaker 1: but you actually don't know a lot about these things, 554 00:29:43,120 --> 00:29:45,400 Speaker 1: and that doesn't make a lot of sense. So who 555 00:29:45,400 --> 00:29:47,719 Speaker 1: are the companies behind them? What's their story, what are 556 00:29:47,720 --> 00:29:49,960 Speaker 1: they doing? And I know it's so easy to be 557 00:29:50,040 --> 00:29:54,720 Speaker 1: swayed by headlines and then analysis paralysis, but truly understanding 558 00:29:54,880 --> 00:29:57,960 Speaker 1: what you are really investing in, whether it is a 559 00:29:58,080 --> 00:30:02,160 Speaker 1: product or it's a service or sheer potential like SpaceX, 560 00:30:03,080 --> 00:30:06,760 Speaker 1: it's gonna help you understand what it means to make 561 00:30:06,760 --> 00:30:09,960 Speaker 1: the right choice for you or feel better about the 562 00:30:10,000 --> 00:30:11,640 Speaker 1: wrong choices even when things dip. 563 00:30:11,920 --> 00:30:15,000 Speaker 3: Yeah, okay, that's so so fair, so nice. I think 564 00:30:15,040 --> 00:30:19,320 Speaker 3: that all sounds quite responsible, and honestly I trust it. 565 00:30:19,360 --> 00:30:23,880 Speaker 1: Go forth, go forth and prosper, but be very cautious 566 00:30:23,960 --> 00:30:28,400 Speaker 1: when people are excited about things, Because our mate Warren 567 00:30:28,440 --> 00:30:32,920 Speaker 1: Buffett says, be fearful when people are greedy, and greedy 568 00:30:32,960 --> 00:30:35,320 Speaker 1: when people are fearful, And I think that that is 569 00:30:35,360 --> 00:30:38,120 Speaker 1: a very good place to leave this episode, because when 570 00:30:38,120 --> 00:30:40,880 Speaker 1: you are seeing other people in the market be greedy 571 00:30:40,920 --> 00:30:43,640 Speaker 1: and buying up lots of stuff. There is the very 572 00:30:43,680 --> 00:30:47,920 Speaker 1: real possibility, and I say possibility because it's happened every 573 00:30:47,920 --> 00:30:53,080 Speaker 1: single time, that it's being driven by hype not by substance. Yes, Like, 574 00:30:53,280 --> 00:30:55,440 Speaker 1: there's actually not a lot of substance to it. And 575 00:30:55,480 --> 00:31:01,120 Speaker 1: whilst SpaceX Beck space is cool, Yeah, is so fun, 576 00:31:02,360 --> 00:31:05,080 Speaker 1: but they actually haven't done anything and they haven't sold 577 00:31:05,080 --> 00:31:09,760 Speaker 1: any product. We are buying that with potential. Yeah, I 578 00:31:09,800 --> 00:31:12,120 Speaker 1: cannot tell you how much I do not want to 579 00:31:12,160 --> 00:31:17,240 Speaker 1: grow my wealth based on someone's potential, let alone. Elon Musks. 580 00:31:17,320 --> 00:31:19,120 Speaker 3: Yeah, that's like so true. 581 00:31:19,240 --> 00:31:21,840 Speaker 1: I don't I just can you just prove it? Like 582 00:31:21,920 --> 00:31:24,320 Speaker 1: I'm just like the type of girl try it and true, 583 00:31:24,800 --> 00:31:27,360 Speaker 1: Like I love a bank share and I do so 584 00:31:27,560 --> 00:31:30,320 Speaker 1: personally because they just do what they said they were 585 00:31:30,360 --> 00:31:32,880 Speaker 1: gonna do. They're like, we're gonna, you know, keep people's 586 00:31:32,880 --> 00:31:36,200 Speaker 1: money safe, Well, do some loans, We'll make some profit 587 00:31:36,440 --> 00:31:37,880 Speaker 1: and then you know what we'll do, We'll share that 588 00:31:37,920 --> 00:31:40,760 Speaker 1: profit with you, Beck, Hell yeah, and you go thank you. 589 00:31:41,040 --> 00:31:44,880 Speaker 1: It might be small, but SpaceX, I think people get 590 00:31:44,920 --> 00:31:49,640 Speaker 1: really excited about things because of the potentially huge upside, 591 00:31:49,840 --> 00:31:53,080 Speaker 1: Like you see SpaceX and go, oh my god, trillions. 592 00:31:53,080 --> 00:31:55,560 Speaker 1: I want to be in on that. Yeah, but it's 593 00:31:55,600 --> 00:31:59,520 Speaker 1: not reality. Is that it's like gambling. That's why people 594 00:32:00,080 --> 00:32:03,280 Speaker 1: in the share market to gambling as opposed to going 595 00:32:03,280 --> 00:32:06,200 Speaker 1: Oh yep, a bank share They've existed in Australia as 596 00:32:06,200 --> 00:32:08,840 Speaker 1: long as you know, almost Australia has existed, and they've 597 00:32:08,880 --> 00:32:10,360 Speaker 1: just done what they said they were going to do. 598 00:32:10,840 --> 00:32:13,720 Speaker 1: And I've shared this example on the podcast before and 599 00:32:13,760 --> 00:32:17,840 Speaker 1: again it's not a recommendation, but NAB the bank has 600 00:32:17,920 --> 00:32:22,080 Speaker 1: never not paid a dividend. Yes, they've never not paid. 601 00:32:22,280 --> 00:32:24,840 Speaker 1: There's shareholders, they've never not paid the people that have 602 00:32:24,960 --> 00:32:25,680 Speaker 1: invested in them. 603 00:32:25,800 --> 00:32:28,640 Speaker 3: Yeah, yeah, I got SpaceX. 604 00:32:28,720 --> 00:32:31,280 Speaker 1: Dont just promised you all we're going to go to space? 605 00:32:31,720 --> 00:32:32,040 Speaker 3: Yeah? 606 00:32:32,120 --> 00:32:36,120 Speaker 1: You put Katie Perry on a spaceship? What a waste 607 00:32:36,120 --> 00:32:36,560 Speaker 1: of money? 608 00:32:36,680 --> 00:32:37,280 Speaker 3: Like random? 609 00:32:37,840 --> 00:32:41,040 Speaker 1: Yeah, she paid for that privilege, Like she got to 610 00:32:41,080 --> 00:32:45,640 Speaker 1: go into space at what cost? Like I just there 611 00:32:45,640 --> 00:32:48,680 Speaker 1: are so many ethical questions that pop up, So we 612 00:32:48,720 --> 00:32:51,640 Speaker 1: need to wrap this up same time next quarter. Hey, 613 00:32:52,040 --> 00:32:52,600 Speaker 1: let's do it. 614 00:32:52,680 --> 00:32:54,440 Speaker 3: I really don't know what's gonna happen between now and then, 615 00:32:54,520 --> 00:32:56,400 Speaker 3: but I can't wait to see all right. 616 00:32:56,440 --> 00:32:58,520 Speaker 1: Well, thank you, my friends, for joining us for another 617 00:32:58,600 --> 00:33:01,120 Speaker 1: She's on the Money market update. We hope that you 618 00:33:01,160 --> 00:33:04,640 Speaker 1: feel sufficiently informed, if not more, curious, about your own 619 00:33:04,640 --> 00:33:08,120 Speaker 1: investments and the investment world at large. We would love it, 620 00:33:08,360 --> 00:33:10,320 Speaker 1: Beck and I would love it because we have like 621 00:33:10,600 --> 00:33:12,840 Speaker 1: egos that need to be inflated. If you left us 622 00:33:12,840 --> 00:33:15,160 Speaker 1: a review, if you really loved this episode and found 623 00:33:15,200 --> 00:33:17,880 Speaker 1: it helpful. Otherwise, please feel free to follow us up 624 00:33:17,880 --> 00:33:20,000 Speaker 1: with any questions and make sure that you're subscribed so 625 00:33:20,160 --> 00:33:22,800 Speaker 1: you never miss an episode. Take care, my friends, and 626 00:33:22,840 --> 00:33:23,960 Speaker 1: we'll catch you on Friday. 627 00:33:24,120 --> 00:33:26,040 Speaker 3: Bye, guys. 628 00:33:29,200 --> 00:33:31,720 Speaker 1: The advice shared on She's on the Money is general 629 00:33:31,800 --> 00:33:35,640 Speaker 1: in nature and does not consider your individual circumstances. 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