Earn Your Leisure Podcast: Episode Summary
Title: Have We Reached the Bottom of the Stock Market Pullback?
Release Date: March 16, 2025
Hosts: EYL Network (Troy Millings, MG the Mortgage Guy, Tom Lee)
Description: In this episode, the Earn Your Leisure team dives deep into the current state of the stock market, offering expert analysis and investment strategies. They explore whether the market has hit its lowest point, discuss the merits of value versus growth stocks, and examine the potential impact of NASDAQ's move to 24-hour trading.
1. EYLU Relaunch and Future Plans (00:00 - 00:50)
The episode begins with Troy Millings announcing the exciting relaunch and expansion of Earn Your Leisure University (EYLU). This revamped platform aims to provide a more comprehensive educational experience for its members.
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MG the Mortgage Guy highlights the new features:
“[EYLU] already includes monthly financial planning calls with me, book club calls with Troy, real estate calls with MG the mortgage guy, access to the home buying blueprint volume one and volume two. Part of the revamp will include 27 local chapters from across the United States. Live interactive teaching, hands on, not just pre-recorded videos. Plus 15 brand new curriculums.”
[00:09] -
Tom Lee encourages listeners to visit the new EYLU website:
“Head over to eyluniversity.com that's E Y.”
[00:40] -
Troy emphasizes the expansion:
“The biggest just got bigger.”
[00:40]
Key Takeaway: EYLU is significantly expanding its offerings with live interactive sessions, numerous local chapters, and a variety of new educational materials to enhance members' financial literacy and investment knowledge.
2. Analyzing the Stock Market Bottom (00:54 - 08:53)
The core discussion revolves around whether the stock market has reached its bottom amidst recent pullbacks.
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Troy poses the central question:
“One of those questions that we get... people want to know where the bottom is, right?... Are we near it based on what you're seeing?”
[00:54] -
Tom Lee provides his perspective:
“No. 5, 540. 530 could be the bottom. SPY 5400.”
[01:25] -
MG the Mortgage Guy references Tom's bullish outlook:
“Tom Lee predicts, he said that this is the best time to buy stocks now and shout out to... he's predicting a massive rally in a couple of months.”
[01:32] -
Tom Lee elaborates on why it's an opportune time to invest:
“All the money's gonna flow in... All the greats are being quiet and executing... So if we get to like we are really at a point where if the market is off 15 to 30 in some markets now is the time to buy. We will have a nice rally.”
[01:43] -
He further advises on investment strategy:
“Buy in February and hold through October, November. You're going to get the Best return term of the day. Asymmetric risk to reward... Now is definitely a time to buy.”
[02:05] -
Tom stresses the importance of long-term investment:
“If you're looking to hold for the long term, long term investment only.”
[02:20]
Key Takeaway: Tom Lee is optimistic about the stock market's near-term prospects, suggesting that the current pullback presents a prime buying opportunity. He advises investors to act now and maintain a long-term perspective to maximize returns.
3. Value vs. Growth Stocks: Investment Strategies (03:23 - 08:53)
The conversation shifts to evaluating whether investors should pivot from chasing high-growth stocks to favoring value stocks amidst market volatility.
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MG the Mortgage Guy questions the shift:
“Is it time to ditch the chase for big gains and bunker down to safe value stocks only?”
[03:23] -
Tom Lee responds by emphasizing quality over sector:
“The real value is buying great companies at a great price... If you're a professional investor, I will focus on hyper concentration. I want to remind you, you only need four or five good stocks...”
[03:50] -
Troy and Tom discuss depreciation thresholds for different sectors:
“I like 25. In tech, is there, is there a...”
[04:57]“25% drop in the sector or similar if it's a high quality company... And if you join stock club, we get all sectors across the board.”
[07:31] -
Troy emphasizes the importance of historical analysis:
“Look at from a historical perspective... how many times in this history has it dropped 25... So when you see a rare moment like that happen, then you know this is probably a prime time to start executing.”
[07:58 - 08:18]
Key Takeaway: The hosts advocate for purchasing high-quality companies at favorable prices rather than categorically shifting to value stocks. They recommend evaluating historical performance and sector-specific downturns to identify optimal entry points for investment.
4. NASDAQ's Move to 24-Hour Trading: Implications for Investors (08:53 - 11:59)
The final major topic addresses NASDAQ's potential implementation of 24-hour trading and its effects on different types of investors.
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MG the Mortgage Guy introduces the topic:
“The NASDAQ is flirting with 24-hour trading. Will this be a game changer or will this be another thing to give Wall Street more power?”
[08:53] -
Tom Lee cautions against extended trading hours for most investors:
“It's a mistake for most people, the prime times are going to remain as prime times to invest... Don't fall for this trap and be very careful. Your trading plan should not change.”
[09:09 - 10:37] -
Troy expands on the retail investor perspective:
“This speaks to the retail investor... but like the house is going to win in that scenario when there's no value.”
[10:37 - 11:00] -
He further advises:
“I don't recommend it. It's just like I didn't recommend same day option trading. Like yeah. Can you make money doing it? Will a lot of people lose money? Yeah.”
[10:50 - 11:00]
Key Takeaway: While NASDAQ's move to 24-hour trading aims to cater to retail investors and innovate trading platforms, Tom Lee advises that most individual investors should remain cautious. He emphasizes sticking to traditional trading hours with higher liquidity to avoid the pitfalls associated with extended trading sessions.
Conclusion
Throughout the episode, Troy, MG, and Tom provide valuable insights into the current stock market landscape, emphasizing strategic investment approaches grounded in quality and historical performance. They encourage listeners to take advantage of market pullbacks by investing in robust companies and caution against being swayed by trends that may not align with long-term financial goals. Additionally, they highlight the importance of staying informed and adaptable in an ever-evolving financial environment.
Notable Quotes:
- “All the greats are being quiet and executing.” — Tom Lee [01:43]
- “The real value is buying great companies at a great price.” — Tom Lee [03:50]
- “Your trading plan should not change.” — Tom Lee [09:09]
Final Thought: Whether you're an experienced investor or just starting, this episode of Earn Your Leisure offers actionable strategies and cautionary advice to navigate the complexities of today's stock market effectively.