← Suze Orman's Women & Money (And Everyone Smart Enough To Listen)
Suze Orman's Women & Money (And Everyone Smart Enough To Listen)
Don’t Miss The Point of Investing
00:21:56
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Hi, everybody. Suzio here. Now, what is the goal of money? The goal of money is for you to be secure. And there is no better way for you to be secure than having an emergency savings account. It is essential for your financial foundation. So all of you should be participating in the Ultimate Opportunity savings account at Alliant Credit Union. Go to myalliant.com to find out more. And be secure. March 12th, 2026. Welcome, everybody, to the Women in Money podcast, as well as everybody smart enough to listen. I know, I know you're all freaking out because it's really Sunday when you're listening to this, most likely March 15, but I wanted to tell you March 12, because that is the day that I am recording this and I'm doing. Because Robert asked me for a favor. Could we do it earlier? So I said, absolutely. So it's important that you know when I recorded this, so you'll understand that in a second, because it has a lot to do with the price of oil, the price of Chevron, and so on and so forth. So I want you to get out your Susie notebooks because you really need to get this lesson that we're about to do today on Susie School. Now, before I begin, I want all of you, given that this podcast drops on March 15, can you just go and see what did Chevron actually close at last Friday? What is the price of wti? So let's just see what can happen in a few days. And by the way, you should all go to YouTube.com susie orman and take a look at the little synopsis that we did of last week's podcast. Look for warm money moves, and you'll see in just a few minutes everything that we really talked about that was important last Sunday. All right, one last thing, however. At the beginning of the year, we posted this thing called you'd roadmap for 2026 that goes to a website, which is where my blog and everything gets mailed out from. To all of you, it is not a scam. It is real. You haven't been hacked. It doesn't take you to a false website. It is absolutely true. So please just know that I know your little Susie notebooks out there. All right, now listen to me. You know, Fitzy or Keith Fitzgerald was on the podcast last weekend with me, and during that episode, he shared with all of you his absolute number one favorite energy stock. And that stock was Chevron. Now, after that episode aired, many of you wrote in with the exact same question. You said, susie, wait a minute. Chevron is at its all time highs. Are you really telling us we should buy it here? And you started to quote all these reasons why you were going to wait and how it was not a smart move to buy it right then and there. And I'm like going, are you kidding me? So I want you to understand that many investors, I get it, believe that they should only buy a stock when it has fallen. They think, hey, if it's already gone up, oh my God, I've missed it. Now, you did hear Fitzy say you should have bought it six months ago. Because the truth of the matter is he did say six months ago you should buy it. But he said it again. That's when it was like at 150. But he said it again that he would still buy it here. And when he said that it was right around $191 a share. the close of the stock market last night, early this morning, it closed at $192 a share. Now between last Sunday and yesterday night, it went down like from 192 to 187. And all of you were then writing saying, see, I told you I was right. See we should have waited. And now here it is back up again. That is not investing. When you are waiting for something to go down, you are missing the entire point. Everybody. You don't know what's going to happen. So it looked like maybe they would settle this war, maybe we're coming out of it. Then all of a sudden something happens and here we are back really in it. So you invest. And did I not say you should invest on a dollar cost averaging basis? Did I not say that? But I do get it. I get that you think when a stock has gone up so much, you think it's already gone up too high, I must have missed it. And then you think, oh, oil's going to go back down. So like I said before, I'm going to wait till the war is over. Really? Do you think investing is that simple? Do you think investing is that predictable? But here's the thing. Experienced investors seriously understand that most people, people don't. A stock hitting new highs is not always a warning sign, everybody. Sometimes it means something important in the world is changing. And you have to admit right now something really important is changing the past two weeks or how many ever days it's been. We are in essence at war again. That is a big change. And the other thing that has changed is the oil market just had a week unlike anything investors had seen in decades. So you have to understand what's going on here? And that is what the SUSI school today is all about. So by now, you really have gotten out your notebooks. Right? All right, let's start at the beginning. You hear me and Fitz and other people say WTI is going up, WTI is going down. Do you even know what WTI stands for? It stands for West Texas Intermediate Crude. And that happens to be everybody. The main US Oil benchmark. In the same way we quote the Standard and Poor's 500, the Dow Jones Industrial Average, the Nasdaq. Those are benchmarks. So WTI is the main U.S. oil benchmark. And WTI surged more than 35% in just that one week. Now, why is that so important? Because do you know that that was the largest weekly gain in the futures market since records began. WTI started to go from 60 to 85 to 90 to like 115, 120. And now as I'm recording this, it's back at about $88. You just need to know that your next question needs to be why, Susie? Why is this happening? And I think many of you absolutely know why. Why it is happening? It is because we are in conflict involving Iran, which has disrupted everybody. One of the most critical oil shimping routes in the world. Do you know what the name of that is? It's called the Strait of Hormuz. Got it. And why is that important? Because 20% of the world's oil supply passes through that very little narrow waterway. And right now, tankers are just there. They're all afraid to go through it. And in some cases, they've actually stopped entirely. So what happens is when supply is threatened, obviously oil prices move higher. So that's what markets are reacting to. Now, there are people out there, I'm just telling you this, that have warned us that if, if disruptions continue, oil could potentially reach $150 a barrel. It is not impossible that if they went and they bombed the oil fields and everything. Listen, we're dealing with Iran. And I always think you never know what's going to happen. So you can't just say, oh, the war will be over. And even if we pull back, we leave there, we stop bombing. That doesn't mean in one month from now they're not going to retaliate. So you always have to have something positioned in your portfolio in case something like this happens. Do you know Iraq has already cut, I think it was 1.5 million barrels per day. Kuwait has followed. So the oil market, I have to tell you may be facing a significant supply shock. Now, I know we may be releasing reserves and doing all this, but let's just see what happens. Now, I want you to know, though, I get it. I get you're writing me and you're saying, susie, I'm scared. War, shipping disruptions, oil surging. Maybe we should just stay out of the market completely. Do all of you feel that way? Do some of you feel that way? If I was going to answer that, I don't know what Fitz would say, but I'm sure he would answer it identical to what I'm going to say. The answer would be, say, no, you are not. Because markets have always moved through periods like this. The key to investing is not avoiding uncertainty. The key is understanding which each company benefits from. All right? So instead of asking yourself, should I be afraid about this? I want you to think about this. When interest rates rise, banks benefit. Right? When technology advances, tech companies benefit. Right? And when oil prices rise, energy producers benefit. So you just have to understand, where are we? What companies can benefit? And do you want those companies in your portfolio or those ETFs in your portfolio? Or do you not now put a pin in that for a second? Because if you are insecure, if it is scaring you, remember the goal of money is for you to be secure. Then, okay, you don't have to invest. But if you're just getting out because of this war that we're going through right now, I think you'll be making one of the biggest mistakes out there. Especially if you listen to last Sunday's podcast where Fitzy really did explain what happens after every war we have had. But I do want to go back to Keith Fitzgerald again. I call him Fitzs, his number one energy stock pick. Because when he says he has a number one pick, we need to listen to him. So I did my own research. Chevron is 147 year old and energy giant that is worth $379 billion. This is not some speculative oil company. This is one of the largest energy companies in the world. And through everything, Chevron has continued to do one thing that I think is very important to all of you when it comes to investing in a company like this. Chevron has raised its dividend for 39 consecutive years, which is why I don't have a problem with you investing in it on a dollar cost averaging basis, especially if a dividend is important to you. They raised that dividend through recessions every year, through oil crashes, through financial crises. The dividend kept growing. Today, Chevron pays roughly about $7.12 per share annually, which is a yield of about 3.8%. Now wait, I just have to say something. 3.8% is what many of you are making in a high yield money market account or a CD or a certificate, whatever it may be. So that is a great dividend yield, and that's at this price where it is right now at about $192 a share. Do you know that Chevron CFO that stated that growing the dividend remains the company's top financial priority? That is something that's important for all of you to understand, because if you buy a stock here and then the stock starts to go down because the oil price is going down, and if they don't have everything together, they're going to lower their dividend. So how secure is this dividend? Chevron has structured its business so it can cover its dividend and capital spending with oil at around $50 per barrel. So oil could drop from 88 where it is now, or 100 and some odd dollars where it was, or even if it goes to 150, which gives them lots of extra cash flow. If oil dropped all the way to $50 a barrel, they could still cover easily their dividend. Are you thinking about that? You should be thinking about that because I always want to know, do you have the money to pay me? So that's a really large cushion because all they need is $50 in oil and WTI to support its dividend. Now you heard me say a few seconds ago, hopefully you heard me say it on the podcast last Sunday, that you should dollar costs average into Fitzs picks, or really any pick if you ask me. Because the truth is we have no idea what will happen today, next month, next year. We don't know. Especially with the uncertainty around Iran. Nobody knows. Not me, not Keith, not Wall street, nobody. So you cannot simply say a stock is at its top. Instead, you build your position over time. And here's the beauty of Chevron, everybody. Chevron is going to pay you a dividend to wait. You are going to be earning income while you wait. And if tensions continue, if oil rises, guess what? Energy companies like Chevron are going to benefit. And again, but what if the stock goes down? Listen to me. If you're holding this stock for a while and your dollar cost averaging into it, you should be a wishing and and a praying that it goes down. What aggravates me more than anything is when you buy a stock and you only want it to go up, especially if you're dollar cost averaging into it, which you're all supposed to be doing. What is wrong with all of you? If it goes down, you get to buy more shares. If it goes down and it's paying a dividend, then the dividend yield on a lower priced stock means your yield is higher. Higher. Are you kidding me? So your dividend yield goes up. Are you feeling better about it? Are you understanding why you do something like this at times like this now is it too late? No. Didn't you hear Fitz say he would buy it here? Because anything can happen. But I understand that a lot of you also say but Susie, oil is out of favor. Everything is going to be electric. Why would we be buying an energy stock? We got to get something straight. Oil still provides about one third of the world's energy supply. Now I don't have to like oil. I don't have to like what it's doing to the world. But I do have to be knowledgeable about the role that oil energy plays in today's economy. It fuels aviation, it fuels global shipping, it fuels trucking and heavy industry. Do you know that There are about 100,000 commercial flights every single day worldwide? And these planes are not switching to batteries anytime soon. About 90% of global trade. I hope I have that right. Moves by ships powered largely by what? By petroleum fuels. So oil is also used. Everybody in plastics, in fertilizers, in medical supplies, in clothing, in electronics. And I'm sure there's more that I just can't think of right now. So even renewable infrastructure requires petroleum products. The transition to cleaner energy will take decades, which means can you just stop thinking oil is going away anytime soon? Companies producing oil remain essential whether you like it or not. All right. There's one more question that many of you have written into me. And you're asking me, Susie, does this mean everyone should run out and buy oil stocks today? And the answer to that is no. What it means is you should understand how the world works. That energy still powers the the global economy and companies producing it will continue to matter. But you have to decide do you still want it part of your portfolio? Do you not? You don't have to buy more than 5% of your portfolio in an energy stock. You don't have to put all your money in it. But if you want some part of your money in a dividend paying energy stock that fits has as his number one pick and all the reasons that I just gave you, you might want to consider Chevron on a dollar cost averaging basis. So I want you to just listen to me. The world may feel like it's at war, and truthfully, it is, whether we like it or not. The headlines may feel frightening. Markets may feel uncertain because they're going up, they're going down, they're going up, they're going down every day, depending on the news cycle. And what happens dictates if the markets are going up or down. But this is what I want you to remember. Energy still powers the world, okay? Planes still fly, ships still sail. Economies still run. And the companies that produce that energy, the ones that have survived decades of turmoil like Chevron, and still reward shareholders, often become stronger during times like this, when you understand how money really works, you stop reacting to the headlines. Then you have what it takes to start investing the correct way. Dollar cost averaging, having at least five or ten years till you need this money. If you're worried about down markets, you always want a stock that has a dividend, so it pays you to wait. And you go for it only when you feel secure and you know the moves to make. All right, everybody, now until Thursday when Ms. Travis joins us again with Ask KT and Susie Anything. There's only one thing I really want you to remember, and it's this. People first, then money, then things. And stop listening to arm chair pundits. Now you stay safe. Bye bye.
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We are strong, we are wise we will not apologize we are here we will thrive Together we will rise we're the little bit of faith and everything it takes we are strong, we are wise Together we will rise.
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Hi, everybody. Suzie O here. And I have to tell all of you, there is one benefit that I know all of you need and your corporations need to offer. And it comes from a company that I helped co found over 5 years ago by the name of Secure Save. So whether you're an employee or an employer, I want you to go to securesave.com Suzy S U Z E and take a look at what I have for you there. I promise you, you're gonna like it.
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All right, now, neither Suze Orman Media nor Suze Orman is acting as a certified financial planner advisor, a certified financial analyst, an economist, cpa, accountant or lawyer. Neither Suze Orman Media nor Suze Orman make any recommendations as to any specific securities or investments. All content contained in this podcast is for informational and general purposes only and does not constitute financial accounting or legal advice. You should consult your own tax, legal and financial advisors regarding your particular situation. Neither Suze Orman Media nor Suze Orman accepts any responsibility for any losses which may arise from accessing or reliance on information in this podcast and to the fullest extent permitted by law, we exclude all liability for loss damages, direct or indirect, arising from the use of this information. The must have documents discussed in this podcast are legal documents created by a lawyer and distributed by Hay House. Thanks for listening.