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This episode is brought to you by Progressive Insurance. You chose to hit play on this podcast today. Smart Choice make another smart choice with Autoquote Explorer to compare rates for multiple car insurance companies all at once. Try it@progressive.com Progressive Casualty Insurance Company and affiliates not available in all states or situations. Prices vary based on how you buy. Welcome to the Candy Valentino show, the podcast for founders, investors and entrepreneurs where we have honest conversations about what it takes to grow your business, build more wealth and create financial freedom.
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Hey guys, welcome back to another episode of the show. Thanks for tuning in with me today. And wow, what a week. If you are listening to this right when it drops, I'm actually recording it just a few hours before we publish it because I wanted to get all of the data points of what exactly happened in the market, in the economy, in investing world, so I can update you with everything because last week was one for the books. I did a podcast last Thursday. If you didn't listen to it, go back and listen to it. I talked all about where to park your money based off of the policies, the commitments and the administration, the transition team, kind of what is going on and how you can make more money. Regardless of how you feel the election went if your candidate won or didn't win, there is opportunity in every single area. And I was breaking down what opportunity to look for where to park your money so that you can make more of it. And I wanted to do a little bit deeper this week today for this episode because so much has happened. Holy cow. I mean, when we recap the week that ended November 8, we have seen the stock indexes recording their strongest week in 12 months, gains of 5 and 6%. The NASDAQ, the S P 500, the Dow all set record highs. And if that wasn't enough, the US Federal Reserve cut rates another quarter point and they cut rates back in September a half a point. So now that's three quarters of a point. We're obviously moving in the right direction. And I want to talk about how that works with mortgage rates because a lot of people are saying, hey, they just cut rates on Thursday. But I don't see mortgage rates dropping. So we'll break down how that works. We've also seen the meters and yes, they actually measure this and they gauge investors anxiety and expectations of the stock market volatility. And we have seen the anxiety gauge drop. At Friday's close, the index was down about 31% and was trading at the lowest level in more than three months. Months. And as that happened Consumer confidence started to increase. In fact, US Consumer sentiment rose to the highest level that we've seen in seven months, which has exceeded all economists expectations. And if that wasn't enough, Bitcoin is at an all time high. Just the beginning of 2024 it was at 42,000 and it set a record high at 77,000. Just under 77,000 this week. So that's the recap. And if you listen to last Thursday's episode, I talked about returns we could be expecting on certain sectors and certain stocks. So I want to recap what actually happened during the week. I recorded that podcast episode on Wednesday. We dropped it Thursday. So just I recorded it 24 hours after the election results and speculated what I thought was going to see the greatest increases. And sure enough, S&P 500 was one of them. Energy up 6.2%, financials up almost 6%. Industrial up 6%. Tech up 5 and a half percent. And real estate shot up 2 and a half percent. Which I want to, to talk about real estate because I did not talk about that on the last episode. So we're going to get into that and how that was a huge, huge lever for this election and what you can expect on the buyer and the seller and the investor side. Okay, so let's jump right into it. And I was going to actually keep the real estate stuff to the end, but I'm just, I'm in his own. So let's go ahead and talk about it because during Trump's last term. So this is what's so fascinating. And I dropped this on, I said this on last Thursday's episode. This is what's fascinating about this time is like we are not projecting or even speculating what we think a president is going to do. Not only did he flat out tell us what he was going to do and everybody in the transition team of his administration, what they're expected to do and what they're committing to, not only in policy, but in all of the interviews that they've been doing in media. But we also have the advantage of knowing what he did in four years from 2016 to 2020, enduring Trump's first term, especially after 2018, after the 2017 Trump tax cut and Jobs act, after that was implemented, 2018 rolls around and the Federal Reserve cut interest rates significantly. That's when we were during a time when we reached an all time low of 2.4%. So it was gradually getting cut, cut, cut from 2018 the whole way down to 2020, when Trump was still in office. At the time Trump lost the election in 2020, Federal Reserve rates were at 2.4%. This was a historic low, which obviously caused Mort to be super affordable and sprung not only home purchases, but the refinancing. The lower rates made borrowing cheaper, which created a higher demand for real estate, and it drove up home prices. So we can conclude that Trump is going to follow a similar economic approach. And obviously, this election was all about the economy. I mean, they literally called it the pocketbook election because that's the number one factor that people were paying attention to. So we can totally expect for them to want to stimulate economic growth by keeping interest rates, rates low to make mortgages affordable again. Now, here's the important thing to know. Between Trump's reelection and this very first Fed rate cut, there's a lot that is already happening that can really shape the housing market. Buying a home has really always been a cornerstone of the American dream, and it has become more and more out of reach for a lot of people, which is why this was one of the number one issues that voters said was important to them. That's why they called it the pocketbook election. It was the top issue, thinking of cost of living and the economy. Economy, and am I ever going to be able to afford a house? So two things we think are going to happen. One, he's going to continue to bring down mortgage rates, and second is he's going to deregulate, which is going to make it cheaper to build homes. When you slash inflation, the Fed cuts rates. When the Fed cuts rates, mortgage rates drop. Doesn't always happen instantaneously. But the second that the Federal Reserve is lending out money at a lower rate, that's when it's going to filter down to the bank. The bank is then going to lend it at a lower rate to you. And there was data that was already released this week from the national association of Realtors that suggests that the worst of the market may be over. Home prices are slowing and wages are starting to outpace them. Finally, and more and more inventory of new homes have already come on the market. We've already seen it in day. It's like insane. So housing affordability is obviously not fixed. It's still going to take some time. But the big picture here is that the President and his administration, whoever is in the White House, can absolutely make an impact on housing affordability, although it's a super complex issue. And the problems that we are facing right now are not something that can be solved really quickly. They are already starting to course correct like we are seeing in so many other sectors. And the current housing crisis that's been going on in this country, I think had a huge role in the election, far more than what analysts predicted. And we're seeing it here because we're seeing how people voted. Many of the counties across the country that dramatically swung towards Trump on Election Day were also America's toughest housing markets. So although obviously people were voting for him and for a variety of reasons, there were a few counties that were really hit hard, and those are where we saw the greatest percentage point of increase towards Trump, as opposed to 2016 and 2020. And we didn't just see this in traditional Republican counties, it was happening in Democratic counties, too, and specifically battleground states, which is why he swept all of the swing states, including Arizona, Georgia, North Carolina, Pennsylvania. Those are all also homes to dozens of these struggling markets. And when I looked at the Home Buyer Index, which I haven't seen in probably, I don't even know how many months, I just. I don't know. It's not something I look at all the time, but I was like, I wonder what this is reflecting in that. So there's the Home Buyer Index that tracks difficulties that potential home buyers are facing in, like, local housing markets across the US it's kind of interesting and it's something I've looked at before, but not something that I'm like, always looking at. But there's a scale, and it's nationwide. It goes from 0 to 100. And when I looked at this October, the national index was at very difficult, 80.6. But there were several counties in the country where the difficulty score was even higher, close to 90. And we have seen over time, since 2020, the median home price has risen almost 75% in the market. The inventory that's out there is averaging about a third of what it used to be. So if you find yourself with, you either have a house that you can't sell or you are looking to buy a home that you can't afford. Like, it is not just you, you are not alone. The environment out there is absolutely horrific. And obviously we can see that the narrative that Trump and his campaign pushed, that are you better off now or were you better off four years ago, really resonated with the American people. And for my investor friends out there, this is something that we don't obviously have any data on yet, but there is a lot of spec saying that the opportunity zones that were introduced and created through Congress with Trump's Tax Cuts and jobs act of 2017, which allows companies or individual investors like us to invest in designated low income areas in the US in exchange for tax benefits. And they are really great tax benefits such as deferring capital gains taxes. There is some speculation that this may be continuing or revised or renewed in some way, which would be amazing. Amazing. And if you have no idea what I'm talking about with Opportunity zones, I think I talked about it like years ago. Opportunity zones is something that was created with that tax cuts and jobs Acts of 2017. And the purpose of it was to boost economic growth and job creation in low income communities and provide tax benefits for the investors that buy these distressed properties and fix them up. And if you've never looked into this or you've never heard about this before, it's something that if you are a real estate investor, you might want to look into. You can go to opportunityzones hud gov to find out if your state has these territories, these opportunity zones in your area. For the most part, I mean, you're not going to find an opportunity zone and say Manhattan, but there's a lot of opportunity zones in smaller cities and towns outside of different suburbs or different cities that there may be buildings that you can purchase. And I mean everything to do with this, when you're growing your money inside of that property, when you go to sell that property, you're able to defer taxes, depending on all of the specifics, you can defer taxes up to 10 years for your cap gains. I, I mean there's so many great things and these were scheduled to expire with all of the other tax cuts and job acts, deductions and regulations in 2025. But now we can probably deduce that Trump is going to do something to extend them or create something new that is like it. And I don't want to get into the weeds of how you invest in an opportunity zone, meaning through a qualified opportunity fund, because we don't know what's going to happen with them. But I can promise you this, if I get any information that this is definitely something that they are going to extend or reimagine in some way, I will make sure to break it all down on the show. I just don't want to do that yet. In case nothing happens or it's a year from now, there's no sense giving you information that you can't use right now. So that brings me into the second part of the show. What makes a leader? It's a tough question, but one thing's for sure, a true leader leads by example and a true leader takes risks too. 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Episode is brought to you by Progressive Insurance. Do you ever find yourself playing the budgeting game? Well, with the Name youe Price tool from Progressive, you can find options that fit your budget and potentially lower your bills. Try it@progressive.com Progressive Casualty Insurance Company and affiliates Price and coverage match Limited by state law not available in all states. This episode is brought to you by Global X. Since 2008, Global X ETFs has been committed to empowering investors with unexplored intelligence solutions. Global X specializes in exchange traded funds that offer exposure to the artificial intelligence ecosystem including themes like like data centers, robotics, semiconductors and cloud computing. To learn more about Global X's entire suite of ETFs from covered calls, fixed income, emerging markets and more, visit globalxetfs.com.
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So just a few days ago we hosted one of our founders member retreats. So we have these retreats five to six times a year across the country. Sometimes out of the country like Cabo and Puerto Rico, but we host these events. They're two days in depth depth business solving critical problems in people's businesses, figuring out their growth track if they're looking to scale. We also weave in investing and money and all of that. So at this one, just these past week that we were talking about, obviously I went into a deep dive on what the projections are looking like for different stocks, sectors, markets now that we know that Trump is in office. Pretty much based off of the podcast episode that I dropped for all of you last week on Thursday, but just a deeper, more involved session on it and somebody had a great question like okay, so now I know know what to buy and I know what to pay attention to, but I don't even really know where to get started, right? And they were kind of going through some of the investments. Like their spouse had a 401k that they were maxing out and doing that first. Right. Which is always what I recommend. If somebody has a job or W2, somebody is getting free money from a company, don't ever step over 100 bills laying on the ground. Pick them up. So if someone's doing 3% match, invest 3% so that you get that, that is obviously one thing you always want to do. And she said, beyond that, you know, for my business, what should I be investing in? I have some. This real estate. I have this real estate, you know, and we kind of just took a look, step by step, at her portfolio, where she was putting money, what assets she currently had, what interest rates were on those assets. One was sitting there free and clear. One had a 7.2% interest rate. And so there was. We walked through this whole thing, and I thought, wow, this could actually be really great to do on the show and talk about some of the specifics. So in case you're in this position, number one, you know how. How to make better investing decisions. But then two, if you've got all this information and you just don't know where to start, I'm actually going to walk you through how to pick an investment account. You know, the difference between stocks and funds, mutual funds, and individual stocks and ETFs, so that you can really decide. Like, I don't want you to just get information from this show. Like, I do not do a podcast to just get more information out in the world. I give it to you so that you can really understand how to use the information, to really implement it, to make it simple and easy to understand. So that's what I want to do. I want to talk about how to set a budget for investing. I want to talk about the difference between stock and funds, how to pick an investment account, if you're going to choose a broker, if you're going to DIY it yourself so that you can take last Thursday's episode and really start to implement those strategies. Every single thing I own is through the roof right now. Like, my portfolio income is soaring. And I want you guys to have that same opportunity, regardless if you're investing 5%, 15%, or 50% of your money, making sure that you get the information and then you implement it. So let's get into this. All right? How to make more money with your money in just six steps. So, number one, do you want to invest on your own, and do you Want to figure all of this out and do your research or do you want some help? And the reason this is important is let's say you have a hundred thousand dollars to invest or $10,000 to invest. If you were going to put an addition on your home, or you were going to redo your kitchen, or you were going to buy a real estate property, would you just hand someone 10,000, 100,000, a million doll and just say, oh, here you go, I don't want to think about it, just invest it. You wouldn't do that if it was a house or an addition. Just say, okay contractor, just build whatever you want, here's my check. But that's really what people do with investing and it's because we're so busy and distracted and I get it. But you really want to be involved in investing. You don't want to leave somebody else. Your investments, your bottom line, no one will care about that more than you, nor should they. So making sure that if you are going to use someone that you don't just hand a check and hope for the best, you want to get in to understand the process. And it doesn't have to be nerve wracking. But a lot of people spend more time figuring out what car they want to buy, where they want to go on vacation or what purse they want to take more than they pay attention to what type of stocks, investments or mutual funds that they actually have. So you really want to start first and foremost by knowing do you want to invest in your own or do you want some help? That's step one. Once you get there, then it's are you going to choose a broken broker or a robo advisor? That's number two. If you're going to invest on your own, you'll just need to decide what brokerage account that you want to open. Fidelity Robinhood, right. There's all kinds. E Trade. JP Morgan Chase has a self directed ira which is my favorite, but there are a ton others. You can go to nerdwallet.com and pull up best online brokers for a full list. And if you don't totally want to do it on your own, you can get a robo advisor. There's a lot of pros and cons to this. Some have very low fees, some will let you talk to an advisor for pretty cheap. Most on average charge about a quarter of a percent on whatever account balance that you have. Or you can have your money managed with a fiduciary. These are people or even an organization that will act on your behalf that are required by their license, by law, to put the client's interests ahead of their own. So this is there giving you the good faith and trust and to operate legally and ethically to operate in your best interests, as opposed to someone who is just selling you shares of stock. They're getting paid on it. And it really doesn't matter if your money grows or if you lose money because they're getting paid either way. Fiduciary advisors are fee only, so they only get paid by fees from the clients rather than these potential conflicts of interest by receiving sales commissions from these big financial companies. When I'm giving advice at an event like I was in this case or on this podcast, I operate as a fiduciary with experience who is advising you on the best way to proceed and acting on your behalf with your best interest. Because I am not compensated whether you invest in any of these things I told you about, I am just sharing what I believe is in your best interest. But as always, none of this is financial advice. Now, once you decide how you want to invest, if you want to use a broker or not, next you want to decide what type of investment accounts are available to you. Are you eligible for a Roth ira? Depending on your income, obviously that has significant tax benefits, benefits depending on your business structure and how many employees you have. If you're an entrepreneur, maybe a SEP, maybe a 401K, right? There's different offers, and that's something that you're going to want to figure out. The next is do you want to invest in stocks or in funds? And I find this is the number one place people get stuck. Because if you have a really great tax strategist and you work with anyone, a fiduciary or even a financial planner, you can pretty much figure out in one conversation what type of investment vehicle would make most sense for your income. And if you have a business, your business structure, I feel like most people fall off on this number four, which is do you get individual stocks or do you get funds? Are you bonds? Are you ETFs? So let's break that into just a couple points to make it really easy. So mutual funds, this is basically little tiny pieces of a bunch of different stocks in one transaction. Index funds or ETFs. Exchange traded funds are kind of like a mutual fund, but it tracks an index. For example, one of my favorite I always share on the show is my personal is the S&P 500 fund. Because this is basically like owning stock of all of the S&P 500 companies. And when we did all of the research for my first book, Wealth Habits, we found that the S&P 500 actually outperforms just about anything to the tune of about 17%. So when you invest in a fund, you're also investing into little tiny pieces of each of these companies. And then when you put together several funds or several stocks, that's how you build a diversified portfolio. Now, individual stock is much like you hearing something or you understanding the way that the market is shifting and you want to get a little better return by going into one individual stock, understanding that they will have ups and downs, but you want to make sure that you research that company and get a clear understanding of it so that as those ebbs and flows come that you aren't trying to just pull your money at every little dip down. Most people think mutual funds are great because they're diversified. Personally, if you're going to diversify, you can do an ETF or an index. But there's a lot of people that just really love mutual funds for retirement. Individual stocks, just so that we look at little pros and cons, have the ability, probably have a little bit of a higher payoff. Mutual funds are unlikely to have that significant rise. But for those people who don't really want to do a lot of research, a mutual fund may be a good place because it's just basically creating that diversified portfolio with one thing as opposed to going and finding 8 to 10 non correlated assets. Now next step 5 is what's your budget? How much money can you start investing? And I don't mean next month, next year, I mean right now. Like if you are not actively putting in money, if you're not actively investing every single week, every single month, you are losing money. So if you're not at least investing 10% right now, you can deploy my 10, 10, 10. I'm sure I talked about it on the show. It's in one of the books. I think it's in Wealth Habits. It might actually be in both the books, but it's basically 10%. 10%. 10%. How do you increase your income 10%? How? Decrease your expenses 10% so you can bridge the gap and start investing 10%. Now, if you are not investing 10% now, you are robbing from your future because that money is something that you should be setting and forgetting and doing it. And you always want to get up to at least 20%. I know that's really hard for a lot of people right now with the way the economy is and A lot of businesses and industries are right now, but you're going to get there. The important thing is what you do with a little bit will dictate what you do with a lot. Because money and investing is a behavior. And if you adopted the investor mindset, the investor behavior, and you're still operating as a consumer and you're not even investing that little bit. Now we know through the data that you won't invest when you have a lot. So it's really important to start right now. And number six, like everything in life, you have to trade at short term, instant gratification on long term. Focus investing is proven to be one of the best ways to grow long term wealth. When you invest several decades later, the average stock return is anywhere from 10 to 12% a year. However, that's just the average. Some years are going to be up, some years are going to be down. But for long term investors, we're playing the long game and that's what wealth building is all about. So start investing now and if you already are, start investing more, get it on automatic. Start playing that long game and avoid the habit that so many investors have, which is compulsively checking on your stocks. You know, when you're playing the long game, you're going to have some up days, some down days, some up months, some down months. Making sure that you are setting it and forgetting it is the most important part. Warren Buffett has famously said that S&P 500 ETF is the best investment most Americans can make. And choosing individual stocks if you believe that there is a potential for that company to have long term growth. But the bottom line is it's really just a matter of figuring out which investment approach you want to take, what account makes most sense for you, and making sure that you are putting money consistently, consistently in that investment account so that you are funding your future. And because we talked about real estate at the beginning of this episode, I also want to touch on REITs. You know, that could be another great investment opportunity with this administration because of the deregulation and favorable tax policies that are coming. Real estate REITs, which is a real estate investment trust, typically becomes more attractive in this type of economy that is going to be coming. So that's another thing to look into potentially investing in. Okay guys, thanks so much for tuning in and spending this with me today. If you love this episode, share it with somebody that will find value in it. And if you want more information just like this delivered every week to your inbox absolutely free, go to candivalentino.com newsletter where we send real topics just like this and more news that you need to know right to your inbox. No junk and it's absolutely free. Candivalentino.com Newsletter thanks again for tuning in with me today. We'll see you next time. Hey guys, thanks for tuning in to this episode and if there was something that you loved or you had a specific takeaway, share it and tag me at Candy Valentino. And if you haven't already, grab a copy of my latest book, the 9% Edge Life Changing Secrets to create more revenue for your business and more freedom for yourself. You can pick it up anywhere books are sold, Amazon, Barnes and Noble or your local independent store. And once you do, head over to 9% edge dot and claim $1500 in pre order bonuses, including a chance to join me on this very show. Thanks so much for tuning in and spending this time with me today guys. We'll see you next time.
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Former Navy SEAL Sean Ryan shares real stories from real people from all walks of life on the Shawn Ryan Show. Former US Navy Admiral Tim Gallaudet how did you get involved in this whole UFO thing? One day I get this email on the Navy Secret work. If any of you know what these are, tell me ASAP. F18 pilots captured video of this UAP zorching over the water. Just a little round sphere and so I knew right there that was something not ours. The Sean ryan Show on YouTube or wherever you listen.