Investing, Podcast, Stock Market, Stocks
June 26, 2022
Listen to Podcast Episode:
Suze starts this episode with an update on what’s happening with oil stocks, BitCoin, gold, inflation and tech stocks.
Music: (MUSIC IN)
Suze: June 26, 2022. Welcome everybody to the Women & Money podcast and everyone else smart enough to listen.
Suze: Have to tell you,
Suze: I just love that subtitle
Suze: And everyone else smart enough to listen.
Suze: Well, are you feeling better?
Suze: Did Friday give you some hope that these markets are going to turn around and you're all going to get all your money back?
Suze: The Dow Jones increased 823 points.
Suze: The NASDAQ 375 points. It's all about 2.5%.
Suze: That is a nice move.
Suze: So you must be feeling better, right?
Suze: Okay. But in my personal opinion, don't feel good for too long. Because the overarching momentum of this market, in my opinion, is still for the intermediate term, for the long term, it has a downward bias which means
Suze: it is more apt
Suze: to go down than to go all the way back up again.
Suze: So if you're feeling better
Suze: when the markets are up like this, you have to look at your situation and you have to say, okay,
Suze: do I need to sell right now? Do I need to take some of this money off of the table because I really need it?
Suze: I need it because I'm falling short of my bills, inflation is getting to me. I need it. Whatever you may need it for. Maybe even you need it for your peace of mind.
Suze: if you don't need it,
Suze: then what will continue to happen in my opinion again, is that it will go up and you'll feel really good when it's going up, and if it happens to go back down again, you'll start to feel depressed. But the most important thing you must continue to do
Suze: is to dollar cost average
Suze: no matter what. Remember to choose your days to dollar cost average, and if you don't know what dollar cost averaging is, it's simply where
Suze: if you need to invest in the stock market because you're in your 401k, or you're contributing to an IRA account or whatever it may be. And if you have the choice of when you can contribute and have that money be invested,
Suze: just try to choose days when the markets are down.
Suze: There were certain things that I wanted to buy on Friday,
Suze: but Friday is not the day when the market is up 800 some odd points to be buying something.
Suze: I need to stay disciplined
Suze: and wait till the market comes back down to buy what it is that I may want to buy.
Suze: And if it continues up, so what? So I missed what I wanted to buy, but my other stocks then are doing better.
Suze: So you just need patience.
Suze: Now with that said, these markets will come up. These markets may go down. These markets may go back up again, but hopefully around September or October of this year, we will definitely have more of a direction for this market.
Suze: People seem to be so emotional these days.
Suze: They're upset, they don't understand certain things. Why is gas so high, why is food so high? And it's getting to them.
Suze: And when people are emotional,
Suze: they sell at the wrong time, and they buy at the wrong time. So I'm asking all of you
Suze: to not be emotional about this. You're all writing me at firstname.lastname@example.org
Suze: and saying, I've had it. I can't take it anymore. Well when you've had it and you can't take it anymore, that is a great sign.
Suze: Because that's what we need. A whole lot of people to feel like so that they all sell at once, drive these markets down a little bit more,
Suze: and then it will hopefully be over.
Suze: But only time will tell, because we need to see what is going to happen with the increase of interest rates
Suze: by the Feds. Is recession going to happen? Is it not? There's a lot of things in store for us that we can't quite see.
Suze: We can't even pull back the curtain Dorothy. We can't do it! Because we don't even know where that curtain happens to be because there are so many of them.
Suze: So again if you have time on your side, you have at least 5, 10, 15, 20 years or longer.
Suze: How many times have you heard me say that?
Suze: It kind of feels like a song that I say 5, 10, 15, 20 years or longer. But anyway.
Suze: Then just continue to dollar cost average in good quality, no load mutual funds, ETFs, individual stocks, as long as you know you are diversified.
Suze: Now while you may be feeling better about certain things, I’m not.
Suze: Because I'm going to tell you oil is really concerning me.
Suze: And I told you all last Sunday
Suze: I felt like oil had a target on its back, and I feel like it's being being hit. Who's ever firing at it? Oh they are hitting it.
Suze: And even on days like this, when oil goes up, the price of oil itself goes up, the oil stocks are not going up.
Suze: All these oil executives went to the White House last week, who knows what they discussed? They didn't discuss.
Suze: I'm still totally confused because this is not normal.
Suze: We still do not have enough supply
Suze: for the demand. Again, China will open up soon here. So oil should be going up, the stock should be going up,
Suze: but that's not happening for whatever reason.
Suze: So those of you, once again in Devon, XLE, Pioneer, all of those stocks, you have to look at your situation, and you may decide, you know what I'm still up considerably from where I bought it. I'm out. That's it. I've had it. I don't want to lose
Suze: my profits.
Suze: You know, you never ever, ever, go broke by taking a profit.
Suze: And you never ever get really broke
Suze: by cutting your losses short when something isn't working.
Suze: So all of you have to decide on your own, are these stocks working for you, or are they not?
Suze: Half the analysts out there say you have to buy oil, this is the time to buy it. They're down. These stocks are fabulous. The other half are saying get out of oil totally.
Suze: Maybe you sell half.
Suze: Maybe you play it safe that way.
Suze: Alright so, that's enough on oil for here. Bitcoin. I just really want to say please be careful here everybody.
Suze: Bitcoin last weekend broke its support level. Big time.
Suze: Its support level was 23,200 if you remember me talking about that.
Suze: And a support level
Suze: is when a stock or an investment hits a level that every time it hits it, it goes down and it hits it,
Suze: it's supported by that level and it bounces back up again.
Suze: If it breaks its support level,
Suze: then that stock or investment can go down
Suze: even further. So it's never a good sign when a stock
Suze: breaks its support level.
Suze: XLE. had a support level of 77
Suze: and it broke it last week.
Suze: So that is a big concern, I have to tell you.
Suze: So we'll just see what it does. But remember, a lot of you bought XLE back in the thirties, it will not kill you to take a profit at this point in time.
Suze: Again just don't be miserable if it goes all the way back up again, and then you're saying to yourself, I wish I had held on to it. Look how much money I could have made.
Suze: Or you could say, thank God I sold it because look at what happened to it and I lost all the money that I had made.
Suze: Again, something for you to think about. So Bitcoin broke its support level, went down to 17,000 something, now it's back up in the 20,000 area. 21, 22. It's fluctuating all over there. Very easily it could go to 24,000, 28,000. It could go up.
Suze: But it is projected to go back down to
Suze: Some time here in the very near future.
Suze: So I would be very careful if I were you, that if you are getting involved with Bitcoin,
Suze: that again, you do it on a dollar cost averaging basis. Do not put a lump sum in, and just go okay, I'm going to do it. But Bitcoin could absolutely go down
Suze: considerably before it goes up.
Suze: Now on the Women & Money app, I give little updates as to what's happening with Bitcoin, or sometimes oil, or things like that. You might want to register for that app. It's absolutely free. Because sometimes I could even say to you no sell. You need to sell this today. I don't like what's happened. Because, I can't do a podcast every day.
Suze: So you might want to download that app
Suze: because then you get a little ding when I've put something on my wall.
Suze: Same thing with gold.
Suze: Gold is not acting the way that it should be acting right now.
Suze: But we're going to have to see what happens if we go into recession. Many of you write me and you asked me, Suze, how would you buy gold if you were going to buy gold?
Suze: So I am invested nicely in gold, but it's in private mines, so you can't really invest the way that I do I don't think.
Suze: I would be buying Barrick gold. The symbol is G-O-L-D, because it pays about a 2% dividend.
Suze: and we'll just see what happens. Again, gold could absolutely go down, before it hopefully turns around and goes back up, but if you want to have gold in your portfolio, again, be very, very careful. Dollar cost average into it. And just know
Suze: that it will probably go down before it goes up. Bonds.
Suze: I said to you before, if you're in bonds just stay put in them for now.
Suze: And I'm mainly referring to bond funds because if you're in individual bonds of course you're going to stay put in them, because you're not bond traders.
Suze: So a week or two ago, I was saying to all of you maybe even longer than that, buy US Treasury notes. Buy a two year, buy a five year. They’re at 3.3%, 3.4% briefly.
Suze: And I'll never forget. Somebody wrote in and they said to me, Suze.
Suze: I've been buying them at 3.3%, which is a great yield by the way everybody.
Suze: And I think I need to wait till it goes to 3.4. And I said okay, if you want to. And now yields have come back down again,
Suze: so you can't get 3.3 right now. But yields seem to be going down a little bit,
Suze: and that means people are buying them rather than selling them. Still a great return on your money, but if you're in bond funds at this point in time, I do think that interest rates will settle in here sometime soon.
Suze: And even if it's a few months, eventually, hopefully, you'll be okay if interest rates start to come down. We'll see if that ever happens, but let's just hope it does.
Suze: Real estate. Real estate is holding up quite nicely.
Suze: Prices came out just again the other day last week on Friday and in many places, real estate prices were up 14%.
Suze: So real estate, even though maybe sales are slowing down, and there isn't really a rush to buy something, and things are on the market for longer,
Suze: you know, I still don't think it's a bad idea. If you want to buy a home that you can call your own. I do not think this is the type of markets that you should be flipping real estate at this point in time. But if you want a home that you can call your own, and you don't want to put up with the lack of rental properties,
Suze: because you know rental properties now, it's really going crazy out there.
Suze: In many places when you now go to rent something,
Suze: they have an open house for a rental.
Suze: Like an open house to buy a house, they are now having open houses to rent.
Suze: There's lines out the door waiting for people to
Suze: go in and see what the place looks like,
Suze: the agent is saying, alright, this apartment rents for $2,000 a month, but you are more than happy to bid higher than that $2,000 a month and then we'll let you know who gets it.
Suze: So somebody
Suze: Went to one of these, they bid $2,200 a month. They thought oh, I better bid up a little bit. And they didn't get it because somebody bid all the way up to $3,000.
Suze: So, rentals are still something that are very expensive and hard to come by. So if you want to own your own home, and you have the money to do so,
Suze: don't let 5.5 or 6% mortgage rates scare you away
Suze: it's not such a bad interest rate. A few years ago, everybody was thrilled to have 6%.
Suze: So if the numbers work for you, you want to own a home, you want to get out of the rental racket, because it seems like it's a real racket right now,
Suze: All right. But do me a favor, buy a home that you need. Don't buy your dream home right now.
Suze: Now is the time to buy down rather than buying up.
Suze: If interest rates were at 2, 2.5%, I would say to you, alright, buy up.
Suze: But that's not where we are. And we're also in a place where we're heading possibly towards a recession.
Suze: So are you gonna keep your job? Are there gonna be layoffs? What's going to happen? Are customers gonna stop coming into your business?
Suze: Things that you need to think about, and prices are still going up
Suze: somewhat. Not everywhere, but with oil and food, there's still kind of toppy here.
Suze: Just take that into consideration
Suze: in terms of inflation everybody.
Suze: There are certain commodities that are starting to go down
Suze: and those are things like plastic and aluminum and materials
Suze: are starting to go down and that is a good sign.
Suze: We still have to wait to see again while oil and food go down, which are the two things that really are affecting everybody.
Suze: But it may be
Suze: that inflation has kind of topped out here, or very very close to topping out.
Suze: So we'll have to see what happens on July 13th, when the new CPI numbers come out.
Suze: But we'll just keep our fingers crossed that we're at the top end of inflation,
Suze: and they're going to start to come down.
Suze: Technology stocks such as Apple, Amazon, Google,
Suze: have started to go again.
Suze: So those are fabulous stocks, they always have been, they always will be. Nice stocks to have as a core of your portfolio.
Suze: But remember, if you're going to buy them,
Suze: dollar cost average into them, small amounts of money, let's see what happens. Buy when the markets are down, not when the markets are up, and we'll go from there.
Suze: one last thing. If we do end up in recession,
Suze: which it seems like we're getting closer and closer to having a recession,
Suze: then what's interesting is then staples will come back into favor. So let's just see what comes back into favor, and how these stocks, and ETFs, and mutual funds do over the long run.
Suze: What's really hard is
Suze: that most of you are watching everything every day,
Suze: and you are getting really freaked out. It goes down, it goes up, it goes down, it goes up.
Suze: Either you like what you're invested in, either it makes sense, either you don't care that it goes down because it's paying you like a 9.28% dividend right now which is what Devon is paying, or 13% which is what Pioneer's paying. So either you like the dividends,
Suze: you feel that they're solid,
Suze: you want to keep that,
Suze: or you go, you know what, I've made money. I've had it. I'm out.
Suze: There's nothing wrong with either of those things. You just have to know. But again, it's really important
Suze: that you understand that you don't sell something just because it's down.
Suze: It could be out of favor. Like staples came out of favor. Don't ask me how. But they did. They could very easily go right back up in case of a recession, oil could very easily go right back up.
Suze: Depending on what happens.
Suze: Anything can happen at any time, which is why you always want to dollar cost average.
Suze: So those are some of the things that I know you wanted to hear.
Suze: But there's other things that I want you to hear as well because I've just spent this past week or two reading a lot of your emails
Suze: and I have to say they've made me very, very sad.
Suze: And the reason that they've made me sad
Suze: is so many of you have lost your spouse recently.
Suze: You know, maybe you lost your spouse last month,
Suze: four months ago,
Suze: a year ago
Suze: and you're in mourning and you really don't know what to do. And these are all spouses that are women
Suze: who have lost their male spouse and it's been traumatic for all of you
Suze: and you write me these heart felt emails
Suze: and all you talk to me about
Suze: are your kids.
Suze: Making sure that your kids are okay. Suze, I want to make sure that I funded their 529 plan. Suze, my kids are going to get $5,000 a month from Social Security. And I feel that that's their money and I want to put it away for them.
Suze: Suze, you know, what can I do to make sure that my kids are set? Can I open up retirement accounts for them? What can I do for them?
Suze: And throughout these entire emails,
Suze: none of you of the ones I've read
Suze: are saying to me, Suze,
Suze: I'm worried about myself.
Suze: I'm worried about I haven't worked in a while now and I don't know what to do.
Suze: Suze, my spouse left me all these bond funds, and all of these things, and I don't know what they are, and what should I do about it?
Suze: I'm afraid Suze.
Suze: What can I do for my kids? Suze, what can I do for my kids, Suze? What can I do for my kids? And you are nowhere to be found within there.
Suze: You don't talk to me about the benefits that you could get from social security. You don't talk to me about what you should do about an inherited retirement account, and how should you take that. Because those rules are very complicated. And in fact
Suze: I think I'll probably do a Suze School maybe next week on inherited IRAs
Suze: Because it's really important that you understand how they work.
Suze: But you're not asking me about any of the things
Suze: to secure your own future.
Suze: And 00:22:04
Suze: and that makes me sad.
Suze: And it brings me back 00:22:08
Suze: to the one saying that I always signed off
Suze: on the Suze Orman show with,
Suze: which is people first, then money, then things.
Suze: But whenever I said people first
Suze: I meant you.
Suze: And I really was talking to the women that were watching me on that show
Suze: in my own way. I was saying to all of you
Suze: you have got to take care of yourself before you take care of anybody else.
Suze: Now it broke my heart again
Suze: that I read an email from a woman
Suze: who said Suze, I need help.
Suze: My daughter is going to school in New York
Suze: and it's costing $100,000 a year.
Suze: And I saved $100,000 for the first year,
Suze: but I don't have another $300,000 for the next three years.
Suze: She only qualifies for a $6,000 loan.
Suze: I would have to take out a loan for all of that money,
Suze: and I'm afraid Suze, I don't know what to do.
Suze: Can you help me?
Suze: And again, that makes me sad, because we have a mother, a single mother
Suze: who saved $100,000, and her daughter is going to a school that's $100,000 a year. I wrote her back and I said I don't know of any education in my opinion
Suze: that's worth a $400,000 debt.
Suze: Maybe if you're going to be a brain surgeon, or a doctor, or whatever it may be.
Suze: But $100,000 a year?
Suze: Mama, you gotta think about yourself first.
Suze: You got to think about
Suze: how are you going to do this?
Suze: You need to sit down with your family everybody, and tell everybody what you need mama. 00:24:18
Suze: What you need woman.
Suze: To your friends, to everybody.
Suze: And stop putting yourself on the back burner.
Suze: Because there's gonna come a day, and I promise you,
Suze: where you are going to say,
Suze: why didn't I listen to Suze?
Suze: Why was I so afraid to tell everybody the truth
Suze: about my situation? 00:24:44
Suze: Why is it that my kids can't understand that mommy's doing the best she can do?
Suze: What are we going to do?
Suze: Why can't she understand that?
Suze: Now, the reason that I'm focusing this on women,
Suze: is that normally in most situations men have no problem saying, you ain't going to a school for $100,00.
Suze: Not gonna happen on my watch.
Suze: Every once in a while
Suze: I've come across a man who has said, yeah, I'm gonna get into serious debt because my kids and they go on about their kids because they're so proud.
Suze: But most intelligent men
Suze: don't do that.
Suze: They say we can't afford that. We're not doing that.
Suze: Women on the other hand, especially single mothers,
Suze: feel so guilty in my opinion for some reason,
Suze: that they just don't stand up,
Suze: or have the courage to say what's true for them.
Suze: To think about themselves before they think about their kids.
Suze: But if you could take care of yourself,
Suze: your kids are never going to be in a situation where they feel guilty that you took care of them before you took care of yourself and now they're going to need to take care of you.
Suze: I wanted to say that
Suze: because that made me really sad.
Suze: Other events of last week made me seriously sad.
Suze: To see Roe versus Wade being
Suze: overturned. 00:26:26
Suze: Are we all kidding?
Suze: Is that even possible? 00:26:30
Suze: Is that even possible that that happened?
Suze: Is it even possible that in New York,
Suze: the Supreme Court overturned the law where you couldn't carry concealed weapons and now you can.
Suze: Like really everybody?
Suze: So we're at a time in life
Suze: where at a time in life where other people
Suze: should not be able to make decisions for you.
Suze: Other people should not be able to be in control of what you can and cannot do.
Suze: Other people
Suze: should be doing whatever they can to make sure that our children in schools are protected. 00:27:14
Suze: That we are protected when we walk into a grocery store.
Suze: That we feel strong, safe and secure. Not just with our money, but with our lives as well.
Suze: what are we going to do about that?
Suze: How do we do that? Everybody,
Suze: one way to start is by taking control of your own life.
Suze: Taking control of your own money,
Suze: taking control of your own future.
Suze: So that you don't have to ask for help. So you don't have to be dependent on others. So that you can be
Suze: the strong,
Suze: vital, courageous
Suze: people that you were all born to be.
Suze: So until
Suze: Thursday, when Miss Travis joins us again on Ask KT and Suze Anything,
Suze: really. This is the time for you to take these words very, very seriously.
Suze: I want you all to stay safe,
Suze: strong, and secure. See you Thursday everybody. Bye bye.
Music: (MUSIC OUT)
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