Buyer Beware: Wall Street Products That Get ̶B̶o̶u̶g̶h̶t̶ SOLD, Ep #92

2022-08-03

What's up! It's episode 92 of Payne Points of Wealth and markets have finally rallied! Economic data, well… still not great. Earnings…not bad. But pay attention because the forward-looking markets are telling you about the future. We're going to explain why the market went up even in the light of huge inflation and geopolitical issues. Today on the Tipping Point, we're going to talk about what Wall Street loves to sell you, the products, and the schemes that you need to avoid to make sure you're on your path to financial ind...

You will want to hear this episode if you are interested in...

Embrace the gloom [1:05]
You can’t be all or none [3:58]
Never a bad time to be in the market [7:00]
The Tipping Point [10:47]
Question to ask yourself if the yield sounds too good to be true [12:32]
The 2 out of 3 rule
Hidden Facts of Finance [18:06]

There is NEVER a bad time to be in the market!

Jerome Powell has done a great job. As we've said, week after week, he's had his foot on the break, not trying to kill the economy just trying to slow it down. Not every company came out with spectacular earnings, even though 70% of the companies that have reported have shown positive on their earnings. But remember they're ratcheting those earnings down a little bit since we've had all these negative headwinds to contend with.

We can't declare victory just yet, we still have inflation and a FED that's behind a curve. There is a chance that rates could go higher. That's why you have to be an investor and you have to make moves in this market. You can't be all or none because if you're sitting on the sidelines right now and you got out of the market, even if you just got out in January, you're wondering now what do I do as you're still making nothing on your cash!

This week on the tipping point: Preposterous Products

In our collective 75 years in the financial services industry at our firm PCM, we analyzed close to like 50 portfolios a month. We know what everyone is doing out there and we find it shocking that in our industry a lot of the products that are sold are great for the firm that sold them and great for the commission to the broker that sold them but they're not necessarily the best place for you to put your money. There is a lot of buyer beware action out there. Here are a few of the top products to look out for:

Anything with a fancy, shiny sales brochure or proposal. If it’s got really great graphics and high falutin terms while making promises of fantastic returns there is probably a trap in the fine print.
Another investment that gets sold, not bought, on Wall Street are insurance products like annuities. They give you a guaranteed income for life, protect your principle, and all this stuff sounds really good. Ask about the return over the last 10 years and see if you get a real answer.

Check out the episode to hear us explain why!

This week’s hidden facts of finance

More than half of generation Z adults between 18 and 25 are already investors with 26% invested in individual stocks. This would make them more financially active than any previous generation at their age.
Bill Gates, the largest private owner of US farmland, said on social media that he is going to be investing in more farmland. Microsoft to micro-greens and it's reported that he's making almost 700 million a year on the rents on these farms.
Median home prices in the US went from $275,000 to $400,000 in three years. That's more than a 15% compounded annual growth rate in just three years.
New York rents set records last quarter. In much of Manhattan and Brooklyn median asking prices jumped 40% or more from 2021. In Manhattan, the biggest rise was in the area covering Soho, Little Italy, and Nolita. The median rent is up 51% at $4,825. It's painful here in the village.

Resources & People Mentioned

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