THE DISCONNECT BETWEEN REAL LIFE AND THE STOCK MARKET City streets across America are full of homeless people and their tents, cardboard boxes, and used syringes. People are lining up for COVID-19 tests or free food. Yet the stock market continues to advance. What's going on? And what will Tom do next?
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MONEY IN THESE HARDER TIMES Find out what's happening to America's credit card debt during this period of furloughs, layoffs and unemployment. Also, more bad things are happening to Robinhood users. And, remember Tony from Edmonton, Alberta, Canada? He had written Tom following an episode that had inspired him. Hear all about what happened next!
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WHAT"S TOM DOING NEXT WITH HIS INVESTMENTS? New COVID-19 cases and deaths have spiked ever since states have begun campaigns to "reopen" their economies. What does this mean for your IRA? Your 401(k)? And any other investments? Find out what Tom JUST DID.
Got questions? Don't agree? Write Tom now: firstname.lastname@example.org.
YOUNG ROBINHOOD TRADER KILLS HIMSELF Do you use online apps like Acorns or Robinhood to trade the markets? Easy as ordering a pizza on Grubhub, right? Not so fast. Find out how a young trader suddenly thought he was three-quarters of a million dollars in the hole and KILLED himself.
AT LEAST ONE LISTENER DIDN'T COMPLETELY GET TOM'S POINT ABOUT INVESTING AND THE PANDEMIC in our last episode. Now, his question is a good one. Listen and find out what he (and maybe you) didn't understand.
JohninLA wrote, "As a long time listener, if I understood you correctly, you regretted selling your positions after the 87 crash. Thereafter, you've taken a disciplined approach of dollar cost averaging into the market. So why are you deviating from your discipline, and selling your riskier assets? You may be repeating the same mistake you made in 87. You're making a lot of assumptions about there being a 2nd surge of Covid cases, and about the riots lasting all summer long. What if you're wrong? What happens if S&P 3000 is the new bottom?"
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WHAT DO WE DO WITH OUR MONEY NOW? The S&P 500 is now up over 38% since the low of March 23rd. Do we go with the flow? What will happen to the economy next? We're "reopening", aren't we? Will the stimulus payments and extended unemployment continue? Tom's made so many accurate predictions in the past. You can't afford to miss this episode!
S&P 500 index since March 23, 2020
Which way will the economy and your money go? Tell Tom now: firstname.lastname@example.org.
A LONGTIME CALLER AND FOLLOWER TELLS HIS AMAZING SUCCESS STORY John from Austin's journey began years ago when he was in a miserable marriage and financial trouble with an impressionable son, Cole. Find out where they are now thanks to listening to the advice of Your Professor.
Here is John's Email to Tom:
Here is John's newest credit score.
John finally paid off his car note. Look!
And he also completely paid off his Visa card balance!
COVID-19: A GOOD CHANCE TO GET OUR ACTS TOGETHER Judging from social media, during this pandemic, we're getting reacquainted with our pets, sharpening our cooking and baking skills, and having Zoom get togethers with friends and relatives we forgot long ago. But what are we doing about our spending and savings habits?
This is the cookie that Tom talks about in this episode. Made from scratch with limited sweetness, organic cocoa powder, and whole grain whole wheat flour.
WHAT TO DO ABOUT YOUR INVESTMENTS DURING THESE HARD TIMES The COVID-19 pandemic has sent the stock market down dramatically, so Tom brought in an expert: Mitch Tuchman, Chief Investment Officer of Rebalance360.com. Mitch and Company manage over 10,000 portfolios worth over $4 billion. Find out what you should be doing with your investments right now.
Here's the book that Mitch referenced, A Random Walk Down Wall Street by Burton Malkiel (it's on Tom's bookshelf!).
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WHAT ARE WE LEARNING ABOUT MONEY FROM THE CURRENT CRISIS? The truths of so many of Tom's lessons that you ignored are now obvious. How can we remake our financial lives so we don't make the same mistakes after things get back to normal? Also, should you be investing now when things are awful? WWWBD? (What would Warren Buffett do?)
This piece from The Motley Fool offers thoughts about investing in bad times from billionaire Warren Buffett.
Tom's room at 3 Denise Court in Selden, New York and the window that froze over.
Got money questions or comments? Tom wants to hear them: firstname.lastname@example.org.