Latest / The Curve / TCW80: So... what the heck happened to the stock markets?

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TCW80: So... what the heck happened to the stock markets? · The Curve

0:00
Hi and welcome to the Curve Weekly. The podcast that keeps you up to date with all the money,
0:06
business and stock market tea. Everyone should experience for us at least once in their lives
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and Annie shouldn't miss out just because she can't afford it. Help me, I ain't poor.
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But can we start this episode by talking about the Martha Stewart stuff?
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I was going to say about my TikTok video this morning.
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Oh yes, she did a TikTok. We're back, baby. We're fucking back.
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We're talking about markets. The markets, fucking back.
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If anyone wants to sing in the car with their children apologies for me.
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Thank you.
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Also, if anyone wants to follow us on TikTok, we've got a stunning 10,000 followers.
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It's absolutely going off on there. I was just saying to Vic, I think she was born to be a TikTok star.
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Like, I really think she's so good at it. Like, looks and key.
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Like, almost at the territory and I don't know what it is, but I think it's because you...
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You've produced me really well.
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No, I honestly think it's you're a bit gummy.
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Like, as in, there's this sort of underside to you that's like...
0:54
A bit weird.
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Yeah, like in a good way. I honestly don't mean that.
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I'm friends with that to another friend. Like, why are they like...
1:00
I never knew that because that's such a weirdo.
1:01
Yeah, she's super weird, but like, I think your sometimes like ability...
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It's almost like...
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I don't think that many people would have seen that side to you, you know?
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But for some reason when you go on to TikTok mode, I'm like, there she is.
1:16
We, so we had a like a high tea yesterday with one of our mentors, business mentors.
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And we went to the most beautiful hotel.
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It was like, what was it called?
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Sheraton.
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Sheraton. Anyway, it was in the middle of London and we went and met her and her daughter came,
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which was actually quite cute.
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So funny that I was so hungry on my way there.
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That I bought a pre-scoffed it before this meeting.
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And then she orders this beautiful high tea.
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And I was like, I'm so excited.
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You know those things you see in the movies that are like the tear kind of like,
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they almost look like different levels of a house kind of and then they have like...
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Series at the bottom takes at the top.
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I was just absolutely going for it.
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But anyway, but we were talking about the idea of like getting into places or like...
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I think I'm picked.
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Oh, that's right.
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She was like, I wasn't, I get in everywhere or something.
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And we were like, what do you mean?
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She's like, oh, I've got different approaches to it.
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You know, I've got my like...
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I'm very strategic.
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You know, I'm very observant.
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Yeah, she said it for me.
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It was like running through the different approaches.
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Anyway, her daughter was like, oh, I have to leave.
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Like she gives me the signal that's like black bunny or something.
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Get out of here.
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Yeah, I'm about to go out.
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I'm about to do it.
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And so she's just like, I have to duck out.
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Anyway, it kind of spiraled into being like, God imagine if we...
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It's like a game.
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Yeah.
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Especially when I'm like, can I do this?
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It's quite interesting.
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Yeah, it is interesting.
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Anyway, we were saying like, God, we're so chicken with that kind of thing.
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We really need to like step it up.
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And then we were still talking about the Olympics and how Snoop Dogg was there
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and how much he was being paid and Martha Stewart.
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And then she said something like, did you know that
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she was one of the few women that's been jailed
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or like sentenced to prison time for inside trading, like that?
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And I had no idea.
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And it's like, she looks like there's like home-making woman,
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home-making like...
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Because she know for cooking and cooking show, yeah.
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And very like, quite wholesome.
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The wholesome, yeah, wholesome is a good word.
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Yeah, yeah, yeah.
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Anyway, you're like, what?
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Yeah.
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I kind of knew she went to jail.
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I just kind of didn't know that that's right.
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I had no idea she went to jail.
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And then we looked into it about like, you know,
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what happened and blah, blah, blah.
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And we were just sort of joking about how...
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God, she's at the Olympics.
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How cool would it be to go and get an interview with her?
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Because apparently...
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And she was like, do it.
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You got it, yeah.
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I don't know if you're trying.
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Get on the train.
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And we were like, oh my goodness, oh my goodness.
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She was like, she's at the full seasons.
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Just go do it.
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She's like, this is perfect.
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Opportunity to go test the theory.
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And I was like, actually, it would be quite good content
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if we were like, here we are outside Martha Stewart's hotel room.
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Yeah.
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Trying to get her on the podcast.
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Talk about it inside of training.
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But anyway, Emily, our divine podcast producer
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has just been looking into some of the stats
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around why she was jailed and what happened.
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And she thought it was so fascinating.
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Because our mentor, LJ, was saying she was like,
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so many guys do inside of training.
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But like, hardly any of them get jailed for it.
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And it was just like the fact that they punished her so badly.
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I'm just having a look at some of the stats.
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The case revolved around her sale of iron clone systems.
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So she had stocks in, I was ages ago, like, December 2001.
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And she sold, was it like, 4,000 shares just before the stock price,
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like plummeted.
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She was in jail for five months.
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And her profile just like skyrocketed.
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Oh, right.
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So this was actually almost like good for her career.
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Which surprisingly, I mean, it doesn't usually happen like that.
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But I also think it's like a 85 to 90% of those convicted of inside training.
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I mean, but that's representative of the finance industry.
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Do you know what I mean?
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It's like, it probably would be more 50, 50 if there was 50, 50.
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And what I thought was kind of interesting is that
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apparently it was her broker or someone that gave her the inside
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training being like, you know, sell your shares.
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This is about to happen.
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I would have thought he'd be the one that goes to jail, not her.
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You know, like, she's gonna sell the stocks,
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but she didn't really technically.
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Yeah, like she has to sell them through her broker,
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but she benefits from the brokers, the one that sells on her the heart.
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Yeah.
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Okay, I got you.
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I mean, I don't know in this particular case,
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but yeah, he probably should have been done as well.
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He probably got struck off or lost his job or something.
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I think I've found out.
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But it'll be like, if you, if we were in courts
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and you worked at a company that was like about to say this biotech company
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and you were like,
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the company's about to put out a really terrible result
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and the shoe price is going to tank.
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And I owned heaps of shares.
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And you were like, if I give you this tip,
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will you have your profits with me?
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Oh, so you reckon there's like a bit of that.
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Yeah, definitely.
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There was one in Australia.
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Do you remember Roxie Jussinka?
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Yes.
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Her husband got done.
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Yeah.
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Her husband has been friends.
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They worked at different companies.
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And one was giving inside information to the other.
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Like before economic results were released.
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It was something around data.
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They made so much money.
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They had a, like, pin house apartment in Bondi.
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They had like, let's say these G wagons.
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I'm like, they were stupid.
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And that they were so extravagant and fleshy
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with their winnings.
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I guess.
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Yeah.
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And then they went to jail heat,
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the best friend dobed and the other friend.
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Who was wiretapped.
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And now to get a shorter sentence.
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Wait, so like they basically put a little
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one friend and were like,
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Hey, if you want a shorter sentence
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and want to capture your other friend.
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Oh my God, an absolute.
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An arm.
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Weasel.
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Yeah.
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I mean, to be fair, if you're doing insider trading,
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it's probably not a shock that they didn't go in,
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like, raise up their friends and use the example.
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That is so interesting.
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So it was in 2007, 2008.
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Yeah.
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And her, she documented every day her outputs
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that she wore to court.
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And she blew up.
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Like, everyone was like, it was pretty funny.
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So she's kind of taking the piss.
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She was like, yeah, these are my outfits.
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She works in PR.
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So she was like, perfect.
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Yeah, she was probably like, hey babe,
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can you do some insider trading?
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Yeah, so that I can get a big deal of attention.
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So he can get some great PR.
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Yeah.
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Well, I mean, it's worked,
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because they are one of the most well-known families
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in Australia now.
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Yeah.
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That is so interesting.
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God, I had no idea.
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But this is why companies, public companies,
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anybody in like a senior position
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or access to like,
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privy information that might actually move the stock price.
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They have certain windows that they're legally allowed
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to sell their shares.
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And it's after everyone knows that information.
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So say a financial result comes out in July,
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then from maybe like end of July to end of September
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is when anyone in the company can sell or buy shares.
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And then it's closed.
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So it's not just before a financial result or anything.
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Right.
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What has been happening?
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What are we talking about today?
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I'm not much.
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You know, like much.
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Oh my God, there has been a shit like going on.
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Hasn't yet.
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Okay, give us an overview for anyone that's missed
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what's been going on.
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So things kind of started maybe like last Friday.
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And there was a few financial results
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in on the US stock market that didn't do too well.
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Like Amazon, for example,
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when people were getting a bit like,
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oh, this is not a good sign.
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Then come Monday.
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Monday was what they call it.
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Black Monday.
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There was like blood on the streets.
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Monday made him.
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Honestly, the headlines.
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Well, you just like almost laughable.
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Like, this is the newspapers time.
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We're like, we got news.
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Anyway, Japan was the first stock market
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to crash, quote unquote, crash.
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It was down about 12% in one day.
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I'm worried about it, say anything,
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because isn't he quite invested in Japan?
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Yeah.
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No, he hasn't, I mean, he doesn't,
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he doesn't care about this shit.
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You know, he's a long term investor.
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He's like, he's not commentating on daily moves.
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Why have, why have normal people cracked on to like
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the way to invest?
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Like it's actually hilarious how many people
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freak out, pulling them out.
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Like, because people would be out of jobs,
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like traders and brokers,
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like their whole job is to buy and sell shares.
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Right.
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But they need to be seen to be like, to their clients.
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Oh, don't worry, we sold shares before the crash
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or we could see it coming or like,
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yeah, it's all of like, it's all sales per day.
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Yeah.
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So anyway, yeah, Japan started off first.
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They fell about 20%
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overall over the last kind of week or so.
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Is it still down?
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No.
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So let me get to that.
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Oh, sorry.
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Yeah, sorry.
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We're just sitting the ceiling as I'm trying.
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So yeah, Japan started.
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It was their worst day since 1987.
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So why didn't I buy shares?
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Like, honestly, I need to be so much more onto it.
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I love that's your reaction.
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That's great.
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But coin then fell.
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Gold, gold did really, really well
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because gold is considered like a safe haven.
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So everyone either sells their stocks,
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put it into cash or into gold.
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Tech stocks in America.
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So all the large tech companies were hit.
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US stock market.
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UK, everything was.
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When you say it was hit, what was it hit with?
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People pulling the money out.
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People freaking out.
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People going, oh my god, I'd rather hold cash.
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This could be there.
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This could be a really, really massive correction
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or really massive force.
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So people freaking out.
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Oh my god.
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Did you take any money out?
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No.
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Emily, would you have taken money out
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if you hadn't even invested?
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Good girl.
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Wait, come over to the microphone
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because now I can hear you.
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This is our lovely producer, Emily.
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One moment, we're just gonna.
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Yeah, okay.
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So Emily, did you, if you have any shares invested,
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would you have sold them
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when all of this shit was going down?
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No, because I'm investing for the long term.
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But I need to have you well.
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A question and this might be really stupid.
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Why?
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Sorry, you have to rephrase that question
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and take out the smoke.
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You know what this podcast stands for?
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I have a very important question
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that is completely valid.
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Why did all of these stock markets not crash
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but dip in the first place?
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Yes.
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So there was some unemployment data
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that came out of the US
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that showed that unemployment was at a three-year high.
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So there was like economic data in the US
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and everyone's like, oh my goodness,
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unemployment is super high.
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The US is gonna head into recession.
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That was one point.
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The second point was that
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the US stock market had done really well.
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Like we were talking about in a video
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that was up like over 150%.
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You know, all these stocks have done really, really well.
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And so people are like,
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is this the top?
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You know, like is this should we,
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should we take some money out?
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True takes of profits.
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But it was mainly around the US
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heating inter-recession.
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It's the biggest stock market,
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it's the biggest economy
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when America sneezes.
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The world.
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It's not on this side.
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It's a flu.
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Yeah.
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So then we come back to this microphone, please.
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Thank you for that explanation.
11:26
All right.
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Emily, I would love to know
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if you have any more questions
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or thoughts on that.
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What happens
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because now that we're coming up
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are we now back to normal
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or has that had a knock on effect?
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You could be out of a job.
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Differside?
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It's done, okay.
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You can take the day off, Emily.
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You're going out.
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Where she's done.
11:47
Yeah.
11:47
Yes.
11:48
So everything is pretty much rebounded now.
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Not back up to where it was,
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but it's pretty much,
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it's like pretty much caught.
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It's so close.
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Like the S&P 500 was up to
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1.5% yesterday,
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so on Thursday.
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And that was its best day since 2022.
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So things are looking right back up there.
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The S&P 500 is now 12%
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up this year.
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So, okay.
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Let me say up this year.
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This is from the start of the year.
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It's nothing to do with the last week.
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So it's gone.
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It was going up like this
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and then it fell a bit.
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And then it's now back.
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It's not right back up to where it was on,
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I mean, the stock market started falling on Friday.
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So it's not back up to where it was,
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you know, a few weeks ago,
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but it's pretty much there.
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It's like,
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it's not concerning.
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It's what I'm saying.
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So what I'm hearing is
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basically I napped for a few days
12:35
and I've missed the boxing day sale.
12:37
Yeah.
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Monday was the biggest on sale day.
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Tuesday, everything was pretty much back to full price.
12:42
Ah!
12:43
Yeah.
12:44
And then everything just kept going up and up.
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I mean, I don't know what today's going to do,
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but it looks pretty good.
12:48
Everyone's pretty positive.
12:48
Like, how do I get the so-and-trade sale?
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And be like,
12:51
oh my god, the world's ending to like,
12:52
oh, it's fine.
12:53
You know, it's like so dramatic.
12:55
It's like, just take a chill pill.
12:57
But that's markets for you.
12:59
Honestly, this is what happened.
13:01
It won't be the last time this happens.
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You know, we'll probably see the happen again.
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And it's just a case of like realising
13:08
how quickly stop markets came back.
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It was literally the next day.
13:12
Do you know what I think we need to do?
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We need to start a star chart or something.
13:15
So every time it has a shitter,
13:16
and then it rebounds.
13:17
We put a star on.
13:18
Good idea.
13:19
So that every star green star.
13:20
So that every time that we're like panic, panic, panic.
13:23
So say COVID happened again.
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We look at the star chart and we think
13:28
this happens all the time.
13:29
Like, not necessarily COVID in touch
13:31
with that never happens again.
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But the point is is that things will always happen.
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And unless the world is literally ending,
13:38
they will bounce back again.
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And the reason, like, so the Japanese stop market
13:42
fell 12%.
13:43
The reason people panic and take their money out
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is because I think it's going to fall further
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and they want to almost protect.
13:48
Which is like counter-intuitive
13:49
because then it falls even further, right?
13:51
So I guess as soon as people are taking money out, it's like,
13:54
but if you if you if you were on to it say
13:57
and you sold your shares just before it crashes
14:01
and then bought it back right at the bottom,
14:03
you'd be you'd be amazing.
14:04
But that never happens.
14:06
You can never know when these are things are going to happen.
14:08
And what's going to trigger them,
14:10
what's going to trigger a sudden movement
14:13
in the stock market like this.
14:15
So what people will do is they'll probably wake up,
14:17
see the stock markets down with the Japanese one,
14:19
down 12% take their money out.
14:21
Then they wake up the next day, it's gone back up.
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And you've just if you've done nothing,
14:26
you would have been way better off.
14:27
But now that now you've pulled your money out at the low
14:30
and now you're going to put it back in at the high
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because the market's rebounded.
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So it's like, it's honestly don't feel like you have to do something.
14:39
I reckon there's so much.
14:40
It's psychology.
14:41
It's fragile, male, finance, bro, ego,
14:44
where they're like, I can time the market.
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It's like, that's what it is, right?
14:48
Because if everyone had the view of a long-term investing plan,
14:53
which is like proven time and time and time again,
14:55
to be the way to do it.
14:57
And even if the situation went on for a few months,
15:00
you know, say we did have a bad Monday,
15:02
Tuesday, next week, next week, next week.
15:04
It was quite bad.
15:05
And you were still investing through those months.
15:08
And then it started rebounding again.
15:10
You'd still be in a bit of position.
15:12
You're investing for four, five, six, even 10, 20 years.
15:17
I actually think this is a really good time to bring up
15:20
dollar cost averaging again.
15:21
Because this was a concept that I definitely took a while to understand.
15:27
And it's actually really simple.
15:29
Basically, it's the idea that you can like average the price.
15:34
You can like benefit when the price is low.
15:36
And you can also like, you get more for your money.
15:38
If you're putting in a dollar a week, can I do this?
15:41
I feel like because for some reason, every time I feel, yeah,
15:44
I don't know why, but let me try to tell me if I do this right.
15:48
Let's just say you're investing $100 a week,
15:51
but a year.
15:52
So it's like every Monday, well, by the way,
15:54
I imagine how much you've invested.
15:56
So every week, you put $100 in on a Monday.
15:58
Yeah.
15:59
Let's just keep it super easy.
16:01
Say every single week, the price goes up a dollar or down a dollar.
16:06
So say it's like week one, the share price is 50,
16:09
the next week, the share price is 60, the next week,
16:11
the share price is 70, 80 and so on.
16:13
And then sometimes it's not going back in the opposite direction.
16:16
Then it goes back up again.
16:17
So it's like the idea of, well, I guess like the,
16:20
the point I'm trying to make is that like, if you're consistently buying over time,
16:24
you get to like that, the price that you pay averages out,
16:28
rather than trying to like buy it certain times.
16:31
It means that when it has dropped, like for example,
16:33
if you were still investing across the last, you know,
16:36
a couple of weeks,
16:37
you would have got some really amazing deals,
16:39
because you were investing when it was low,
16:41
and it means that when it's like kind of middle or it's high,
16:44
that'll averages out.
16:45
Yeah.
16:46
Does that kind of like, does that make sense?
16:47
Come here, Emily, if you don't understand, because
16:50
and so if you're buying, if you're $100, say it's $20 a share,
16:55
so you're, you get, you end up buying five shares.
17:00
As that price increases, you can only afford to purchase less,
17:03
a lower number of shares.
17:05
So that you're $100 and you're buying shares that are $30, you can buy less,
17:09
you're buying $40, you buy less.
17:11
So then when the share price drops to $10, you can now buy more.
17:16
So then when it rebounds again,
17:17
you've got that bigger pool of shares that you've bought at a lower price.
17:21
You've got a greater number.
17:22
This is the stuff that confuses me because you're thinking about the difference
17:25
in the share price and the number of shares.
17:28
That means you can buy, which always.
17:29
Because your $100, your $100 is made up of a number of shares in the price.
17:34
If the price is high, the number of shares is low.
17:37
If the price is low, the number of shares is high.
17:39
But it's kind of irrelevant.
17:40
Like, no, because you're buying shares.
17:43
So then if you can now buy 100 shares at a lower price rather than
17:48
20 at a higher price, win those 100 shares, the share price doubles,
17:53
you've got massive amounts of money because you've got 100 shares rather than
17:57
would it make more sense in that case to do this on a weekly basis, to invest on a weekly basis?
18:04
Or because I like to just invest monthly and then forget about it and then I've been like,
18:09
I can have done my bit.
18:10
But with dollar cost averaging, would it be better to go in every week and invest a certain amount
18:15
of money? No. No, it's like you don't know.
18:19
It's more just about being consistent and regular from a psychological point of view.
18:23
It's like if weekly works for you, that's great.
18:25
Admittedly though, if you were investing each month,
18:28
you wouldn't have got Monday's low prices unless you were investing on that day.
18:34
So you're always going to be missing out on cheap prices at some point.
18:39
But who knows the next month,
18:41
it might, share prices might be lower.
18:43
It's more the trend, you're not trying to get the day if that makes sense of the low prices.
18:48
If these prices then fall again and stayed low, then when you next deposit your monthly amount,
18:53
you'll get those prices. So what you were saying before is it's like the lower the price of the
18:59
share, the more you can get with your money. Yeah. The further your money goes in terms of what you
19:03
can purchase. It's like going into a clothing store and saying you've got $100 and you can buy
19:09
two dresses with that of $50. If those two dresses were now $25, you can buy four dresses.
19:16
And then you walk out of the store that shop then goes back to putting those dresses at full price
19:21
of $50 and you're like, woohoo, I've got $200 worth of dresses. Does that make sense?
19:27
Yeah, that's kind of what it would be. It's basically I think also Emily,
19:30
on I know exactly what you mean because it's like, okay, well, if it's changing all the time,
19:34
should I just invest every day because it means I get... Putting every minute, every second,
19:37
like that's impossible. I think it's more just like the premise of it and the main kind of key
19:42
takeaway is ignore what the stock market does. That's kind of... It's not so in regularly invest
19:48
regardless of what it's doing, opposed to needing to be like getting all of the deals.
19:54
And I think it's just being aware that this stuff happens all the time, but over the long term,
19:59
whether it's 5, 10, 20 years, however long you're investing, the stock market goes up.
20:05
So it's like, you just need to remember that. Even though there will be days, months, weeks when
20:10
it's down, over the long term it goes up. If you're listening to this and by the way,
20:15
this isn't too shamey, I'm just curious. If you did make a decision to settle, I'd love to hear
20:20
what was going through your head or like how much you sold and how you feel now, because I think
20:24
it's really interesting to learn. You know, it's fine, like unless you've lost millions of dollars,
20:28
maybe you won't want to be investing, but like say it was a few hundred dollars and you're like,
20:32
oh, I did it because this is how I felt. It's just a good, it's good to reflect on that, I think,
20:37
because and actually every time that I don't make a decision to sell when I'm, when it's low,
20:43
I'm so proud of myself on high insides. It's kind of like not acting on impulse in any situation.
20:48
It's like give it a minute, take a breather and make a decision when you're feeling a bit more
20:53
calm and settled rather than like in the heat of the moment. Yeah. So New Zealanders are leaving
20:59
the country, so I'm not surprised. I know. Sorry, New Zealand, love you. I'm always behind.
21:06
But New Zealanders are flocking like birds to Australia, flying across the Dutch.
21:12
Okay, like concerning for a little long New Zealanders. I know, I mean, I did this when I was
21:16
21 or 22 because it's so hard to get. Yeah. I think I think pay and like living in that part of
21:26
the world is really expensive, but for some reason, salaries don't reflect it and Australian pay is
21:32
just so much better. It's the same over here, like it's way more expensive to live. Actually,
21:36
it's not really. I wouldn't say salaries generally across the board a bit, but Australia is one of
21:40
those ones where it's like, it's still expensive, but and it's known for having good salaries. It's
21:45
known for paying well. And yes, it's expensive, but it's all relative. It's like if your rent's a
21:50
little bit more expensive, but you're getting paid more, it's like, why can't companies, why is that
21:53
not changed or why to like, what are your thoughts on why companies in Australia? I know it's a huge
21:59
generalisation, but why do they pay more than New Zealand salaries better economy? The economy is
22:04
doing better. It's a government policy as well. But in New Zealand, we came out of the pandemic,
22:09
we wretched it up our interest rates. I don't know if that's a word. Wretched it up. Yeah,
22:16
wretched it up. No, babe. Hold on. Wretched it. Wretched. Oh, wretched, like R-A-T-C-H-E-T.
22:22
Yeah, you've wretched it up. Oh my god, wretched. You're right. How bizarre. Yeah, wretched it up.
22:27
In slang or informal use, wretched. I don't like it, but we can use that. So anyway, New Zealand
22:34
wretched it up. Wretched it up. It's interest rates post pandemic, which lead to higher mortgage
22:43
rates, recession, all of that. So we've had a bit of a tough few years, and Australia didn't do
22:49
that as aggressively. And so they've almost had like a better economic situation post COVID. So
22:58
that's meant that companies are doing better. People are spending all that. So I guess they haven't
23:02
had the effects as much as we have of like a cost of living crisis inflation, all of that. So
23:08
people are like, cool, let's go there, we get pay more, we get a bit of life. I have seen a lot
23:12
of people on social media be like, move to Sydney. It's in a live-in year high. The number of people
23:18
going. One percent of the population has left to go to Australia. Holy shit, that's a lot.
23:24
How many people is that? About 50,000 people. Wow. Yeah, which is an 85% increase on
23:30
2022. So these are 2023 figures. Yeah. And you get paid an equivalent of 30% more over there.
23:38
Yeah, I'm like, I'm kind of like, what are we doing? What are we doing? No, I'm actually, I was about
23:44
to say, can you remember here instead of Australia. But I think that's quite scary for the New Zealand
23:49
Economy, for New Zealand businesses. It's already pretty quiet there in terms of bars and
23:54
hospitality and gyms having enough people to have memberships and I just can't at worries me a
24:01
bit. And having to, it's so difficult to attract people back in. So for example, it's so hard
24:09
to attract not only locals and residents back to the country, but then let alone people from
24:16
other countries and immigrants and, you know, to help fuel the economy. Like we've seen it in the UK
24:20
at the moment, like all the anti-racism protests, immigration protests. It's like. The vast
24:26
almost opposite of like what? That's because Britain opened its doors. Oh, foreign, like,
24:32
economy immigrants. Yeah. Yeah. And so now there's all these riots of like, so I mean, it's slightly
24:36
different. I'm just kind of marrying the two up, but I'm just saying like it's, you have to do a lot
24:42
incentivising to get people back. It's really, it's hard, it's easier to keep people than it is
24:47
to win them back if that makes sense. It's kind of like customers. Yeah. It's like a
24:50
solid cancel something. It's much easier to keep a customer happy, give a bit of a discount,
24:55
then go and win them over from it. So all these 1% of New Zealanders moving to Australia might
24:59
never come home. It's kind of the point. It's like, oh shit, maybe our population will decrease,
25:03
our economy will be. And to be honest, economy's gone cycle. Like there'll be a period of time when
25:08
maybe Australia doesn't do so well. And then we get a whole lot of Aussies coming to New Zealand.
25:12
But right now, it's not very good. Anyway, speaking of people moving countries as well, the UK
25:19
is one of the worst places in terms of tax. And people are leaving the UK. Is this all because
25:26
it breaks it? No, new Prime Minister. New Prime Minister has put in rules. I thought we had
25:31
high hopes for the new Prime Minister from like, I thought that the whole point was people kind of
25:35
happy about it. Yeah. The general population is obviously that's why I got in. But it's more the
25:41
higher end wealthy people are being hired. Because it's a left government. And it's the first time
25:46
I've had someone. Yeah. Yeah. Yeah. Yeah. Okay. So in a long time, they're planning to scrap this
25:51
like peripheral. Oh my god. Referential tax treatment for preferential. Referential tax treatment
25:58
for rich foreign residents. So there's this thing in the UK called if you're non-dom, so you're
26:03
non-domasiled. You live in the UK. What is domasiled? Like living? Like, well, like, where do you come
26:08
from? Like, we're domasiled in the UK at the moment. What is that word? Non-dom. Non-dom. Honestly,
26:15
when you said that, I thought we were talking about dominant tricks. Domasiled. I was like, they're
26:19
non-dom. They're not the dominance. So I'm a non-dom. I'm a non-dom. You're a non-dom.
26:24
Really? You're passive. The country that a person treats is their permanent home. Okay. So you
26:30
are a non-dom. No, but I think that if this is dom now, I'm now dom. The UK, right? No, you're
26:36
not here. No, but you're not. So it's if you're not born somewhere. Yeah. Yeah. Yeah. Yeah.
26:40
You have a substantial connection. You live in. You treat it as a person as your actual home,
26:46
but it's not. Okay. Yeah. Yeah. So any, any internationals that are living here,
26:49
are practically like non-domasiled. So, and are they being high attacks? Yes. Yeah. Oh, but
26:53
they're so stupid because it's in the whole point that like because of Brexit, there's hardly any,
26:58
like, diversity of people from overseas from a talent perspective, etc. And usually, that would
27:03
just usually non-doms or wealthy non-doms will have. I'm like, I really think it's elsewhere.
27:11
So you buying your house in New Zealand, you're going to be coming under this tax.
27:15
Yeah. So what does it mean? It means that it because you're non-dom. Just say you're not
27:20
a permanent resident. Like, stop being annoying. You're non-domasiled. You, but you will have
27:26
assets overseas. So they'll be captured under the UK tax treatment, really. No.
27:31
Yeah. So if I was to put mine in a truss. No. So if I buy a house, I'm going to
27:36
absolutely sell it because we don't have family. Only if we're living here. So what if I
27:40
bought it and then I held on to it for 10 years. Yeah. And then you move home. Yeah.
27:43
And then you change to being. So I have to invest for the long term and everything.
27:47
You become a dom in New Zealand. Okay. Yeah. Okay. Because we're domasiled in New Zealand.
27:51
And you're receiving all that. Yeah. That's a bit short. Yeah. So you just have to be a bit strategic.
27:55
So yes. And what are the tax not cuts? There's another one. There's another one.
27:59
Good. Possibly going to be a raise on capital gains tax here as well.
28:03
You made it look like this is an exciting thing. So this is a really shit thing. No. So this is
28:08
the chancellor of the ex-chiccer. So the chancellor of the, oh, let me get to here. So the
28:14
chancellor of the ex-chiccer. So this is the person that manages the finances of the nation.
28:18
So of the country. So she is a female Rachel Reeves. Shit. Yeah. The first female
28:24
to ever manage the UK finances. Can we get her on the podcast? And what are we 2024?
28:30
Puck that's cool. So that like women have not been being trusted with managing money,
28:36
little on managing in countries money until 2024 and Rachel Reeves.
28:40
Rachel Reeves she sounds cool. But hold on to it's Rachel Reeves. But now she's introducing
28:45
an increase in capital gains tax. So I'm kind of like Rachel. Oh, Han. Come on.
28:49
Which by the way, apparently Han's not cool here. No. Apparently we need to get that rid of our
28:53
podcast. Okay. I know, but I kind of sat for ceaselessly like Han. You know, not Han. Like
28:57
I don't really like Han. Yeah. Han's kind of funny, but maybe I just need to get rid of it.
29:01
So sorry. So Rachel is basically. It's potentially going to increase the tax on capital gains.
29:07
But what is kept for what? Property. Property. Yep. Stocks. Property. So anything. Yeah.
29:12
So does it mean if you get an increase in your investment, any kind of investment,
29:15
you can you pay more tax. I mean, it's not. It's not yet. Does that mean that if what if we were
29:20
here since tax? So the UK is going to be a great place. Hold on. So let's just say. So say I was
29:26
investing in the US stock market, but I was based here as a non-donor. Don't ask me that. Okay.
29:31
No, but I'm just going to say that I wonder if it's investing in the UK stock market. If you're buying
29:34
property in the UK, if you're buying property in the UK and you sell it, you just pay capital gains
29:39
and that's going to increase. New Zealand's like one of the only countries you don't pay capital gains.
29:43
And capital gains just for anyone that doesn't know is if you sell it and you've made a profit,
29:47
you don't have to pay tax on the profit. Yeah. Yeah. It's the change in the value. So that's probably
29:52
why New Zealand properties like so booming. Yeah. And everyone wants their property there. But who's
29:57
going to be the politician that's going to bring it in? Oh, surely they get kicked out. Well,
30:01
they wouldn't get the votes. They wouldn't. Yeah. Oh my god. It's such a hard thing. It's kind of
30:06
like you're stuck in a rock in a hard place. And lastly, Google and Meta have been doing secret
30:13
deals. I saw this in your notes. I didn't read it all. I saw a secret deal and I thought, what's
30:18
Google and Meta are like rivals. They're like two of the biggest internet social media companies.
30:24
I feel like the other day we were talking about how people have started like the searches for
30:29
tech talk have overtaken searches in Google and how the term Google and 10 years might be
30:34
didn't people will say tech talk it. So wouldn't you say TikTok would be up there as a rival?
30:39
Yes. Because they're private. These are us. Oh, TikTok's private and it's Chinese. But yes,
30:43
when I went to Sudan, I was like beast beaches in Sudan and I searched on TikTok. That
30:48
is restaurants. Shops me. Yeah. I just go go. I'd be like, oh, there's probably people that aren't
30:54
like me that are going. No, I'm like generic trip advisor kind of. I just don't know why I'm
30:59
like such a later doctor with that kind of thing. Like I was like the last person to get Facebook
31:04
out of all my friends. It's so weird. But so because like, you know, a year ago, if we'd
31:08
said get on TikTok, it could have been like, oh, there's now you're obsessed. Now I'm like,
31:14
would you and your spare time when you're like trying to mindlessly scroll? Yeah. It would be
31:19
TikTok Instagram, right? Yeah. Yeah. But I also have get a lot of news from TikTok. It's the fastest
31:25
place to find news. I mean, some of it's fake news. Emily, what are you? Instagram or TikTok?
31:30
Oh, yeah. Yeah. Yeah. Yeah. YouTube girl. Yeah. Yeah. I love that. I could have got someone
31:33
each in the team covering. Google and meter. So I'm not sure if you remember like years ago,
31:42
there was, was Mark Zuckerberg went in front of Congress and he was like, just to take a bit more
31:48
ownership around how toxic social media is for children. And so there's a band that they can't
31:54
advertise or market to children under the age of 18. But what has been leaked or found out is that
32:03
Meta had a secret project with Google to advertise Instagram on YouTube to 13 to 17 year old. Yeah.
32:14
So it was quite so what's going around? So 13 and 17 year olds would go onto YouTube and watch
32:19
YouTube's and that's the advertisements for Instagram that for Instagram or for products on Instagram.
32:26
Instagram. So why would Google? So it was a way to get around. Oh, sorry, because YouTube is not
32:31
owned by Google that. Yeah. YouTube's owned by Google. So why would they want to help Instagram? Why
32:36
would you make sure and Google want to help each others? And the whole point that they're like,
32:39
yeah, this is why it's so weird because it's like hang on, your rivals and you're being like
32:45
fierce competitors. But obviously, Meta can see that younger age groups heading to TikTok. So
32:51
they're like, desperately trying to get that younger age group. But they're not legally allowed to
32:57
target them on their own platform. So they're like, let's use another platform. So it's pretty dodgy.
33:02
Also, how would they have even established a relationship good enough to even have that conversation?
33:07
Yeah. Do you know what it reminds you of? You know, love actually when like the American and UK
33:13
president have that like little moment over that girl. Yeah. That's kind of what the sounds like.
33:19
It's always like they're like, we hate each other. But like, let's figure it out. You know,
33:23
even though Hugh Grant was like, thank you, Billy Bob. But you know what I mean? I'm like, I can't
33:28
even imagine like two very powerful people in such an enormous companies that are in such rivalry.
33:34
It's money. Meta going to Google will pay you billions of dollars.
33:38
But wouldn't they just be like, okay, let's leak that to the press. And then they'll go get
33:43
it on the left over millions of dollars. And I don't know. What's that phrase? Keep your friends
33:48
close, but enemies closer. I think it's kind of like this. But anyway, it's pretty bad.
33:52
That's terrible. Yeah. So they have no shame, do they? Yeah. And it was all disguised. It was called
33:59
like a known and like project. You know, it wasn't like project to target 13 to 17 year-old.
34:07
Yeah. It was very smoke and mirrors. So I just feel like as a parent in the current environment,
34:12
it would be like just minefield everywhere. Like how do we protect our children from like
34:20
subliminal messaging and like, oh, there's just so much that you can't control. And then when
34:25
you have some other biggest companies in the world being that deceitful, it's just like,
34:29
shit. But I mean, even if they find fine. I guess they can both pay the fines, right? They're
34:34
kind of like whatever, find us. I mean, Meta makes 40 billion dollars a year. So find us 40 billion.
34:43
And it's like, it's like such big dick energy. Yeah. Don't tell us what to do because
34:51
we'll just pair away out of it. Find us. We'll keep doing it. That's what I mean. It's
34:55
like us on the rest of us. I didn't mean to make it sexual. Yeah. You did kind of like,
34:58
I mean, over and show your ass. It looks like it's trying to fart or something. Yeah.
35:02
That is my news. What a great episode. God, that was interesting. How long? That was quite a
35:08
long one. Let's do a poll actually on Spotify and see, can you let us know if you would prefer us to
35:13
keep the curve weekly shorter? Because we used to do the curve weekly was like me. I would.
35:20
No, but like in terms of the amount of like the time we speak for, we used to keep it to like 20
35:25
minutes, 30 minutes. This is quite a bit longer. So can you just if we put a poll, can you just put
35:29
your feedback? Like, is it a case of you would rather it just be the length, like for example,
35:35
there's a lot of news this week. There's not going on. Is it fine for it to be a bit longer?
35:39
Should we just keep it shorter? So vote punchier. Yeah. Vote like punchier or don't mind. We'll put
35:45
that as like a poll. Do we have any other fun announcements? We've got the world's biggest
35:50
investing club and event, like sort of an initiation welcome this week actually for our founding
35:57
members. I know this is a bit shit because there'll be a lot of people listening who are not
36:00
founding members and you'll be like, what? So if you want to know and be like kind of the next
36:06
to find out and access the platform, we'll put a link in the podcast show notes that you can
36:10
just join the community and you'll differently here when the next like chance to join us. But
36:14
for anyone who is a founding member, just keep an eye on your email because we're doing, yeah,
36:18
there's like a little kind of like, it's like a welcome to the club on this Wednesday, so actually
36:24
like tomorrow. Hopefully you've got the email already. Anyway, bye. Thank you so much for listening
36:32
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Bye. See you next Tuesday. Wow. See you next Tuesday. I mean, Monday.
37:04
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37:16
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