Latest / The Curve / TCW48: Hot tips, hot chips and hot guys in Morocco.

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TCW48: Hot tips, hot chips and hot guys in Morocco. · The Curve

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  Hi and welcome to the Curve Weekly, the podcast that keeps you up to date with all the money,
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  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'm poor.
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  This is surreal. I'm having a moment. So I'm sitting in a car. I've turned Mohamed
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  Lisa's heart's car into a studio. I'm on like a surf and yoga retreat in Rojo,
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  which by the way has been very good for the soul. Anyway, so I was like looking around,
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  trying to find somewhere to record this podcast and I went through all the rooms,
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  I was like, hello, hello, you know, you do the tea strike to see if it sounds eco-friendly,
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  like you're in a toilet. And I was like, oh no, the rooms are in cargo. And I thought,
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  shit, we might not be having a curve weekly this week. In the end, I saw the car parked in the
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  driveway and I thought, perfect, perfect, perfect. Perfect. I'm loving my best life. We wake up,
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  we go surfing. We eat food. I work during the day a little bit. We went for a hike today,
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  did a bit of yoga this afternoon. And then, yeah, it's just God, it's been the great.
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  Please don't move to Morocco. No, I won't. I do. It's been, it's honestly maybe the poorest
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  country I've been to ever, I think, because like the place where staying is beautiful. But then
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  when you leave and you go down to surf, you take your boards down this like big rocky cliff
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  to get down. And you walk past these places, which are obviously people's houses.
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  And they're just like the most basic concrete rooms with kind of like a foam mattress. And
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  to think that they then come and work here, I just like can't even imagine what they must.
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  I don't know, it feels really weird. It puts things in perspective. Yeah, massively.
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  I think it's always good to visit countries. I don't know. Personally, I love visiting countries
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  that are so culturally different from my own or that are different in terms of
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  developedness as well, because I think it is good. You do get a bit kind of bubbly in terms of your
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  perspective around things. And yeah, exactly. And so it's nice to go,
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  almost suddenly I was talking to a friend that went to India recently. And he was like, you know,
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  were you trying to do your best in terms of you saving the planet and not using plastic and using
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  you keep cupping all that. And then you go to countries like India where it's just
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  everything is out the window. Or like we saw this woman, like we're sort of riding this donkey
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  and it had these big containers over each side that were filled with plastic and rubbish.
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  And she just like picked them up and threw them down the bank into the ocean. And we were all just
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  like gobs max. Like the other day when we were driving from the airport here,
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  someone just finished their water bottle and chucked it out the window. Yeah. And you're like, oh
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  it's kind of, it makes you so angry because you're like, here I am doing all this good work.
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  Yeah. And there's other people that aren't. But it's kind of, I think also to put them
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  perspective, that's probably not their focus. We have the luxury of being able to consume in a way
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  that's saving the planet whereas for a lot of people, they're probably just trying to make a living
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  or trying to make money to feed their family. And if that means collecting bottles and throwing
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  them to the ocean because that's what they get paid to do, I don't know. You know, like I'm not saying
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  that that is, but. No, it's perspective. And we've said this before, but I think this is like a,
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  um, was such a good example. It's like, to a tea, being able to live by a, have the education to
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  know how to live to look after the planet, but then be on top of that, be able to do that as a
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  privilege. Yeah. Yeah. Sorry. There's this really hot Moroccan guy that's just, he's got like a tea
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  cozy on his head and he's sort of just like laughing at me, looking at me outside the car. And I'm
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  like, she's giving me game. The fact that I sit in the car with a microphone or does he think I look
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  like a loser probably if he's laughing, probably thinks you're a loser. I mean, great conversations
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  started. Um, okay. So I thought considering this is now seeking to ask if we could anyway, we,
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  we did all to 2023 rep. And I thought, you know, why not a rep about how the different stop markets
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  around the world have gone. So if we start with the best one this year, and I'm not going to go
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  through every country because that would take forever, but the main one. So the S&P 500, which is
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  the US stop market. So that's up 18% this year so far. And if we looked out over a five year period,
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  it's up 82%. Now the next best one, Australia, up 6%, or 35% over five years, then the UK
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  stock market, which is up 3%, but only 13% over five years. And then the low New Zealand has done
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  absolutely terribly this year. It's down 0.3% or 33% over the last five years. And so if we look
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  at that, we've got the US stop market up 18 and New Zealand up down 0.3. Like that's just wild
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  those two different performances in the stock market. And admittedly, we've had an election this
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  year. So people have been a bit nervous in terms of investing businesses have been a bit nervous
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  about making decisions in terms of growth. So I get it, but it's just crazy the differences. And
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  this is why everyone's so everyone we talk to on this podcast and everyone we talk to in our
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  community is like, I want to invest in the US. I want to invest in brands. I know companies, I know,
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  and we always talk about a lot of the stuff we talk about as new US companies. And it's because
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  it is one of the best performing stock markets. So it kind of kind of makes sense. But sorry,
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  someone's kind of into the car. Hi. What are you doing? You're spraying, you're, oh my god,
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  a lazy spring. Lovey smelling stuff. Don't worry about it. It smells fine.
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  It's so kind of you. But this, wow, that does smell delicious. Thank you. Thanks, Mohammed.
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  Place is fucking hot. I guess in summary, this is why we diversify because there's stock markets
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  all around the world that do differently each year. But it's quite crazy how well the S&P 500 has done.
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  I mean, 82% of the last five years, wild versus 13. Okay. So good. No wonder no one wants to invest
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  in the UK stock market. Imagine getting 13% return to their investments over the last five years,
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  like in total, not each year. That's like, oh god, can you imagine I'm just not even invest.
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  But then getting 82% return in the S&P 500, you'd be like, hell yeah. And admittedly,
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  this is what attracts new companies to list as well. If the stock markets doing really well,
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  they're like, cool, I want to list on that stock exchange. I don't want to list on the one that
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  hasn't. And so this is why we've seen a really poor number of IPOs list on the UK stock exchange
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  and the New Zealand stock exchange. But speaking of IPOs, Sophie, so for those of you who don't know
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  it IPO stands for initial public offering. And it is when a company becomes public for the first time.
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  So it's when a company goes to bring a private company that only certain investors can invest in
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  to public and anyone can invest in it. And it's listed on the stock exchange. So there's a
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  company. I want to see if you can guess this actually. There's a company in the UK.
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  They've shopped on pretty much every street corner. And the logo's a little blue circle.
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  I bet you know, I don't pay any attention to anything. A blue circle.
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  Great. That's a red star, but close. Okay. So it's a blue circle, blue circle.
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  They're huge. Sometimes two, three stories.
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  A minute.
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  Cloth. Thank you. If you've got a cold or flu. A pharmacy. Boots. Yeah. Yeah. She got that.
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  Yeah. Go on. So Boots is part of a bigger company. So it's part of Walgreens, which is a US
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  listed pharmaceutical company. So it is part of a listed company already. But what they're talking
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  about is spinning off or pulling apart and separating the Walgreens and the Boots and listing
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  the Boots pharmacies on the London Stock Exchange. So Walgreens is currently listed on the NASDAQ,
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  which is a stock exchange in the US, like the New York Stock Exchange. It's another one.
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  And so what they're they're talking about now is separating it off and listing it on their London
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  Stock Exchange. So they're quite exciting. It's quite cool because you've talked about the idea of
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  spin-off companies before I think in the Curve Weekly newsletter. It's just the idea that they think
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  that maybe resources are better if they're their own separate companies and that whatever they spin
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  off is probably going to do really well on its own rather than being a part of a bigger company.
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  So and I honestly think I mean I don't know nothing about the parent company that own Boots, but
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  I imagine Boots would do really well on its own. It's a pretty massive brand in the UK.
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  Yeah I mean they've got 2,500 stores which is quite wild. So Walgreens actually bought Boots in 2014
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  and rolled out a whole lot of new stores. And now they're kind of selling it back to investors
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  by putting it back on the on the Stock Exchange. So it's expected to be about a 7 billion
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  pound IPO which is massive and this is one of the very few IPOs that the UK Stock Exchange has had.
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  So there's only been 10 companies that have IPOs on the London Stock Exchange this year
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  and to put that in perspective that's the lowest volume in over 10 years. So the lowest number of
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  IPOs in 10 years and if we compare that to the US the US has had 150 IPOs this year on the US Stock
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  market. Oh God it's looking a bit dire over in the UK isn't it? Yeah I'm in other news we had
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  an update from McDonald's this week and they announced it they're gearing up before their quote
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  unquote fastest period of growth either which is might be kind of confusing considering I feel like
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  how can McDonald's grow more? It's I feel like it's everywhere. Anyway they are opening 10,000
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  new stores globally over the next three years. Wow that's a lot. That means they're going to have
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  50,000 stores globally which is wild and I want to put this in perspective. So it took them 33 years
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  from opening their first McDonald's store to hit 10,000 stores and now they're going to open 10,000
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  stores in the next three years. Gosh that's a lot. So it took them 33 and now that's going to take
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  them three years which is just crazy. So that's about 2,000 stores per year and so this new plan or
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  this new target means they'll be opening a McDonald's store every four hours and 20 minutes.
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  It's like McDonald's is having babies every four hours. Yeah yeah pretty much and hey they've got a new
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  format as well. So they're opening a new small format store because this is a thing they can open
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  as many stores as they like but like it's getting space you know they're for the big McDonald's stores
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  is or you know creating that point of difference for customers. So they're opening a new format
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  called Cosmic. So is it McDonald's Cosmic? It's called Cosmic. COSMC. So Cosmic. Oh and so it's all
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  it's kind of to rival Starbucks. It's all about specialty drinks. Yeah it would be interesting
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  to see how how that goes and that's included in those plans to be at 50,000 stores by 2027. So
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  they won't all be McDonald's or we have few there's only a handful of locations it'll be this new
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  format but could be quite interesting to see how that goes. Cosmic sounds tacky. I know it's
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  like kind of sounds like you'll wreck your scrambling for ideas. Yeah I know we can do a new format
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  out of this world. Cosmic. Not into it. Not into it. And there was a recent report that came out on
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  some of the hottest or fastest growing jobs in the US at the moment which I thought was quite
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  interesting and you'll be stoked to know it's very niche actually the fastest growing jobs.
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  This means the people that I guess the industries that need the most people that they can't keep
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  up with demand effectively as what's saying is wind turbine service technicians.
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  So and Chris for 50% but this is good because it means that there's big projects and there's
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  this big government push to use renewable energy and they just can't get enough people and so
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  yeah they're just trying to hire and hire and hire and hire and so it's the fastest growing job.
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  So if you are like gosh what should I do with my life? Yeah maybe be a wind turbine technician.
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  So niche they're probably the reason that's so needed is that no one does that job. Totally yeah
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  but other ones are like nurses. Nurses was the next fastest growing. I think this was so
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  many of them have quit after college because it's just it's way too much to handle. Yeah and then
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  data scientists which is kind of makes sense considering all this move to AI and everything
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  but it did really it was literally 50 feet apart from the wind turbine technicians the fastest
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  growing positions or jobs was literally 50 50 between health care and IT tech data like in terms
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  of you've got physiotherapists but then you've got software developers you've got medical
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  and health service managers and then you've got IT security people like honestly it was literally
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  50 50 and it made me think like if you think about jobs you should be like and you see these kind
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  of stats you should be thinking of these they're almost like leading indicators of industries that
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  are going to do well or industries where people are seeing demand because if you ran your own
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  business and you were seeing revenue grow and grow and grow you're like shit we need to hire 10,
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  20, 50 people that's a leading indicator in terms of from an investor point of view if you're seeing
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  stats like this shit wind turbine technicians okay there's obviously haps of projects
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  and heaps of companies that are demanding these types of employees so therefore they must be seeing
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  a lot of growth otherwise they're not just higher for the sake of hiring higher because they've got
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  the growth that they need to fulfill does that make sense that's no it's so clear and I would never
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  have thought about it like that yeah so it's looking at these so when I looked at these jobs and it
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  was like wow okay wind turbine technicians health care and IT data you know technology I was like
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  that kind of makes sense we've got climate change happening and therefore this big pusher
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  renewable we've got health care we've got an aging population people wanting to be healthy for
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  longer and we've got AI tech you know all of that developing so it's kind of reinforces the idea
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  that those are the kind of areas that we should be investing in or those are the kind of areas that
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  are seeing growth and I'm not saying that all of them will do really well but if you were like
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  looking at this you'd be like personally I'd be like okay I'm going to invest in an ETF that's
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  exposed to you know these fastest growing industries or these fastest growing job positions
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  because it's obviously demand there I mean I don't know if there's a wind turbine ETF I mean
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  it probably could be but there definitely be there's definitely a ton of renewable energy ETFs so yeah
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  I thought it was just an interesting way to look at when you see stats and headlines
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  hot as paying job with the US you know it's like no it's such a good yeah it's such a good tip
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  because I think that's how your brain works you think economics okay let's zoom out and think
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  about that from an investor standpoint but most of us don't so pointing out that those as massive trends
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  are super helpful also for anyone that's like but what does that that mean from like a fundamental
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  really basic level the idea is that money will be made in areas that are growing because there'll
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  be more companies doing well there's more demand for their services or their products so by investing
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  in those types of companies or sectors you'll be hopefully reaping the rewards from investing
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  just like the companies will be yes exactly yeah because the share price reflects the growth so
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  the company's growing the share price will grow as well so that's kind of how you want to think
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  about it so you want to invest in companies that are growing which means you want to invest in
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  industries that are growing all of that yeah and then lastly on Bitcoin so Bitcoin had a bit of
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  a tough week this week it's up 150% this year so it kind of makes sense that it took a breath
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  there and it this was kind of it wasn't a lesson that I wanted to teach on Bitcoin it was more
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  less I wanted to teach on when things do really really well there is usually a natural profit taking
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  or people being like you know what I've done really well out of this stock this Bitcoin and I was
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  going to sell some and take some profits and so when I read this headline I was like okay this is a
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  really good example of why don't get phomo or don't invest in things just because they're going up
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  because you don't want to be that person that invests in something that's going up and then
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  everyone else decides to sell or take profits yeah and it could go up another 150% but I think it's
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  kind of looking at the probabilities or looking at the fact that some investors have been in and they've
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  got 150% return they're going to be starting to think okay this is quite a massive return that I've
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  had in one year I'm going to start taking profits because I don't want to get greedy and then so
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  coming in as a new investor wants something's already gone up so much can be quite risky because
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  there's people that have been in there that are probably going to exit and I've been burnt so many
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  times by this as well I'm like oh no but it's still got so much growth and oh my gosh it's still
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  going to do so well it's like yeah but it's already done so so well whereas I'd rather spend my time
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  finding something that maybe hasn't done as well or as more of a steady grow and not so volatile
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  that you don't get these periods where it's done really well and then people sell yeah it's just
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  it could give you a bit of a headache if you're coming in investing and then it drops so it's just
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  being aware that if something's done really well in a short space of time being there's probably
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  a lot of investors sitting there going okay it's time to take profits and so if something's gone
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  up 10% and the outlook looks really good I'd be way more comfortable if you're seeing that then
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  something that's gone up 150% and the outlook looks good I mean it's easy to be done but
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  no but I think just that whole the whole curve weekly I loved it I loved that I'm in a car in
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  Morocco I loved that you talked about all the things you talked about I think I learned a lot
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  and I think a lot of people would have too and I also love that you're selling to look at all the
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  headlines and news and stuff and thinking what's the lesson I want to teach you because that's
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  exactly what the point of this is so yeah loved it thanks Brian thank you so much for listening
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  podcast and we hope you have a good week and see you next Monday bye bye see you next Tuesday wow
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  see you next Tuesday I mean Monday