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Trillions Wiped From the Share Market… What’s Actually Going On? · She's On The Money

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  Speaker 1: My name's Tatasha Bamblet. I'm a proud First Nations woman
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  Speaker 1: and I'm here to acknowledge country t glennyan Ganya, Niana,
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  Speaker 1: Kaka yah yam Binahaka nian Ar gay In, Nimbini, yakarum
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  Speaker 1: Jar doumayamiga Umaga Ihowaka nwaman damon immalan Uma bang gadaboma
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  Speaker 1: in and now in waka ghana on yak rum jar Wattanadana. Hello,
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  Speaker 1: beautiful friends, we gather on the lands of the Aboriginal people.
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  Speaker 1: We thank acknowledge and respect the Abiginal people's land that
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  Speaker 1: we're gathering on today. Take pleasure in all the land
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  Speaker 1: and respect all that you see. She's on the Money
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  Speaker 1: podcast acknowledges culture, country, community and connections, bringing you the tools,
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  Speaker 1: knowledge and resources for you to thrive.
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  Speaker 2: She's on the Money.
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  Speaker 3: She's on the Money. Hello and welcome to She's on
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  Speaker 3: the Money, the podcast that's here to show you investing
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  Speaker 3: is not just for the rich, It's for you too.
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  Speaker 3: If you opened your phone recently or scrolled literally any
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  Speaker 3: new app, you've probably seen headlines like trillions wipe from
• 1:03
  Speaker 3: the share market, don't don't, don't and if you're a
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  Speaker 3: normal human. That sounds pretty terrifying. It makes it feel
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  Speaker 3: like money is just literally disappearing overnight, and naturally people
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  Speaker 3: start asking the same question, should I be selling? I'm
• 1:18
  Speaker 3: beck sired, and with me is the woman who has
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  Speaker 3: seen enough market cycles to know that panic headlines and
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  Speaker 3: good investing decisions raally go hand in hand. Hi, Victoria, Hello,
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  Speaker 3: this is really really well topical, of course, but I
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  Speaker 3: think it'll be very helpful for a lot of people
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  Speaker 3: who are maybe panicking right now.
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  Speaker 4: You and I were talking about it off air before,
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  Speaker 4: and I just I feel so proud of your investing
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  Speaker 4: journey because you're just like, oh, no, I know that.
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  Speaker 4: Like if I logged into my Jerseys app and it
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  Speaker 4: was down, I just hold on and I was like, yes, Queen,
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  Speaker 4: that's what we want to hear. Yes. But before we
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  Speaker 4: get into this episode, I want to do a little
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  Speaker 4: financial advice disclaimer because I always just get so anxious
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  Speaker 4: talking about this stuff. Not anxious because I don't know
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  Speaker 4: what I'm talking about, but I'm like, oh, I don't
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  Speaker 4: want to get in trouble for like giving financial advice.
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  Speaker 4: So this is not about telling you whether you should
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  Speaker 4: buy or sell your shares right now. It's actually about
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  Speaker 4: understanding what happens when the market falls, and then how
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  Speaker 4: investors think in these moments and how that might impact
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  Speaker 4: the decisions that you're making, because the reality is, if
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  Speaker 4: you have a plan to invest for the long term,
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  Speaker 4: it will not be the last time the market quote
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  Speaker 4: drops and is really dramatic. We've got to understand that
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  Speaker 4: these are market cycles, and during somebody's lifetime there's going
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  Speaker 4: to be on average seven market drops.
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  Speaker 3: Okay, so let's start with what everyone is talking about
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  Speaker 3: right now. We're seeing headline saying things like ten trillion
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  Speaker 3: dollars been wiped from the stock market. So what's actually
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  Speaker 3: going on?
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  Speaker 4: Oh well, we've clearly lost all of our money. Damn,
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  Speaker 4: it's damn, it's gone. It went down the bin.
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  Speaker 3: Oh well, that's fine, nice while it lasted.
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  Speaker 4: Well, I think that's where we need to I don't know,
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  Speaker 4: sound like a broken record when in doubt, zoom out.
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  Speaker 4: Headlines like that are literally designed to grab your attention, Like,
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  Speaker 4: can you imagine if headlines were another boring day in
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  Speaker 4: the share market, nothing dramatic happened. I know you're not
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  Speaker 4: going to click on the article. You're not gonna read
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  Speaker 4: it to see it. The media is not gonna make money.
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  Speaker 4: Like even you and I Beck when we're sitting down
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  Speaker 4: and thinking about what are we going to call this
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  Speaker 4: episode that people are gonna want to, you know, consume, Yeah, Like,
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  Speaker 4: how do we name this episode? Obviously, I'm like, Okay, Well,
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  Speaker 4: people are going to think it's through dramatic if we
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  Speaker 4: see ten trillion dollars wiped out as opposed to Hello,
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  Speaker 4: please come with me and I'll teach you how to
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  Speaker 4: understand the emotional rollercoaster that is the share market. So
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  Speaker 4: it's a grabby headline for good reason, but that doesn't
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  Speaker 4: mean that it explains exactly what's happening. Yes, and what
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  Speaker 4: we're seeing at the moment is a really big mix
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  Speaker 4: of a few things that are happening globally. Trump psychotic, Yeah, Like,
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  Speaker 4: there's a lot going on there, and there's been a
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  Speaker 4: lot of uncertainty coming out of the U. We've had
• 4:01
  Speaker 4: ongoing conversations about the interest rates staying higher for longer
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  Speaker 4: periods of time, and we also know that they got
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  Speaker 4: increased recently to four point one percent. That is making
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  Speaker 4: people cack their dacks, cack their decks. That's something that
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  Speaker 4: maybe it's a Tasmanian thing. I don't know, but there's
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  Speaker 4: been I would say a lot of political noise, political changes,
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  Speaker 4: policy changes, and a lot of uncertainty around trade and
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  Speaker 4: government spending. And how many times have you seen oil
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  Speaker 4: in the media recently? Yes, everyone's talking oil prices, oil prices.
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  Speaker 4: What does this mean? Well, we don't even get all
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  Speaker 4: of our oil from the places that are currently impacted.
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  Speaker 4: Beck right, So like how much does that actually impact us? Yes,
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  Speaker 4: it impacts the economy as a whole, but like as
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  Speaker 4: a general consumer, we don't have the visibility and the
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  Speaker 4: backstory to go, oh they're being quite dramatic about that,
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  Speaker 4: or oh that's actually really serious. Yeah, they're right, like,
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  Speaker 4: we don't get that backstory, and in their articles they're
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  Speaker 4: not going to give us backstory. I know. It doesn't help.
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  Speaker 3: And it's crazy cause they look identical like actual breaking
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  Speaker 3: news exactly.
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  Speaker 4: Like sometimes I'll come into the studio and be like, beg,
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  Speaker 4: did you see this thing in the media, And you'll
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  Speaker 4: be like is that good or bad? And I'll be like,
• 5:13
  Speaker 4: all right, backstory so and then you're like, oh, that's
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  Speaker 4: trash v and I'll be like exactly exactly like exactly,
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  Speaker 4: but I think it's the general consumer. Why would you know? Anyway,
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  Speaker 4: The thing that I'm getting to here is that markets,
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  Speaker 4: share markets in particular, hate uncertainty like that it gets
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  Speaker 4: real anxious, Like the share market is also just girl.
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  Speaker 4: So what happens is investors are gonna start reassessing what
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  Speaker 4: company is worth, like they get a bit anxious and
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  Speaker 4: they're like, oh, I don't know if you're as good
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  Speaker 4: as you say you are, Like you're just you're not
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  Speaker 4: that girl right now, And that then leads to the
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  Speaker 4: prices moving because the share market, as much as it's
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  Speaker 4: built on all of the formulas and the ratios that
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  Speaker 4: I've taught you, it's actually also really built on emotion.
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  Speaker 4: Unfortunate humans are emotional creatures, and even if the math maths,
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  Speaker 4: if you get a vibe and the vibes are off,
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  Speaker 4: you're not gonna put your money in ie. So there's
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  Speaker 4: like a very big human element to this as well.
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  Speaker 3: But you've got you got you just really quickly. Is
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  Speaker 3: oil the same as petrol?
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  Speaker 4: Yeah? Oil is petrol oil? Petrol oil, well, crude I could,
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  Speaker 4: I could do a whole podcast is for you, But
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  Speaker 4: crude oil is the thing that we mine, and then
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  Speaker 4: crude oil gets broken into lots of different things. So
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  Speaker 4: it gets broken into petroleum, it gets broken into gas,
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  Speaker 4: it gets broken into like a whole heap of things.
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  Speaker 4: Do you know even like bitumen comes from rude oil. Yeah,
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  Speaker 4: so when we're talking about oil, it's not just going
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  Speaker 4: to impact fuel prices. It's going to impact lots of
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  Speaker 4: different prices of lots of different things in the economy,
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  Speaker 4: even beauty products. But because you're a general consumer, mainly
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  Speaker 4: the biggest oil product that you would purchase, beck is
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  Speaker 4: petrol that you put in your car. Totally, Like crude
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  Speaker 4: oil makes petrol and diesel got you yeah, oh my god,
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  Speaker 4: but it gets broken down.
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  Speaker 3: You're so smarty, you know that, Psycho.
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  Speaker 4: I have ADHD and like I can't not know things.
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  Speaker 4: If someone says, what's crude oil, I'd be like, well,
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  Speaker 4: obviously I've done a three am Google of that. Did
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  Speaker 4: you know that they like store it in really big
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  Speaker 4: silos and like that's how it separates. So they put
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  Speaker 4: the crude oil into a big silo, and then it
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  Speaker 4: separates at different levels because it's all different densities, and
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  Speaker 4: then it gets siphoned off and then yeah, I could
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  Speaker 4: do a whole podcast on crude oil if you wanted.
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  Speaker 3: Yes, please crazy how people feed this stuff out? Okay,
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  Speaker 3: back on track. So one thing I do keep seeing
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  Speaker 3: in the news at the moment is oil prices, Yeah,
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  Speaker 3: going up, and that are exactly you say petrol etcetera, etcetera.
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  Speaker 3: So does that actually impact the share market? Yes, it does, Yes,
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  Speaker 3: it absolutely does.
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  Speaker 4: Again it's the emotional side of things, but also it's
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  Speaker 4: a really good example of how global events then flow
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  Speaker 4: through to the share market. So when oil rise, what
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  Speaker 4: it does is it increases the costs for businesses across
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  Speaker 4: things like transport and production, which then puts pressure on profits. Right,
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  Speaker 4: because if you're spending more money on getting your item
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  Speaker 4: to your customer, are you just copying that on the
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  Speaker 4: nose or are you passing it on to your customer?
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  Speaker 4: Like are I going to charge beck more for shipping?
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  Speaker 4: Or am I going to charge beck more for the
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  Speaker 4: item because it now takes more energy to make that item.
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  Speaker 4: And then what that does is it can push inflation higher,
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  Speaker 4: which then impacts interest rate expectations. So when investors see
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  Speaker 4: oil prices moving, it can add to the broader uncertainty
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  Speaker 4: that is currently in the market because they go, oh, well,
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  Speaker 4: if oil prices are increasing, it doesn't mean that your
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  Speaker 4: product is more expensive right now. But investors and people
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  Speaker 4: who are making bigger decisions, and even you and I go,
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  Speaker 4: hold on, if petrol's more expensive, surely to you know,
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  Speaker 4: order that product in Queensland, it's going to cost me
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  Speaker 4: more to get it to Victoria because the drives get
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  Speaker 4: and be more expensive.
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  Speaker 3: Yeah, simplified.
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  Speaker 4: So I think that's putting a lot of pressure on
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  Speaker 4: the markets at the moment because people are like, how
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  Speaker 4: are these businesses going to be paying for the oil
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  Speaker 4: that they use.
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  Speaker 3: So when we hear something like ten trillion dollars wiped out,
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  Speaker 3: that's not actually money disappearing.
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  Speaker 4: No, it sounds very dramatic, but you're exactly right, it's
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  Speaker 4: not money disappearing. It's literally one of the biggest misconceptions.
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  Speaker 4: But as I've said before, the media makes a lot
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  Speaker 4: of money from their headlines and instead of saying ten
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  Speaker 4: trillion dollars worth of value that people were willing to
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  Speaker 4: pay has been lost, is not as grippy as ten
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  Speaker 4: trillion dollars worth of cash, right, Yeah, So when headlines
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  Speaker 4: say the amount that's been quote wiped from the market.
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  Speaker 4: What they're really talking about is a drop in market value,
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  Speaker 4: not physical cash leaving the system. Sure, there was no
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  Speaker 4: physical cash in that system at that point in time
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  Speaker 4: to actually be lost. So, for example, if our company's
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  Speaker 4: trading at one hundred dollars per share and then like
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  Speaker 4: the sentiment around it changes and people are then like, well,
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  Speaker 4: I'm only willing to pay ninety dollars for that. The
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  Speaker 4: company's value is going to drop, But nothing's actually been
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  Speaker 4: taken out of your bank account. It's just the price
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  Speaker 4: that someone's willing to pay has changed. So like you
• 10:20
  Speaker 4: could have you know, ten one hundred dollars shares in
• 10:23
  Speaker 4: your bank account right now, Beck, or in your share
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  Speaker 4: trading account, and they're worth one thousand dollars, and then
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  Speaker 4: tomorrow you log in and it's worth nine hundred.
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  Speaker 3: You still got ten share.
• 10:32
  Speaker 4: You've still got ten shares. And it's basically saying, Beck,
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  Speaker 4: if you sell today, I'll give you nine hundred bucks.
• 10:38
  Speaker 4: You're going to go bad deal. Don't want to do that.
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  Speaker 4: I'm going to wait until the market recovers and get
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  Speaker 4: my thousand. Yes. Do that makes sense? So we need
• 10:46
  Speaker 4: to understand that the market does historically recover. There's never
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  Speaker 4: been a point in time where the market hasn't recovered.
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  Speaker 4: We just have to ride the roller coaster.
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  Speaker 3: Yes, okay, in fact, it might be very good time
• 11:00
  Speaker 3: to do buy and cheap sex. Exactly, they're on sale, Beck,
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  Speaker 3: They're on sale. That's a really good way to look
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  Speaker 3: at it.
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  Speaker 4: They're on sale, Like, not gonna lie. Maybe I have
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  Speaker 4: been investing a little bit more as the market has
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  Speaker 4: been dropping, maybe exactly.
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  Speaker 3: So that does feel very different to how it sounds
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  Speaker 3: in the headlines.
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  Speaker 4: Absolutely, and I think a really helpful way to also
• 11:21
  Speaker 4: think about this. And like another example is property. So
• 11:24
  Speaker 4: like if your house is like in this market, this
• 11:27
  Speaker 4: isn't an astronomical number. But if your house was worth
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  Speaker 4: one point five million dollars today and then the market
• 11:34
  Speaker 4: softened and someone came and knocked on your front door
• 11:36
  Speaker 4: and said, hey, Beck, nice house, give you one point three.
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  Speaker 4: That doesn't mean you've lost two hundred grand cash. That's
• 11:43
  Speaker 4: just someone giving you a lower ball offer. And you
• 11:46
  Speaker 4: can go, oh, actually, Beck, or actually the I need
• 11:50
  Speaker 4: the cash. I'll take one point three, like I'll just
• 11:54
  Speaker 4: cut my losses. Well, you could be like, no, sorry,
• 11:57
  Speaker 4: get off my front door. This house is worth one
• 11:58
  Speaker 4: point five. I'm not selling for less than that. It's
• 12:01
  Speaker 4: your choice. You haven't lost anything. The opportunity that's just
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  Speaker 4: being put on your table right now, or the offer
• 12:08
  Speaker 4: that's on your table not what you want, and shares
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  Speaker 4: work exactly the same.
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  Speaker 3: Okay, So if this is happening right now, is this unusual?
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  Speaker 4: No? No, yes, isn't unusual at all. In fact, I
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  Speaker 4: think we're feeling like it's a little bit dramatic because
• 12:23
  Speaker 4: it's maybe one of the first times that a lot
• 12:25
  Speaker 4: of our community has been properly invested in the share market.
• 12:29
  Speaker 4: And obviously that's quite stressful if this is your first
• 12:32
  Speaker 4: market drop. But historically this has happened so many times.
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  Speaker 4: Global Financial crisis, the recession, COVID, it happened, like all
• 12:39
  Speaker 4: of these things have happened, the market has dropped, it
• 12:43
  Speaker 4: is then recovered, in fact, when it has dropped, and
• 12:46
  Speaker 4: you never know when the full drop drop is like
• 12:49
  Speaker 4: I can't tell you, hey, back today we're at the
• 12:51
  Speaker 4: very very very bottom of the market. Like it starts
• 12:54
  Speaker 4: to go down and people start investing, they're the ones
• 12:56
  Speaker 4: that make a lot more money. But it's actually one
• 12:59
  Speaker 4: of the most important things that you understand as an investor,
• 13:02
  Speaker 4: markets go through periods literally like this all the time.
• 13:05
  Speaker 4: Like I can't stress that enough. And what we're feeling
• 13:08
  Speaker 4: right now, I think it feels really big because it's
• 13:10
  Speaker 4: happening in real time and it's all over the news
• 13:14
  Speaker 4: and social media is so involved in our investing journeys
• 13:18
  Speaker 4: at the moment, like not even at the moment just now.
• 13:22
  Speaker 4: Like historically global financial crisis it was in two thousand
• 13:26
  Speaker 4: and eight, two thousand and nine wasn't really on social media,
• 13:29
  Speaker 4: and if it was, it was the finance bros like
• 13:32
  Speaker 4: you and I weren't feeling stressed about it in the
• 13:34
  Speaker 4: same way because we're like, not my circu's, not my
• 13:37
  Speaker 4: monkey's kind of thing, like Okay. Typically what happens first
• 13:41
  Speaker 4: is volatility. So volatility is a complex word that literally
• 13:47
  Speaker 4: just means up and down. So if I say, Beck,
• 13:50
  Speaker 4: the market's being volatile, I just mean the market's going
• 13:53
  Speaker 4: up and down at the moment, and it's probably doing
• 13:56
  Speaker 4: it it's a little bit more wavy, yeah, like when
• 13:58
  Speaker 4: the market's a little bit more stagnant, just like, oh,
• 14:00
  Speaker 4: the share prices haven't really changed today. But like sometimes
• 14:04
  Speaker 4: when people are starting to feel uncertain, one day it'll
• 14:07
  Speaker 4: drop down and then they go, oh, no, that was
• 14:09
  Speaker 4: just being a little bit stressy, and it goes back up,
• 14:11
  Speaker 4: and then next day they're like, oh, I'm a bit stressy.
• 14:15
  Speaker 4: It just starts to be a bit bumpy. Sure, and
• 14:18
  Speaker 4: that's what happens first. So you'll see the market swinging
• 14:20
  Speaker 4: up and then down quite aggressively as investors they're just
• 14:24
  Speaker 4: trying to process new information. That's what's going on. That
• 14:27
  Speaker 4: doesn't mean that it's good or bad. It just means
• 14:29
  Speaker 4: that people are trying to work out what the hell's
• 14:31
  Speaker 4: going on. And then quite often that turns into what
• 14:34
  Speaker 4: we call finance professionals call a market correction, which usually
• 14:40
  Speaker 4: is a fall of around ten to twenty percent of
• 14:43
  Speaker 4: the recent highs. So that's what kind of signals a
• 14:48
  Speaker 4: market correction that actually happens more often than people realize. Okay,
• 14:52
  Speaker 4: so is this technically a market crack? No, but ah,
• 14:58
  Speaker 4: the media would love you to think that it's a
• 14:59
  Speaker 4: market crash because that makes good headlines. Right. You're not
• 15:02
  Speaker 4: going to be like, oh, yes, it's a market correction.
• 15:05
  Speaker 3: You'll be like a market what a market doing?
• 15:07
  Speaker 4: Not a lot? And there's a very important distinction between
• 15:11
  Speaker 4: a market correction and a market crash. A correction is
• 15:15
  Speaker 4: a very normal function of a normal share market, right happens.
• 15:20
  Speaker 4: Often a crash is usually tied to something more structural
• 15:25
  Speaker 4: happening in the economy or in a financial system. So
• 15:29
  Speaker 4: at the moment, this looks much more like markets adjusting
• 15:32
  Speaker 4: to uncertainty rather than something fundamentally breaking. Yeah, Like, nothing's
• 15:37
  Speaker 4: broken back, We're just anxious girlies, and the share market
• 15:42
  Speaker 4: is being anxious. Nothing has officially broken yet. But if
• 15:46
  Speaker 4: there is a market crash, something's going to break.
• 15:50
  Speaker 3: A fear of abandonment, Yeah, exactly, And that's what That's
• 15:53
  Speaker 3: what the share market's going through.
• 15:55
  Speaker 4: And if you contextualize it like that, it's not that deep,
• 15:58
  Speaker 4: is it.
• 15:58
  Speaker 3: No, Well, that's exactly right. Okay, So here's where I
• 16:02
  Speaker 3: think people start to panic. If they open their investing
• 16:04
  Speaker 3: app and things are down, the instinct is to just
• 16:06
  Speaker 3: pull everything out and go to cash.
• 16:08
  Speaker 4: Yes, exactly. And I feel like that was old Beck.
• 16:11
  Speaker 4: Old Beck would have been like, oh my god, this
• 16:13
  Speaker 4: investing thing not worth it. No, what's new Beck gonna do?
• 16:18
  Speaker 3: New Beck is gonna hold, but also buy while they're
• 16:21
  Speaker 3: on sale.
• 16:23
  Speaker 4: You are speaking dirty to me. And that instinct to sell,
• 16:28
  Speaker 4: though it's a human instinct, we just cavemn. We just
• 16:31
  Speaker 4: want to keep our stuff, right, Like if someone came
• 16:34
  Speaker 4: and was like, hey, I really like that bear you killed,
• 16:37
  Speaker 4: Can I have it? You'd be like, no, I want
• 16:38
  Speaker 4: to keep it, like I don't want to lose anything,
• 16:41
  Speaker 4: Like humans inherently don't want to lose their stuff. Yeah,
• 16:45
  Speaker 4: we like stuff, and that's where people tend to make
• 16:47
  Speaker 4: I would say, bigger investing mistakes because we're like, oh,
• 16:51
  Speaker 4: I want to keep my stuff, Like I'm anxious because
• 16:54
  Speaker 4: when you sell during a downturn, you're effectively locking and loss. Yeah,
• 16:59
  Speaker 4: Like if you sell, you are getting rid of it
• 17:01
  Speaker 4: because you think, I'm going to convert this back to cash,
• 17:03
  Speaker 4: and therefore I'll have the cash and I'll be able
• 17:05
  Speaker 4: to like sleep it under my bed and it'll still
• 17:07
  Speaker 4: be there tomorrow. Yeah, because the other thing is feeling
• 17:09
  Speaker 4: really uncertain. But that's not benefiting you. And then you're
• 17:13
  Speaker 4: going to be faced with a second problem because if
• 17:16
  Speaker 4: you hold your cash and you sell out, when are
• 17:18
  Speaker 4: you getting back into the market. Yeah, when are you're
• 17:22
  Speaker 4: going to rebuy those shares.
• 17:23
  Speaker 3: When they're back up high again?
• 17:25
  Speaker 4: Normal price exactly, and then what do you have less? Less?
• 17:29
  Speaker 4: You have less? Do you want less?
• 17:31
  Speaker 3: Probably not?
• 17:32
  Speaker 4: No, I don't want less. Like that seems like a
• 17:35
  Speaker 4: really bad deal. And the tricky part is that markets
• 17:38
  Speaker 4: often recover before things feel better. Yeah, so, like there
• 17:42
  Speaker 4: will be a lot of animosity. Like if we go
• 17:44
  Speaker 4: back to the global financial crisis in two thousand and eight,
• 17:47
  Speaker 4: two thousand and nine, and I often go back to
• 17:49
  Speaker 4: this because it was arguably one of the most dramatic,
• 17:53
  Speaker 4: Like it was a global financial crash. It wasn't just like,
• 17:56
  Speaker 4: oh the US market crashed. It impacted the entire world.
• 17:59
  Speaker 4: Right when that happened. The market crashed and people were
• 18:03
  Speaker 4: still struggling. People were still like working out what's going on.
• 18:06
  Speaker 4: People were still like companies were being wrapped up, companies
• 18:10
  Speaker 4: were being liquidated, Like stuff was still happening, but the
• 18:13
  Speaker 4: market was increasing.
• 18:14
  Speaker 1: Mm.
• 18:15
  Speaker 4: So that often happens before you've cleaned up the mess. Yeah. So,
• 18:20
  Speaker 4: like it's kind of like spilling a glass of milk.
• 18:23
  Speaker 4: You spill the glass of milk, you're like, oh my god,
• 18:25
  Speaker 4: what is going on? But then you're like chill out,
• 18:28
  Speaker 4: and you just go on and get the paper towel
• 18:30
  Speaker 4: and you know it's going to be better and you're
• 18:31
  Speaker 4: cleaning it up. Mess is still there, it's not finished
• 18:33
  Speaker 4: cleaning up, but you're not anxious anymore.
• 18:35
  Speaker 3: Yeah, yeah, yeah, I see.
• 18:36
  Speaker 4: So the market's feeling a little bit better before the
• 18:38
  Speaker 4: mess is gone.
• 18:39
  Speaker 3: Does the market like depend on the people investing in it? Like?
• 18:44
  Speaker 3: Does it go up and down to mess?
• 18:45
  Speaker 4: I see, So if people aren't investing because they're anxious,
• 18:48
  Speaker 4: the market's going to go down.
• 18:49
  Speaker 3: Yeah, I see, I see exactly.
• 18:51
  Speaker 4: And I guess the tricky party is you just don't
• 18:53
  Speaker 4: know when that's gonna happen. So people sit on the
• 18:55
  Speaker 4: sidelines and they're just waiting out for things to feel
• 18:58
  Speaker 4: safe again, and by the time they do, the market's
• 19:00
  Speaker 4: already moved. Yeah.
• 19:01
  Speaker 3: Okay, Well, I really like the idea that if you
• 19:07
  Speaker 3: have X amount of shares, you sell them because you're panicked,
• 19:09
  Speaker 3: and then you go to buy them again, you have
• 19:10
  Speaker 3: less for the same price. Okay, So all to sit on.
• 19:13
  Speaker 3: I think it's a really good time to go to
• 19:14
  Speaker 3: an ad break, if you like.
• 19:15
  Speaker 4: And when we come back, we're going to talk about
• 19:17
  Speaker 4: why moments like this, the ones that feel I would
• 19:19
  Speaker 4: say the most uncomfortable, are often the ones where long
• 19:22
  Speaker 4: term investors are actually leaning into them and making a
• 19:25
  Speaker 4: lot of money. So don't go.
• 19:26
  Speaker 3: Anywhere, and we're back. Before the break, we were talking
• 19:32
  Speaker 3: about those trillions wiped headlines, what's actually going on behind them,
• 19:36
  Speaker 3: and why everyone suddenly feels the urge to panic sell.
• 19:39
  Speaker 3: So now let's get into what you should actually be
• 19:41
  Speaker 3: thinking about instead. So, V, if people shouldn't be panic selling,
• 19:45
  Speaker 3: what should they actually be thinking about during this time.
• 19:48
  Speaker 4: I'm getting a snack, putting their feed up, doing much.
• 19:51
  Speaker 4: Let your head out exactly. Just chill out, babe.
• 19:54
  Speaker 1: No.
• 19:54
  Speaker 4: The biggest shift I think is understanding that market drops
• 19:57
  Speaker 4: and opportunities go hand in hand. Our favorite investor, Warren Buffett,
• 20:02
  Speaker 4: would say, be greedy when people are fearful, and fearful
• 20:05
  Speaker 4: when people are being greedy. And when price is full,
• 20:08
  Speaker 4: you're effectively buying the same assets at a lower price.
• 20:12
  Speaker 4: As you said before, right, they on sale. And if
• 20:15
  Speaker 4: you tell me that stuff is like twenty percent off
• 20:17
  Speaker 4: at coals, I'm like, well, maybe I'll go to an
• 20:18
  Speaker 4: extra one because there's twenty percent off and that's a
• 20:21
  Speaker 4: good deal. And now that doesn't mean trying to perfectly
• 20:24
  Speaker 4: time the market though, because you don't know how long
• 20:26
  Speaker 4: that's going to last. You also don't know if you
• 20:29
  Speaker 4: know today you bought it at ten percent off, tomorrow
• 20:31
  Speaker 4: it's going to be twelve percent off, and you'll be like, oh,
• 20:33
  Speaker 4: I wish i'd gotten that. God, I know, but it
• 20:35
  Speaker 4: could also be the opposite. You could buy it at
• 20:38
  Speaker 4: ten percent off today and then tomorrow there's no discount
• 20:41
  Speaker 4: because the market's recovered. So you just never know. And
• 20:44
  Speaker 4: that's why we talk about investing consistently and regularly. So
• 20:48
  Speaker 4: personally and obviously this is not financial advice. Over the
• 20:52
  Speaker 4: last few months, I have been investing a little bit
• 20:55
  Speaker 4: more than usual because I'm like, oh, the market's starting
• 20:57
  Speaker 4: to like cool off. A few of the ETFs that
• 20:59
  Speaker 4: I hold have been down, and I'm kind of like, well,
• 21:03
  Speaker 4: I'll tip a little bit more in this month, and
• 21:05
  Speaker 4: then the next month I'm doing the same because I'm like, well,
• 21:07
  Speaker 4: I don't know if it's going to be off this month,
• 21:09
  Speaker 4: next month, the month after that. Maybe it'll recover, maybe
• 21:11
  Speaker 4: it won't. Who knows what Trump's going to do. Essentially,
• 21:15
  Speaker 4: you need to just understand that you can't time the market.
• 21:17
  Speaker 4: That's really really difficult. We'd all be so rich if
• 21:20
  Speaker 4: we could, though, so when you work it out, let
• 21:22
  Speaker 4: me know. But it does mean recognizing that volatility is
• 21:26
  Speaker 4: a very big part of your long term investing journey,
• 21:29
  Speaker 4: and historically some of these strongest returns have come from
• 21:32
  Speaker 4: people who have stayed invested when they're feeling a bit uncertain.
• 21:37
  Speaker 4: Even if you're not investing more Beck, you're just not
• 21:39
  Speaker 4: pulling your money out. You're letting it do its thing.
• 21:43
  Speaker 3: Yeah, okay, trust the process. So it's less about reacting
• 21:48
  Speaker 3: and more about staying consistent exactly.
• 21:50
  Speaker 4: And long term investors they tend to focus on a
• 21:53
  Speaker 4: few things. So good long term investors they focus on
• 21:57
  Speaker 4: the amount of time they have in the market that
• 22:00
  Speaker 4: over a long period of time, the returns are better. Diversification,
• 22:04
  Speaker 4: so not just holding one asset type, they're probably looking
• 22:08
  Speaker 4: at different ETFs or having a really diversified portfolio. Maybe
• 22:12
  Speaker 4: not thirty plus individual shares like Beck, but you do you.
• 22:15
  Speaker 4: And then they are focusing on consistency, so they're not
• 22:19
  Speaker 4: dumping all of their money in on one day. They're
• 22:22
  Speaker 4: going I'm going to create a consistent investment plan and
• 22:26
  Speaker 4: I'm going to invest every month or every quarter or
• 22:30
  Speaker 4: every period of time that works for me because over
• 22:33
  Speaker 4: the long term, markets have historically trended upwards, and even
• 22:37
  Speaker 4: though their path is not very smooth, that's the whole journey.
• 22:41
  Speaker 4: Like it might look like this, but when we zoom out,
• 22:44
  Speaker 4: it looks like this.
• 22:46
  Speaker 3: Yes, right, And it's not that what ill.
• 22:49
  Speaker 4: It is about the destiny. But also you've just got
• 22:51
  Speaker 4: to hold on during the journey. You can't like get
• 22:54
  Speaker 4: to the pit stop and then like get out of
• 22:56
  Speaker 4: the car and be like, well, guess I'm done because
• 22:59
  Speaker 4: I'm not at Queen's Land yet.
• 23:00
  Speaker 3: Okay, So I feel like this is also where like
• 23:02
  Speaker 3: mindset comes in absolutely.
• 23:04
  Speaker 4: And because investing it's not just about the numbers. It's
• 23:07
  Speaker 4: about behavior, and it's about emotion. And the biggest risk
• 23:11
  Speaker 4: to investors it was never the market. It was your baby.
• 23:15
  Speaker 4: The call is coming from inside the house. It is
• 23:18
  Speaker 4: how you personally respond to seeing what the market's doing,
• 23:24
  Speaker 4: like it's you. You're gonna be your own biggest enemy
• 23:28
  Speaker 4: in this situation. Periods like this are going to test
• 23:31
  Speaker 4: your ability to keep com and carry on and just
• 23:35
  Speaker 4: stick to your strategy. Because I'm telling you right now,
• 23:38
  Speaker 4: nobody likes logging into their share portfolio and being like
• 23:41
  Speaker 4: Oh that's down. Oh I feel sick. I'm going to
• 23:44
  Speaker 4: get rid of it. You've got to go, Okay, that's down.
• 23:47
  Speaker 4: Not nice? Why, Oh, I understand a little bit more
• 23:51
  Speaker 4: because it's X, Y and Z. I'm just gonna maybe
• 23:54
  Speaker 4: not look at my share portfolio tomorrow.
• 23:56
  Speaker 3: Absolutely, don't even look at it. Don't look at it. Also,
• 23:58
  Speaker 3: it's a really useful life gil to practice staying calm
• 24:02
  Speaker 3: in situations like this.
• 24:04
  Speaker 4: I haven't asked it yet.
• 24:05
  Speaker 3: No, no, me either.
• 24:07
  Speaker 1: I love.
• 24:08
  Speaker 3: I love a panic.
• 24:09
  Speaker 4: Absolutely, Like I'm freaking dramatic. Yeah, and you know what,
• 24:13
  Speaker 4: even me, I would say, Beck, I'm a pretty good investor.
• 24:17
  Speaker 4: I look at my portfolio. Oh, log in and it
• 24:19
  Speaker 4: will be down, and I'll be like, excuse me, Like.
• 24:23
  Speaker 3: What she's crying, tears a running down her face. No,
• 24:26
  Speaker 3: she knows what's going on. I do, But I have
• 24:28
  Speaker 3: to remind myself.
• 24:30
  Speaker 4: I'm like ill, what No. And like the other day,
• 24:34
  Speaker 4: one of my favorite ETFs was off, and like I
• 24:36
  Speaker 4: logged in probably like eleven pm, just to like check
• 24:39
  Speaker 4: what's going on the Market's not even open, then, Beck, like,
• 24:41
  Speaker 4: you can't you can trade technically, it all trade the
• 24:44
  Speaker 4: next morning. But like I was looking at it and
• 24:47
  Speaker 4: I was like, oh my god, what am my ETF
• 24:49
  Speaker 4: is off? And like this is a really big like
• 24:52
  Speaker 4: it's a vanguard at ETF. Oh my god, and like
• 24:55
  Speaker 4: you know, and it's like late and you're just tired
• 24:56
  Speaker 4: and how embarrassing. Like I'm Victoria, I'm meant to be
• 25:00
  Speaker 4: good at investing? Is this not a good ETF? And
• 25:03
  Speaker 4: then I'm like pull your head in, like I think
• 25:05
  Speaker 4: it's so comfiding. I was like questioning myself and then
• 25:08
  Speaker 4: I'm like I'm so dumb and like clicked on the
• 25:12
  Speaker 4: five year returns. I'm like, yeah, she's doing good.
• 25:14
  Speaker 3: Yeah, she's doing good with it. Right now, what are
• 25:19
  Speaker 3: you doing? Yes, seriously, she'll come back.
• 25:22
  Speaker 4: She's being a naughty child, I know.
• 25:25
  Speaker 3: I think especially for like I guess women in around
• 25:29
  Speaker 3: finance in general, like maybe it's not doesn't feel like
• 25:31
  Speaker 3: a safe space, but there's already like this hesitation around investing. Yeah,
• 25:35
  Speaker 3: I think that that can certainly play into it a
• 25:37
  Speaker 3: little bit, whether we're like conscious of it or not exactly.
• 25:39
  Speaker 4: And I feel like it's never been a space for
• 25:41
  Speaker 4: us guys. Beck and I hear it's for you. Yeah,
• 25:46
  Speaker 4: we're doing it during.
• 25:47
  Speaker 3: The conversation exactly exactly. You might feel like an imposter
• 25:50
  Speaker 3: in this space and be like, this isn't for me,
• 25:52
  Speaker 3: it's for you, Its for everyone.
• 25:53
  Speaker 4: How hard can it be?
• 25:54
  Speaker 3: Men do it exactly? Everything's made up at the end
• 25:56
  Speaker 3: of the day, isn't.
• 25:56
  Speaker 4: Exactly Like how hard can it be?
• 25:59
  Speaker 3: Yeah?
• 26:00
  Speaker 4: Exactly. And I think that's a very important point because
• 26:04
  Speaker 4: women are often more cautious investors, which makes us a
• 26:09
  Speaker 4: little bit angsty, but also it makes us petter investors
• 26:12
  Speaker 4: because we make more well rounded decisions and it can
• 26:15
  Speaker 4: actually be a strength. It also means that headlines like
• 26:19
  Speaker 4: ten trillion dollars wiped from the share market can push
• 26:23
  Speaker 4: people to going, oh, that feels not very good. I'm
• 26:26
  Speaker 4: just going to sit and have cash in my account.
• 26:30
  Speaker 4: Maybe investings for me, but not right now, and then
• 26:33
  Speaker 4: you miss out on long term growth. So understanding what's
• 26:36
  Speaker 4: actually happening is going to be really important for your
• 26:41
  Speaker 4: financial literacy, for your education, but also to help you
• 26:45
  Speaker 4: make decisions from a place of confidence rather than fear.
• 26:48
  Speaker 3: Yeah, okay, I think that's a really helpful way to
• 26:50
  Speaker 3: look at it.
• 26:51
  Speaker 4: And I also think that's probably the biggest takeaway that
• 26:53
  Speaker 4: I want people to have from today, and that's when
• 26:56
  Speaker 4: you see headlines about millions or billions or trillion being
• 27:00
  Speaker 4: wiped from something like It doesn't mean that your money's disappearing.
• 27:05
  Speaker 4: It just means that the prices have moved. It could
• 27:07
  Speaker 4: be an opportunity. And while that arguably feels very uncomfortable
• 27:11
  Speaker 4: in the short term, it's also a very completely normal
• 27:14
  Speaker 4: part of how share markets work.
• 27:16
  Speaker 3: So don't panic is basically the long short keep calm
• 27:20
  Speaker 3: and carry on. Absolutely kitchen, put in your kitchen. Don't
• 27:24
  Speaker 3: put it in your kitchen, put in the kitchen, put
• 27:26
  Speaker 3: it in the hallway, put it on the front door.
• 27:28
  Speaker 3: I just feel like that's a sign of terriable interior design.
• 27:33
  Speaker 3: Like absolutely not. But that's the first thing you see,
• 27:36
  Speaker 3: like okay, this is a like oh so.
• 27:39
  Speaker 4: Yeah, that's that's beautiful, honey. But keep calm, carry on,
• 27:43
  Speaker 4: zoom out, stay focused on your long term goals, and
• 27:46
  Speaker 4: try not to let the short term noise derail your strategy,
• 27:50
  Speaker 4: because investing is not about avoiding every dip. It's about
• 27:53
  Speaker 4: just kind of like driving through the rain. You know
• 27:56
  Speaker 4: it's not that good, you feel a little bit out
• 27:58
  Speaker 4: of control, but you're still on the to your destination.
• 28:01
  Speaker 4: Because we've got a good GPS. It's about staying invested
• 28:04
  Speaker 4: for the long term and then you'll benefit from that recovery.
• 28:07
  Speaker 3: That's it.
• 28:08
  Speaker 4: I love that. Learn how to surf exactly exactly. And
• 28:12
  Speaker 4: if you want more investing content, we have a full
• 28:14
  Speaker 4: investing hub on the She's on the Money website with
• 28:17
  Speaker 4: free resources and then courses and tools. We even have
• 28:20
  Speaker 4: a whole podcast playlist of all of our investing episodes
• 28:24
  Speaker 4: to help you feel more confident.
• 28:25
  Speaker 3: And don't forget to subscribe so you never miss an
• 28:27
  Speaker 3: episode and we'll be back again on Friday.
• 28:29
  Speaker 4: See you guys, Hi guys.
• 28:36
  Speaker 2: The advice shared on She's on the Money is general
• 28:38
  Speaker 2: in nature and does not consider your individual circumstances. She's
• 28:42
  Speaker 2: on the Money exists purely for educational purposes and should
• 28:46
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  Speaker 2: B N three two one six four nine two seven
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• 29:09
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