Latest / The Curve / TCW5: The best way to grow your $$ and why the NASDAQ is soaring!

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TCW5: The best way to grow your $$ and why the NASDAQ is soaring! · The Curve

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  We're really excited to have partnered with Audi to bring you the Curve Weekly, a podcast
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  that encourages women to work towards driving a more progressive future.
• 0:09
  And if you haven't already, check out our savings calculator at thecurve.co.nz to help
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  you reach your savings goals.
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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.
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  Everyone should experience for us at least once in their lives and Annie shouldn't miss
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  that, just because she can't afford it.
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  Help me, I'm poor.
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  How's your weekend, Ben?
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  Good, very quiet.
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  I look like I'm about to go fishing.
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  What are you wearing?
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  I'm wearing a fisherman's vest.
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  Can you stand up?
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  I want to see the full.
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  Oh yeah.
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  Oh, I think that's quite cute.
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  I like that.
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  It's good for like, trans seasonal, you know?
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  It looks off-brand for you, I'll be honest.
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  Like, I know.
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  I quite like it.
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  My weekend was not quiet.
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  I'm at, like, Roge Whiti, or Rotobiti, and we had the funniest night on Saturday.
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  I don't know what came over me, but I ended up having so many mezcal shots.
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  It was as if it was the first time we'd ever drunk alcohol.
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  It was like a girl sleepover.
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  We were rolling around on the floor laughing like it was so ridiculous.
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  And the friend, the friend's house that I'm staying at, like that, they've got these
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  speakers all through the house, but also in the trees outside.
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  So, like, it's like a sonar system or something.
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  So wherever you walk, you feel like you're in a concert or something.
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  So we went out to the grass.
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  All of us just fully naked, dancing under the stars, to an attachu wedding field in
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  Britain.
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  And then had like a nude swim and like, it was so much fun.
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  But in the morning, I woke up and I just thought, thank God, there was no one here.
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  I was trying to be cool in front of because it was not.
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  It was really not.
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  Goodness, her dad arrived today, not yesterday.
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  Okay.
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  Huh?
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  Yep.
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  Oh, fun.
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  So much fun.
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  So much fun.
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  Like, Rhoda, we do.
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  Hey, markets, talk to me.
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  Talk to me.
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  Talk to me.
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  Because do you know what's actually, so Arabella, my friend's dad, who's here, works
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  and finance.
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  Oh, yeah.
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  And I told him this morning, I was like, I'm recording a podcast, he's like, oh, yeah,
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  what about?
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  You're like, that's not really my job.
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  Yeah, I was like, do you know what?
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  I haven't done any research for this podcast, so kind of actually tell you what we're
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  doing.
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  I know.
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  I love the message I get from social site.
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  Look, you know, I can't really string two words together.
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  So can we delay it tomorrow?
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  I'm like, babe, you kind of don't have to even string two words together.
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  You can just sit there and look pretty.
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  No.
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  I was too hungover to record this yesterday, it just wasn't going to happen.
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  Yeah.
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  No, fair enough.
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  I want to bring my best self to every curved podcast recording.
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  And yesterday, I was not hurt.
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  Love that attitude.
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  Hmm.
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  Just do that every day.
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  Bring my best self to every day.
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  I feel like I try to do that.
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  I know.
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  Yeah, you do.
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  Yeah.
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  You're very good at that.
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  So markets, the S&P 500, so the US market was up again last week.
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  I'm kind of sounding like a broken record, but I'm liking it.
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  So the US market for anyone who's just tuned in for the first time, this is the top 500
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  companies in the States.
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  So when we talk about the US market, we're not talking about every single listed company
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  on the US stock market.
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  We're taking a selective group, which is the top 500.
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  And we're talking about how those have done as a group.
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  So yes, the S&P 500 index was up 2.2% last week.
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  So it's up 8% now this year, which is pretty good considering the disastrous year we had
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  last year.
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  But if we look at the NASDAQ, so that's again, another group of companies, but these are
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  on the NASDAQ, it's the top 100 companies on the NASDAQ.
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  And this is effectively a lot more kind of high growth companies.
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  So a lot of tech companies in there, they had a very, very strong week, last week, up 4%.
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  And now, if you'd invested in that index at the beginning of the year, your portfolio
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  would be up 16% in what's just over a month.
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  Wait, wait, wait, wait, wait.
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  So say you put in $5, 16%, what is that?
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  What is that in?
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  If you put in $100, you'd have $116.
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  No way, that's huge.
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  Yeah.
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  So considering that the index fell 30% last year over the whole year, and it's now already
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  up 16%.
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  That's quite amazing.
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  And this just goes to show why we harp on about dollar cost averaging, which is just
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  continually investing no matter what the market conditions, if the market's going up,
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  the market's going down, just keep investing.
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  And this is why it's so important, because I think very few people would have thought
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  we'd have such a strong rebound in such a short period of time.
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  And if you hadn't kept investing, you would have missed out on all those, on the gains
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  that we've had in the first kind of five weeks of the year.
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  So dollar cost averaging, I'm just going to rewind because I remember when I first heard
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  this and I was like, oh, what is that word?
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  But basically dollar cost averaging is kind of almost like an auto payment, wouldn't
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  you say?
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  It's kind of like you're putting money.
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  It's like your rent payment, you do an investing payment at the same time.
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  So whether it's $5,000, $10, $500, $5,000 every month through every week or however regular
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  you can do it, you're basically putting money into your chosen investments.
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  Yes.
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  Yeah.
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  So you're taking that emotion out of investing.
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  You're just continually investing no matter what the price.
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  So if the price falls 30% like it did last year, you keep investing.
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  And the beauty is that you buy the stocks or the index at a really low price.
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  So then when it does rebound, like it has in the last five weeks, you get those gains
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  because you've bought those lower prices rather than stopping investing and going, oh, this
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  is scary.
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  I'm going to wait until the markets rebounded or the share price of that company has rebound
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  is, and missing out on those gains, you're actually, you're buying more at the bottom.
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  So therefore the increase is greater if that makes sense.
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  And also, I reckon a good example of this is Tesla.
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  So for me, I bought this, I don't know, last year.
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  And then over the last three or four months, it's been not doing that well.
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  And I think it's all to do with, I don't know, what's his name, Elon Musk.
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  And I didn't keep buying because I was a bit scared.
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  And I thought, oh, imagine if this share price was fully taxed and I've got like $4,000
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  in all whatever.
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  And now it's starting to go back up again.
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  And I really wish that I had don't I cost you average, like keep investing for that time.
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  Even if it was just small amounts.
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  But I did, I didn't, because I was scared.
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  Do you know how much Tesla's up in the first five weeks of this year?
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  You'll be about to fall off your set of 75%.
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  Oh my God, that is a dagger to the heart.
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  I mean, like I'm happy it's gone up.
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  Thank goodness, because I really believe in Tesla.
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  But why did I not invest?
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  It's a great example of why you just keep investing.
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  If you, it's a long-term game.
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  And if you're positive in the long-term outlook of Tesla, then keep investing.
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  If you're not, then don't keep investing.
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  But it's just try not to get so consumed with these short-term movements of the stock market.
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  Because they happen, they will continue to happen.
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  But it's why we always say, you know, take that long-term view.
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  I think because I've been using the Audi E-Tron, the electric car,
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  and I just cannot believe how much I love it.
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  And also, I don't know, I do feel like electric is future now.
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  Now that I've been driving it, I mean, I couldn't really imagine what my life would look like
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  if I had to charge a car and like, you know, I don't know.
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  I didn't really understand it fully from an experiential standpoint, I don't think.
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  And now that I've been driving like, I don't know if you felt the same.
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  But it's like, oh, oh, this is amazing.
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  There's something weirdly like I feel bad now filling up my car with petrol.
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  Yeah, like I feel like I'm using a plastic straw or a takeaway cup.
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  Like I feel like it's weird.
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  But I'm like, but I need to get from A to B.
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  But I think, yeah, I think if Audi kind of did trials for everybody with E-Trons,
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  I think you had a lot of converts very, very quickly, because there's that psychological,
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  like, oh my gosh, I am now putting oil or petrol in my car, which is bad for your bike.
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  Yeah, there's that psychological issue.
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  A hundred percent, no, I think you're right, because I think just filling up your car with petrol
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  has become so normal, like going to a petrol station and just putting money in, you know,
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  and filling up.
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  It's just not something you think about, even the smell of petrol.
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  And then now having just like pulled up at an electric charging station, I just plug it
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  in and then you're good to go, you feel cleaner and just better for the environment.
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  And I do think that that has been kind of an interesting thing for me, because when the
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  share price, the teaser share price went down, for example, I panicked and I just didn't keep
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  buying, but since I've been driving the E-Tron, I'm like, oh no, I really truly believe
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  that electric vehicles are the way forward.
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  So it's been a good reminder for me, especially that it's up to 75 percent, I'm like, okay.
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  I know. But it shows how quickly these things can turn, you know, that's only in five weeks,
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  up 75 percent. And we're not short-term investors, but it does just show that things can change
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  pretty quickly. But I wanted to kind of explain why the NASDAQ in particular has kind of been up
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  so strong the past week, but also since the beginning of this year, because 16 percent for an
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  index is quite a big movement. And it's all comes down to, I guess, the makeup of that index.
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  So like I said, it's got mainly tech companies. So some of the top companies in that index are
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  Microsoft, Apple, Amazon, Meta, Google, Tesla, for example. So can I make a guess?
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  Yeah. Because last year, the tech companies were absolutely shitting the bed.
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  Is it something to do with a recorrection? Because they did so badly, because they were laying
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  off all the staff and it was kind of this whole thing. Is it almost like it sounds better than it is?
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  Like there are 16 percent, but actually they're heading back to more of a normal state.
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  I'm judging by your face that that's totally wrong.
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  No, I'm like parts of that are right. I'm like, yes, she's been listening. She's been learning.
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  Yeah. No parts of those are right. Yes, you're on the right track. But it's essentially because
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  a lot of those companies reported their results last week, their financial results. And I just
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  wanted to touch on a few of them. So we had Apple, which was if you'd read some headlines,
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  this is what I kind of, it's funny with media outlets and news outlets because obviously bad news
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  cells. It fell initially, but it's rebounded strongly. If you read the headlines, it's like,
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  Apple suffers first, quarterly sales decline in nearly four years, you know, like sales declines,
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  haven't declined as much since 2019. And it makes you think like doom and gloom for Apple
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  because bad news headlines sell. But we spoke about this a while back and it's all around,
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  well, why have those sales fallen? And it's because they've had factory issues in China.
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  So it's not because everyone's hating on Apple products. It's not because there's no demand.
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  It's literally a supply issue. They cannot keep up with demand right now. So that's only short term.
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  And so headlines like that, a lot of investors would be like, oh gosh, that's terrible and sell
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  their stock. And that's why it fell initially. And then people kind of look under the hood as a
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  mechanic, would say, I don't know, and you see. Thank you for explaining that. Jesus.
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  And they see, you know what, this is a really, really short term issue.
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  Factory's going to reopen. Supply's going to come back online. There's no problems with their
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  products. The demand is still there. But then we also had Amazon as well. They reported there
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  as well. And again, same headline. Amazon reports it's first, unprofitable, yes, it's 2014.
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  It's like, well, this was a bit different. So they had their, surprisingly, a lot of people might
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  not know this, but Amazon's one of the biggest cloud providers. And so it's got huge retail
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  business and logistics business. But it's got this kind of emerging cloud business, which investors
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  are, you know, putting a lot of, I'm sorry. So this is storing like photos, contacts, stuff,
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  everything. Yeah. Yeah. Yeah. And that only grew 20% versus kind of 40% previously. So it's a
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  bit of a slowdown in growth. And so that's why their share price had the same reaction.
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  But again, that cloud division is still growing 20%, they still made $150 billion in sales,
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  which is absolutely nuts in three months, $150 billion. That's like a lot of toothbrushes. And
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  also you think most of their products are not particularly high in value. So imagine the quantity
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  of units that'd be moving to be making that kind of money. 100%. Yeah. And then lastly,
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  we had Meta, which is Facebook. This was probably the star performer for the week.
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  So this is the most valuable player. Yes. Yeah. No participations to forget for this one.
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  They get the gold star award. Yeah. I used to get participation with certificates.
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  For what? Just for participating. And what the likes. Oh, I like athletes. Yeah, right.
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  I can't imagine sprinting or like long jump would be your thing. No, no. But maybe like the,
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  the telly, like keeping score of whatever analysis. Yeah, definitely.
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  Yeah. Yeah. Um, so they, so Meta was a star performer. She priced jump 23% one day.
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  What? I know. For a company that size, massive, massive, massive. And it was one of the best days
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  they've had an over, over a decade. And it was up nearly 30% for the week. Why? What was the result?
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  And this is kind of comes back to what you were saying, because they cut, they cut staff,
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  they cut costs. So they let they have let go of about 13% of their workforce.
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  That's in the last year. And but remember, it did fall about 65% last year. Yeah.
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  So you're still very, very far away from where it previously was. But it's still a really good
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  sign and investors are obviously feeling pretty confident about Meta because because of that
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  share price reaction. But I think all of this just goes to show like how quickly
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  share prices can move and change. And so it's kind of why we keep saying just keep regularly
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  investing, keep consistently investing, even if it's a small amount, going from $5 to a dollar,
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  will you going from $100 down to $50? I actually haven't been doing that. I need to.
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  I think because I just, I do not have enough at the moment. So I've been, I just sort of stopped
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  putting money towards my investments, but that's stupid. And I really need to sort that out.
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  Gosh, it's such a confusing space though to be like to know when to sell because obviously all
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  those headlines maybe sound bad on the surface and when you dig deeper, they're actually okay.
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  I will say that was definitely something that I took away from the Curve Classroom was
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  how to understand like financial statements and how to look at companies and really be aware of
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  the read flags when it is time to get out. And so for anyone who's investing or wants to invest,
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  but still feels a little bit hesitant around like knowing when to put your money in or take it out,
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  the Curve Classroom goes quite deep on it. But if you are interested in learning more,
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  head to the Curve.co.nz and you can see our page that has everything you would learn in the Curve
• 15:35
  Classroom and just feel free to get in touch with us because we're doing another intake in a
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  month's time so or three weeks really. So if you are keen to be a part of it, then do a bit
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  of research because you will learn a lot. Were there any final and now you can go help your
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  make it swim? I've already done it this morning. Oh, did you? Yes, yes, I did before the podcast.
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  No bra, no on days, but you know, see me dressed. Have a great white hangi day and see you tomorrow.
• 16:07
  We're really excited to have partnered with Audi to bring you the Curve Weekly, a podcast that
• 16:12
  encourages women to work towards driving a more progressive future. And if you haven't already,
• 16:16
  check out our savings calculator at thecurve.co.nz to help you reach your savings goals.