Latest / The Curve / Why the Stock Market’s Freaking Out - And What to Do.

Transcript

Why the Stock Market’s Freaking Out - And What to Do. · The Curve

• 0:00
  Welcome to the Curve Weekly, the podcast that keeps you up to date with all of the money
• 0:04
  business in stock market too. Brought to you by the Curve's research team,
• 0:07
  it's the latest insights on what's happening in the stock market, companies,
• 0:11
  other money related news so that you can stay educated and ahead of the curve.
• 0:15
  You can thank us later for sounding smarter than those finance bros you need to know, Patti.
• 0:20
  I have never been more excited for a Curve Weekly than this one than today.
• 0:26
  Like I got my power suit on, I've read it. My reporter crossing lines now to London.
• 0:35
  That's actually so good. No, because I look forward to these in general,
• 0:42
  but I'm looking forward to this now because I know that there's never been a time where I've
• 0:47
  thought, thank God for the Curve Weekly because I want to know what's coming on and I want to
• 0:53
  update more so than ever before. I think most of the time, even if it's massive news, I somehow
• 0:58
  managed to miss it on every, you know, I'm not looking for it, but this, there was no way I could
• 1:04
  miss it, like the amount of messages that we got, or even from friends, messaging me being like,
• 1:09
  what platform do you use? I want to start investing like blah blah blah. I was like, wow,
• 1:13
  like I spent my Friday night, no shirt, cleared the decks, got my laptop out and was like going
• 1:18
  through the investing club and all of our investing perks, ordering them into what I wanted to put
• 1:24
  money into, searching each share and seeing how much it's like gone down in the last few days,
• 1:30
  and then just like, honestly, went on a shopping spree. It was like the most anti-social thing ever.
• 1:35
  I was, I'm over in Australia right now visiting friends and they had friends around for dinner
• 1:40
  and I was in the corner on my laptop. This is just our, our weird friend, who is that? Who am I?
• 1:47
  No, but like, fair enough, take advantage of what's going to be probably something that
• 1:52
  happens maybe every five years. Like, of course, I'm sorry, I'm going to sit in the corner,
• 1:56
  I am not going to be participating in dinner for one night, because this is an opportunity of a
• 2:00
  lifetime. And I had to put my like, oh my god, you're such a fine ex-probing, like, oh,
• 2:03
  yep, okay, cool. Yeah, I'll just put the ordering out. Yeah, honestly, it's for another tent.
• 2:08
  Okay, buy me a hundred shares. Oh, yeah, put more in. I was having a full, I had to be
• 2:14
  boundary. I had to be like, I'm so sorry, I don't know, I'm being rude right now and I will
• 2:17
  rejoin the conversation in a minute. Like, I was, I wasn't even entertaining, like, a part-way
• 2:22
  chair of, oh, yeah, yeah, yeah, this is my name and nice to meet you. I was just like, I'll be out
• 2:27
  for half an hour. So yeah, but do you know what though? Interesting, Lane, when I then went into
• 2:32
  the invest in club and saw a lot of people had posts being like, just sharing their thoughts on
• 2:36
  what they were thinking. It was only then that I started getting anxious and started panicking.
• 2:42
  I was really excited, confident in my choices and the things I wanted to invest in.
• 2:47
  And then as soon as I started hearing other people's thoughts or, like, seeing snippets of things
• 2:52
  online, that's what shook me. Yeah. It was really interesting, like, from a psychological standpoint,
• 2:57
  I was like, so sure of what I was doing. But then as soon as I had outside influence. That's not
• 3:02
  what we want the club to do. No, but I mean, it was like, some people were really scared about what's
• 3:08
  going on. Yeah. And we're like, feeling really sorry for businesses and like, I don't know.
• 3:12
  So for anyone who's like, what the hell are you guys talking about? Oh, yeah, fair.
• 3:15
  Well, we've done no setup. So Donald Trump announced on the end of last week that he was going to
• 3:24
  effectively stop globalization as we know it. And globalization just means the ease of movement
• 3:30
  of products around the world. You know, it's everyone, every country leaning into their strengths
• 3:35
  and producing what they can at the best possible price so that the rest of the world can benefit.
• 3:40
  So if you think of like Germany is known for like, it's auto manufacturers, for example. So,
• 3:46
  you know, a lot of cars, car companies are headquartered and manufactured in Germany,
• 3:50
  and distributed around the world. If you think of China, it's like, it's tech, you know, or there's a lot
• 3:55
  of a lot of Asian countries can produce products at a much cheaper price in the rest of the
• 4:02
  Western world. And that is meant that we've benefited as a global economy,
• 4:08
  from being able to purchase cheaper goods because he runs, leaning into their strengths.
• 4:14
  And that also means that like smaller, more underdeveloped countries like Bangladesh,
• 4:19
  Cambodia, like all those countries actually have a really empowered workforce that can,
• 4:24
  it can help the economy. So this is kind of what's been going on for the last 20 plus years,
• 4:30
  as every country has leaned into their strengths. And what Donald Trump has done is he has said,
• 4:36
  you know what, I've had enough. There is too many jobs that are being lost to other countries
• 4:42
  and not given to Americans. So Apple, for example, manufactures a lot outside of the US.
• 4:50
  But therefore he's like, you know what, that's an American company. Those products should be made
• 4:54
  in America. Nike, for example, you know, nearly 80% of its products are made offshore. And he's
• 5:01
  like, no, you know what, you're an American company. I want that back in America and I want
• 5:05
  that to lead to more jobs for Americans. And so this is what he's tried to effectively unwind.
• 5:11
  He's being a selfish prick. He is, and his whole preface is like, make America wealthy again.
• 5:15
  So this is why it was called Liberation Day. He announced tariffs on over 100 countries.
• 5:21
  It's just so dramatic, isn't he? Like, are you joking? Like, why are we calling it a some stupid name?
• 5:27
  It's like every economist and every person knows that globalization is great for the world.
• 5:35
  So anyway, the reason the stock market fell and had a really big fall on Thursday and then
• 5:40
  again on Friday, and it looks like it will this week is because people were like, oh gosh,
• 5:46
  those tariffs were way bigger than expected and covered a lot more countries than expected.
• 5:52
  So it was kind of everyone, you know, he'd been talking about tariffs. We'd been talking about tariffs.
• 5:56
  But the shock factor for the stock market was, oh my goodness, what does this mean for the future?
• 6:04
  And the future for companies, the future for countries, the future for people, consumers,
• 6:09
  people buying these products. And so this is kind of what everyone's trying to understand now.
• 6:13
  Does it mean all those countries will move their manufacturing and supply chains to America,
• 6:19
  or will it just mean higher prices and they'll stay in those countries?
• 6:22
  Only shit. So do you reckon people like that could actually happen? Like, America might end up
• 6:26
  being the most wealthy, independent financial nation in the world way more so than it has been
• 6:32
  before? Well, that's what they're hoping. So if you take like Lululemon, for example,
• 6:37
  so Lululemon Apple and Nike, some of the biggest, the companies that were hit the most in terms
• 6:42
  of their share price for because they're the companies that have the most offshore production
• 6:48
  in terms of their products. So if you take Lululemon, for example, they'll be sitting there going,
• 6:52
  okay, China has just been hit with a 34% tariff. So now, anything that leaves China and comes
• 7:00
  into the US for us to sell, but anything we make in China now we want to sell on the US is 34%
• 7:06
  they'll be sitting there going, if we moved all that manufacturing to America and it was only
• 7:12
  they 25% more expensive because of higher wages and all of that, that's a good outcome
• 7:20
  because we're paying 34% more or 25% more. So this is what's going on behind the scenes,
• 7:25
  all these companies are going, okay, if we move our supply chain to America and our manufacturing
• 7:30
  all of that and it's probably going to be more expensive but not as expensive now as these tariffs,
• 7:34
  then that's a good outcome. So this is what he's, what Trump's doing is he's, you know, he's
• 7:39
  made them high enough that companies are going, oh gosh, it is not worth our wild to be manufacturing
• 7:45
  in those countries. Vietnam, a 49% tariff, like Nike had literally just shifted tons and tons and
• 7:54
  tons of its manufacturing to Vietnam because it was worried about tariffs on China and now Vietnam
• 7:59
  has been hit. So like these poor countries, you've got Nike, which employees, thousands of
• 8:03
  thousands of people in those countries will probably leave. And so yeah, it's like, what will
• 8:10
  happen? Will there be retaliation and therefore your US will back down and Trump will be like, okay,
• 8:16
  just joking, sorry. I don't reckon he will. I feel like it's too major. I feel like it's too
• 8:20
  far gone now. Yeah, okay, he can't back down. There's poor companies, it's like they're trying to,
• 8:25
  okay, we'll do we actually action moving our manufacturing or will he come out next week and say
• 8:30
  just jokes. Oh my, just jokes. I was also interesting. I spoke to a few friends over the weekend who
• 8:35
  have New Zealand businesses. And so the tariff on New Zealand is 10%. So not too bad. And actually,
• 8:42
  the biggest winner out of this is the UK. So the UK tariff is only 10%. But the EU is 20%.
• 8:51
  So the UK is sitting there going, thank goodness for Brexit because we would have been slept with
• 8:57
  the 20% tariff whereas now it's only 10%. Oh my God, it's like the first time really in years
• 9:03
  that people are like, thank God for Brexit. Yeah. And so 10% looks like nothing, that's nothing,
• 9:09
  you know, in the scheme of things with countries that have got 49% tariffs. And so
• 9:13
  anyway, I was talking to friends in New Zealand that have New Zealand businesses. And they were
• 9:17
  like, look, we manufacture in China. But the business is in New Zealand. So if we manufacture in China,
• 9:23
  if the stock comes to New Zealand and then goes to US, you get slapped with the Chinese tariff
• 9:29
  as well as the New Zealand tariff. So that's now 44%. That's not 34%. And it doesn't matter
• 9:34
  where the place is headquartered. So it's weird, you manufacture. Oh my God. Also, the other
• 9:40
  one is out of all this is going to be the tax consultants, the, you know, all those lawyers that
• 9:46
  are involved trying to shift company locations and stock and assets to try and get around this and
• 9:51
  make it, you know, the best possible outcome for for companies. But at the end of the day,
• 9:56
  it dreams higher prices. What are the top countries that have been slapped? Like what are the,
• 10:00
  what's the worst, like down to the least harsh? Yeah. So Vietnam, so 46% Vietnam,
• 10:08
  44% Sri Lanka, Myanmar's, 44% Madagascar. Why all those Asian countries getting so slammed?
• 10:16
  Because a lot of the big global companies have moved manufacturing to the likes of Vietnam.
• 10:22
  So he's like, you know what? I'm going to slap you with, yeah, but that's why
• 10:25
  your friends coming out of this going, that's really unfair. You're hitting these countries,
• 10:29
  like just because you in China have a tip for tap going on in the EU now. Don't hit these hard,
• 10:36
  you know, there's small countries that are just trying to grow their economies. Other countries
• 10:41
  like Japan, 24% India, 26, Thailand, 36 and Indonesia, 32. So there's like, there's a big
• 10:50
  increase in price. That's, you know, something that's worth $100 is now worth $132 that was made
• 10:58
  in Indonesia. So it's actually, people have seen, there's been news of people running into Lula
• 11:04
  Min stores and buying cheap tights and iPhones and like soy sauce and like all of that because all
• 11:12
  the prices are going to go up. I'm like, okay, right, chill, chill, chill. Oh, it's COVID toilet paper
• 11:16
  times too. Yeah, yeah, but they're not wrong. It's like, literally, the prices are going to go up,
• 11:23
  whether that's because companies have to move their operations, which will take years or whether
• 11:27
  it's because literally in a few days time, this is when these tariffs come into play, the prices
• 11:33
  literally will have to go up because like you, you put it is really good analogy. It's like a
• 11:37
  door charge. All these Lula Min pants coming into the US are going to have to pay a door charge
• 11:43
  of nearly 40% more. So I just think if you were a company, like say you were Nike and you did all
• 11:49
  of your production in Vietnam, if Trump's only in power for four years and it takes you two and a
• 11:55
  half, three years to move everything. Is it worth it? Like because surely whoever comes into
• 12:03
  power in the US next is going to solve that out. You can't imagine this is going to be a,
• 12:08
  or do you think that this is something that could stay for a long time? Well, there's actually
• 12:11
  talk of him running for a third term, trying to change the constitution because you can only run
• 12:16
  for maximum two terms in America. So, but this is what's caused. There's been rioting in the streets
• 12:21
  in New York. I saw photos from friends of people going, this is not a democracy anymore.
• 12:27
  This is a dictatorship and this is Trump and his billionaire friends controlling the US and
• 12:33
  controlling the world. And we're not here for it. This is not what we signed up for. And so
• 12:38
  there is a big backlash that is happening. But like obviously there's going to be a backlash.
• 12:42
  But there's been backlash this whole time and it hasn't stopped him doing any of his stupid shit.
• 12:47
  But yeah, it's it's a major headache for small businesses, big businesses, small countries,
• 12:52
  big countries. But at the end of the day, it's American consumers that'll end up paying higher
• 12:58
  prices. And that leads to inflation. And that means that our money doesn't go as far because we're
• 13:06
  having to pay more for more goods. Like it's, do you think if I make it like sweat shops and bad
• 13:14
  treatment of people who in some of those Asian countries are producing, I don't know, quite
• 13:20
  shit quality products that are being, like they're being, it's essentially slave labor. Like is
• 13:26
  that a good thing that it's being moved in terms of like, I don't know, I just imagine a lot of
• 13:33
  these big companies are not treating or paying people from like a social governance standpoint.
• 13:41
  What what they should be is that a potential, what's like it was moves to America and
• 13:46
  there'd be more strict regulations on how stuff is produced. I don't know, I'm trying to look for
• 13:51
  silver linings here. I know, I know. I think there's there's ways to combat that without
• 13:58
  removing all the manufacturing or all the jobs from that country. There's these ways to put rules
• 14:05
  in place, being like, this is the set of standards that we will have when we're going to employ
• 14:10
  a factory to make our garments. For example, I think there's more detriment to a country saying,
• 14:15
  we're not going to invest in your country, we're not going to invest in jobs at all, then invest in
• 14:21
  saying, look, this is the minimum wage we'll pay, this is the minimum standard of workplace that we
• 14:26
  will have. You know, like I think there's ways around that and I think there's been so many big
• 14:30
  businesses where they've had, they've had blowups because of that. Like PR absolute disasters and
• 14:37
  brand damage that the standards have been set and the regulation has been enforced. I think
• 14:44
  the detriment of removing thousands and thousands of jobs from Vietnam or Cambodia, for example,
• 14:51
  would have much more impact, bigger impact, negative impact on those countries than putting a
• 14:58
  regulation in place saying, look, this is the minimum wage we're going to pay. Like if you think of
• 15:02
  China, if you go back 20 years, China was not as prosperous as it is. It didn't have the GDP
• 15:09
  growth, the growth to domestic product, which is kind of the measurement of economy's growth,
• 15:15
  like a net worth of a country. Yeah, yeah, it didn't have, it was, you know, it was not growing
• 15:21
  and it was not as big as it is today and that's because Western countries were investing in China
• 15:27
  because of the cheaper labor, not cheap labor, cheaper relative to the US and to Britain and to
• 15:33
  New Zealand Australia. And therefore it gave people opportunity and it gave people jobs
• 15:39
  to therefore spend that money within the economy and to help it grow and to invest in
• 15:44
  property and spend to be more productive. And so, I don't know, it's kind of like giving
• 15:49
  interns a chance. You know, if you think of like these developing countries as interns and
• 15:55
  you know what, you've got great potential. I'm not going to pay you because you don't have the
• 15:59
  experience of a CEO, but I'm going to invest in you and I'm going to put my time and effort and
• 16:07
  pay you a smaller amount. And then you're going to become more skilled, you're going to become more
• 16:13
  developed and therefore you can charge more. And that's what's happened with China and that's
• 16:17
  why other countries are going to Vietnam and that will happen to Vietnam eventually and then
• 16:21
  we got to going to other countries. And so, you know, we do see it happening and we have seen
• 16:26
  it happening over the last 20, 30 years. And so, okay, so then what have we seen the markets,
• 16:31
  what's happened with like the stock markets around the world? Can we do a bit of a like, okay,
• 16:36
  this is the US, this is the UK, like all the main centers? Yeah, I mean, all of them were down
• 16:43
  from Asia to Europe to the UK and New Zealand Australia. And it's so funny when you see because
• 16:51
  obviously with the time difference, like stock markets aren't open all day. So,
• 16:55
  New Zealand is the first to open in the world on a Monday with the first stock market to open.
• 17:00
  And just like Gizzy's the first place you see the sun at New Year. Exactly.
• 17:07
  Yeah, I wish it was like we could predict what was going on in the stock market because we'd
• 17:10
  like, oh yeah, yeah, you love them. So, we are kind of, we kind of see the scene, we almost
• 17:16
  kind of just follow the day before if that makes sense. But anyway, it does give a bit of a
• 17:20
  prediction. So, if I look at the stock market today, down 4%. You know, that's a prediction that
• 17:27
  all the other stock markets are going to have really, really bad days. But is that down 4% from
• 17:32
  yesterday or from like when? From yesterday. It's gone down 4% from yesterday. Yeah, it's now down 10%
• 17:39
  this year. What was it on Friday? What did it go down? Not much at all because this was kind of
• 17:45
  unfolding when our market was closed if that makes sense because because we close and then the
• 17:51
  others stay open and then it closes. So, it's like, but I guess what I'm saying is like there's
• 17:55
  stock markets that open throughout the day. Whatever would have a day you're in, if you're in the UK,
• 17:59
  if you're in New Zealand. And so New Zealand opens in Australia, then Asia, then Europe. And so,
• 18:05
  but the US is the big one that everyone kind of focuses on because obviously it's one of the most
• 18:09
  impacted. It's the biggest stock market in the world. So, it is the one that kind of moves the
• 18:14
  needle for the rest of or the rest of the regions. But Thursday, really bad day, it was down about 4%
• 18:19
  Friday, down about 5%. Today it'll be down again. What I'm trying to figure out is if I had a
• 18:24
  total mayor investing on Friday and I should have waited till today. No, because nobody can pick
• 18:30
  the bottom of this. Do you know what I mean? So, he could have come out over the weekend. Just
• 18:34
  keep investing. Yeah. Or people could have realised you know what's actually falling a lot and
• 18:38
  there could be some news that comes out between now and in a few hours time when it opens up.
• 18:43
  And then you'd be like, damn it, I wish I bought more. So, it's more, it's more just being strategic.
• 18:48
  And just if you are buying in this environment, just keep, you know, just keep buying almost
• 18:52
  dollar cost averaging, but like, daughter, I wish I had done that. Because I just got, I got
• 18:59
  really excited and I put all my money in on the Friday. Nice. That's all right. Because I was
• 19:05
  just like, oh, exciting. It's gone down. I mean, I was buying and I was buying in March and now
• 19:11
  I'm like, oh, damn it. You know, I should have waited, but you never know. So it's like, yeah,
• 19:16
  but anyway, it was the biggest fall since since the pandemic. So, you know, when we talk about
• 19:23
  these opportunities not coming around very often, this is a once in a five year opportunity,
• 19:28
  really. And if I think back to my mind to the pandemic, it was I wish I'd bought more.
• 19:34
  So I'm trying to channel that. Yes, this is different in markets fall for always different
• 19:40
  reasons. And this, there's probably a, in terms of uncertainty levels, it's probably, I guess,
• 19:47
  it's not as scary as it was during COVID. Nobody really had been through a global pandemic
• 19:51
  like that before. We haven't been through a really crazy, you know, president in the US before
• 19:57
  when we had actually when we kind of have, I mean, he's maybe been in power before.
• 20:02
  Yeah, but he didn't get much through last time. Does this much more impactful globally?
• 20:08
  Well, it feels like it anyway. And I think it's also there's nowhere to hide. Do you know what I
• 20:13
  mean? It's not like the US is falling and all the other countries are doing well. Every single
• 20:18
  country here pretty much has been impacted. Every single industry is being impacted. And so it is,
• 20:25
  I think the difference with this is this is very widespread. You know, we did have companies
• 20:30
  during the pandemic that were doing really, really well. And we will have companies during this
• 20:34
  that they're doing really well, but it's just hard to see which ones those are right now.
• 20:38
  Do you reckon we could do one of the workshops in the club on that specific topic? Because I'd
• 20:44
  loved, I know we did that workshop about how now is like a great time to buy and it's on sale and
• 20:49
  bloody day, but it would be, I would love to do a deep dive on like even if it's not stocking
• 20:54
  investment ideas that we've looked at in the club already, a bunch of ideas that are
• 21:00
  a safer bet than some of the other companies right now because there are ones, I mean, you speak
• 21:09
  about this a lot like recession proof stocks or like just thinking about it differently because
• 21:13
  I know for me when it came to like buying on Friday night, I bought a couple of indexes,
• 21:19
  I bought some stocks that I've wanted to buy for a while and they were things that we've already
• 21:22
  spoken about, but I wasn't really thinking, I was just thinking, I trust in this company,
• 21:28
  I trust in the stock. Like for example, zero was when I invested in and we'd spoken about it in
• 21:33
  the club and I was like really on board with it, but I was just thinking it's gone down because
• 21:38
  everything's gone down. I didn't think, I don't know, it would be helpful to go beyond that,
• 21:43
  do you know what I mean? Be like, okay, this is what tariffs are doing, these types of companies
• 21:47
  are going to find it really hard and I imagine it's going to be, yeah, I don't know. It's just
• 21:52
  so much to think about, it's like a lot to process because then also my brain starts going to,
• 21:57
  okay, well if Nike is doing terribly and their share prices absolutely down the toilet,
• 22:03
  maybe it is actually a good time to buy because they are, if I think that they're going to
• 22:06
  sort it out or do you know what I mean? It's like do buy the recession proof companies or do you
• 22:10
  go for the ones that are actually being hit the hardest? I think it's if anything to take away from
• 22:16
  this, it's like making sure you're diversified because I don't know, do you know what I mean? I
• 22:22
  don't know if Nike tell me though, but do you know what I mean? It's like, it's buying tech companies,
• 22:30
  it's buying retailers, it's buying recession proof stocks, it's buying because we don't know what
• 22:35
  the world would look like in the next 12 months or the next two years. Will America come out of
• 22:41
  this way, way stronger and actually be this incredible economy that's just dominating the world
• 22:49
  because everything is being produced there. If that's the case, then you would double down on
• 22:53
  America and you'd be like, you know what, I'm going to own the S&P 500, that's all I'm going to
• 22:56
  own, I'm going to own American stocks. If you think it's going to have the adverse effect,
• 23:00
  the rest of the world's going to band together and become, you know, really strong and be like,
• 23:05
  if you America and America's going to have inflation out of control and go into a recession,
• 23:10
  then you'd be buying global stocks. So it's so hard to know and I think, it's changing
• 23:16
  every day. So I think if people are sitting there going, oh my god, I'm so confused, I don't know
• 23:19
  what to do. I'd just say, almost keep doing what you're doing and just make sure you're diversified.
• 23:26
  So if you are only invested in the S&P 500, maybe buy some, you know, global ETFs or some
• 23:32
  some more global stocks, that's actually something that I bought was the global index.
• 23:36
  If you've only got tech stocks, maybe buy some recession proof stocks, maybe buy some retailers
• 23:43
  that have been hit a lot because, you know, depending on the situation, but usually companies
• 23:48
  have been hit the hardest of the ones that rebound the quickest as well when we go back to normal.
• 23:52
  But that's a thing, when are we going to go back to normal? So I don't know, there's lots to,
• 23:55
  there's lots of things that I feel like even when this podcast comes out, there'll be like
• 24:00
  updates that, you know, it's changing every day, but some of the winners from all of this
• 24:07
  is the UK, like we've mentioned, that, you know, being like thank goodness for breakfast.
• 24:15
  So maybe actually then if you were wanting to diversify from a geographical standpoint,
• 24:20
  it would be looking at an ETF that is maybe a UK base, like the FTSE, whatever it's called,
• 24:27
  100. FTSE? 100? FTSE 100, yeah, yeah, yeah, definitely. Is that gone up or has it also gone down?
• 24:33
  It's not gone down as much. Yeah, okay. So it's all gone down. It's doing badly, but not as badly.
• 24:40
  Doing less worse. Less worse? Less worse. Love it.
• 24:44
  The Curve Investing Club is the world's first digital investing club for women to build their wealth.
• 24:50
  It's a place where industry experts like myself and beginners can really, really join forces to
• 24:56
  share knowledge, swap ideas and make money through investing. So if you're listening to this
• 25:00
  podcast, you probably are aware that saving alone unfortunately can't make your millionaire,
• 25:06
  but investing definitely could. So we wholeheartedly believe in the power of community in that
• 25:11
  the best investment ideas come when we collaborate and learn with each other. So bring your friends,
• 25:17
  your mum, even strangers on the street if you want. There really is strength in numbers,
• 25:23
  and we're so excited to create a community that's just for you.
• 25:29
  One thing also, as soon as I started coming out in the market started falling, I immediately
• 25:34
  thought of my parents and I was like, their retired admittedly they shouldn't have a lot in
• 25:39
  shares to be honest in terms of their investments, but they have to live off their investments.
• 25:44
  And now they've just seen their pot, their pot they're supposed to live off shrink.
• 25:50
  And how scary that must be. And so this is a really good example of why we say,
• 25:56
  if you're getting closer to your goal or you're at your goal, whether that be buying a house,
• 26:01
  retiring, you know, if you were about to buy a house and you had all your money in shares,
• 26:07
  you'd be really upset right now. And there's nothing you can do about it. So this is why
• 26:12
  we, this is like case in point where we say, you know, the closer you get to that goal,
• 26:17
  the more you should be investing in lower risk things. So term deposits, you know,
• 26:22
  you're putting, putting money in things that don't move around because this will impact the
• 26:28
  amount that you will have to live off or to spend on that house or anything like that.
• 26:33
  It's actually a really good point because I have seen a lot of stuff online of people,
• 26:37
  they were talking about the, like the millions that they've lost in a version of commerce,
• 26:41
  because obviously they haven't sold their investments, they haven't actually lost anything,
• 26:44
  but I can't imagine, I can't imagine what that would feel like. And you know, because I've taken
• 26:51
  my money, a lot of my money out of the stock market, because I've been wanting to buy a house,
• 26:56
  I, yeah, like I haven't seen. And also even to be fair, even if that money was in the stock market,
• 27:02
  it wouldn't have been a giant drop because it's nothing compared to what some people have invested.
• 27:07
  If you've invested your whole life and you've got to 70 and you've got most of your wealth,
• 27:12
  yeah, and high growth stocks and then you saw like half of it is lost overnight. I can't even imagine
• 27:18
  how stressful that would be. And you're also withdrawing from that amount, right? So you're now
• 27:23
  withdrawing money to live on at a lower, a lower price, you're having to sell at these lower prices.
• 27:30
  So it's, I think, don't be panicked and like the feel the need to, I guess, make a really
• 27:37
  knee jerk reaction right now, because you know, you could be making a mistake if you're like,
• 27:42
  I just need to sell something because it could go down further. Like just stick to your plan,
• 27:47
  like, you know, your investment plan, I think is, it's just try not to read their headlines. Yeah.
• 27:54
  And remember, markets always rebound. They rebound 100% of the time. So it's like just, it's,
• 28:01
  I think if you're struggling, if you're struggling and feeling scared and wanting, you just have,
• 28:06
  you just need to actually turn off all new alerts, yeah, only listen to the girl podcast.
• 28:12
  Or even don't listen to the podcast, you know, like even that might send you over the edge. And if
• 28:16
  it does, you have to know yourself and do the things, they're going to like keep you in check,
• 28:22
  get your emotions, keep your like reactions at in a place where you know you're not going to
• 28:28
  look back at because you've said so openly and you said this on the workshop that we did a few
• 28:31
  weeks ago during COVID, you massively regretted selling at what you sold. You were like, oh my god,
• 28:38
  why did I do that? And so I think it's like, we learned from those mistakes. We can learn from
• 28:42
  the fact that you've been there. There was a global pandemic. The world was locking down.
• 28:49
  We've bounced back from that. More so. We've bounced back like even even bigger bounce. Yeah.
• 28:54
  God, it is so weird though. I'm kind of, I feel like I should have worn a blazer too.
• 29:01
  Like this is huge, you know, we'll look back and be like, remember on the seventh of April 2025
• 29:07
  and we had that podcast, like it is. It's so exciting to know what's going on.
• 29:11
  It's funny. There was someone in the club that said they just commented that like, keep calm and
• 29:15
  carry on. I was like, so true. I mean, I used to hate that phrase, but it's so appropriate right
• 29:23
  now. I was like, I lost that energy. Just to round out this kind of tariff discussion,
• 29:29
  there is one company that Trump has said, you know, that is almost being the porn in this game
• 29:36
  between China and the US and it's TikTok. Oh no, not again. You know, we've been in discussions
• 29:43
  around how TikTok needs to sell its US operations and Trump has said he will look at cutting tariffs
• 29:50
  to China if TikTok sells to a US company. No. Imagine being that business that like the whole
• 29:57
  nation depends on your decision making. I was like, the pressure. I would hate that. So
• 30:03
  oh my god. So sorry. So for anyone that's missed it, TikTok has, Trump has been, he's had a
• 30:12
  beaners bonnet about TikTok for a long time. He feels like it's breaching, you know, national security
• 30:18
  blah, blah, blah. It's like they're spying on the US, all that kind of stuff. And obviously,
• 30:23
  like met her in other big tech companies are based out of the US. TikTok is the one outlier.
• 30:28
  So he feels like he doesn't have control over it and he wants it. So the whole sale around,
• 30:33
  they're basically carving out the US. So he's that the TikTok is like, they're not going to sell
• 30:38
  the whole business, but they're kind of in a position where they sort of feel like they have to sell
• 30:42
  the US side of it. And there's someone trying, they're trying to figure out who's going to buy,
• 30:47
  right? They've had all sorts of different bidders, including Elon Musk. And basically, are you
• 30:52
  saying Trump has said, if you sell the US part of TikTok to a US company, we will loosen the tariff.
• 30:59
  So do you reckon he's doing all this tariff shit purely because of TikTok? Not purely, but
• 31:05
  it's like, it's a good time to be, you know, have that dick of cards or you know, to have that,
• 31:12
  have that up your sleeve to be like, well, you know what you can do. You can sell your operations.
• 31:18
  And this can all go away. This is like blackmail. Oh, it's total blackmail. Oh my god,
• 31:23
  imagine if the world's economy relied on your decision. Imagine the pressure. Oh my god. I could
• 31:30
  not deal with that. Also another IPO that's coming. Now, actually, we need to pause before we talk
• 31:36
  about IPO because there was actually a comment that came through. We've been encouraging people to
• 31:41
  comment wherever they're listening to the podcast. And someone commented, Gina, and I love
• 31:47
  this that she commented this. She said, I'm a first time listener here. I'm not sure what IPO or
• 31:51
  SEO means. Could you explain any abbreviations in your descriptions, maybe? And I thought that's
• 31:56
  a really good idea because then we can avoid having to like always backtrack and say, an ETF is
• 32:03
  this or a blah, blah, blah. And we can just have a little disclaimer at the start of the episodes.
• 32:07
  If you're new and you want to keep up and you want to know what's going on, we can put almost
• 32:11
  like a coding in the podcast show notes so that people can be like, what is that and go and check?
• 32:17
  Is that genius? Love that idea. And thank you for saying that because it's like the last thing
• 32:23
  we would want is for people to be listening to a podcast think that they don't understand and
• 32:26
  then never tune in again. But at the same time, it's like, you don't want to constantly be going
• 32:30
  over the same stuff that so many people do know because they've been listening for a while. So
• 32:35
  we're definitely going to do that for this episode and ongoing so that anyone can join the
• 32:40
  conversation. But IPO means initial public offering. And it means when a company first becomes public.
• 32:47
  So a lot of companies start out as private companies. You can't really invest in the net easily.
• 32:51
  And then when they become public, that's when you can buy them on the stock exchange or through
• 32:54
  shazies or whatever training platform you use. So she in is a company that's been talking about
• 33:01
  IPOing for ages. Thanks sparkles. Thank tight. Thank mesh. Thank Clevage. Thank tight roost buttocks.
• 33:13
  And it has been talking about IPOing in London. Oh my god. It's a great time for them to IPO in London.
• 33:20
  No, not to us. Well, the prices of all their goods have just absolutely skyrocketed. Oh no.
• 33:29
  So their whole business model is low cost, direct shipping. And now that's just like the
• 33:36
  tentacles. Yeah. And now it's just completely unraveled. So as an investor, I would not be
• 33:42
  investing in she and right now. And when you IPO, you want as much demand as possible. You know,
• 33:47
  this is your one time to like come out and like sell yourself and get, you know, the highest
• 33:54
  valuation you can. Is this like the only company that's IPOing at the moment? I feel like
• 34:00
  there must be so many. But we've talked about this one heaps. Why is this one like quite an
• 34:04
  interesting one? Because nobody wanted it. Oh my god. It's like, it's like lady Heatherington
• 34:10
  in Bridgeton. You know, no one wants to put their name on her dance card. And she's going around
• 34:16
  and everyone's like, no, not for me. Yeah. They're like, well, you have a stock exchange?
• 34:20
  You're like, no, will you have us? Oh, it's quite good. It's because the operations have been
• 34:26
  subpar and yeah, that's why I know I want some because of the PR disaster and like the brand
• 34:32
  reputation. We don't condone their behavior. And therefore they're being publicly punished.
• 34:37
  Yeah. And so anyway, also, you're right. This is the only IPO I've been talking about. But
• 34:43
  this will become IPO pipelines now. IPO, you know, companies coming to IPO will be very, very quiet
• 34:50
  with the market doing what it's doing. It's instantly like dries up. Everyone's like,
• 34:54
  oh, no, no, no, I don't want to. It's like someone's got an egg and your vagina is just gone
• 34:58
  inverted. Sorry. I didn't realize you're going to say that at the time. I made this up.
• 35:08
  Can I just say one thing? Yeah. No, I was at a festival a few weeks ago and someone in the crowd
• 35:14
  started talking to me about how private equity is the way to go and so many companies are not
• 35:19
  going to be publicly, they're not going to be public. And then actually, there should be some
• 35:25
  conversation around funds and making funds that are like private equity. So as a public
• 35:31
  companies, more accessible for people like you and I who are wanting to invest in them. And
• 35:36
  I was like, that's kind of interesting. And it did make me think about the fact that there's
• 35:40
  been hardly anyone that wants to go public anymore. Maybe that will be like a future investment
• 35:47
  strategy where some people have money in the public stock markets. But then also some of us want
• 35:52
  to put money in private companies too. Yeah. There is it's definitely evolving. Like it used to be
• 35:58
  harder for us to even buy public companies. Do you know what I mean? Before trading platforms were
• 36:03
  a thing, it was very difficult to buy public companies. You did it through a bank and you paid
• 36:07
  ridiculous fees or you had to invest through a fund manager. So that's got a lot easier. And then
• 36:12
  yeah, you're right. It's just going to become easier to invest in private companies. I think
• 36:17
  there just needs to be aware of the risk. A lot of private companies are more early stage,
• 36:22
  they're the newer. They haven't been around for as long. So therefore, there's risks of that. They
• 36:26
  haven't weathered economic cycles. Yeah, but this guy, to be fair, this was in a festival at
• 36:31
  like 11 pm at night. But he was saying, there's like great returns. He was like, summer's like
• 36:37
  20%. I was like, yeah, you just can't, you just, you put your money in and it's in there for
• 36:43
  fire. You can't touch it. But I thought, fine, I'd be fine with that. If I was going to be getting
• 36:48
  a 20% return, I'd be like, sweet. Yeah. Yeah. Anyway, that's a conversation for another time.
• 36:53
  Conversation for another time. Yeah. The average is 20. There's a lot that don't do all this
• 36:58
  all. You know, what does it 90% of startups fail? Yeah. Yeah. Anyway, not to put a dampener on this,
• 37:04
  but moral of this podcast. Keep calm and carry on. Keep calm and keep investing. Yeah. We change it.
• 37:12
  Oh my gosh. Do you do what happened? Sorry, just to go back to the festival, the one that I was
• 37:16
  talking about before, something in the park. Have you been to it? It was amazing. No, I have heard
• 37:21
  it's amazing. It was amazing. It was like a live orchestra. Anyway, this one girl came up to me
• 37:26
  in the crowd and she said she was like, I wanted to just say I wrote this on my notes on my phone
• 37:31
  because I thought it was like so amazing. She was like, I just wanted to say the curve has changed
• 37:37
  my life. She was like, I'm a really qualified person. Like, I'm smart. I've got a really good job.
• 37:42
  The curve has changed my life and my children's life. Like, thank you so much. And she like had
• 37:46
  tears in her eyes and I was like, oh my god. I was honestly like, I'm writing that in my phone.
• 37:52
  That's like a moment to remember. If you're listening to this and you're thinking, maybe this is
• 37:57
  one of the first few podcasts you've listened to and you feel overwhelmed and we have used a bit of
• 38:01
  jargon. I'm really sorry if that's the case. But promise, the whole point of the curve has been
• 38:06
  to create conversations that are easy to understand. And we're going to make sure that we still
• 38:12
  like create content that if you are a beginner, you can keep up because it is the thing if anyone
• 38:17
  can learn. So it's yeah, it was just one of those moments where I was like, holy shit, we as a
• 38:22
  community and as a podcast and as everyone listening have come such a long way and I reckon there
• 38:27
  would be a lot of people who follow the curve and listen to this podcast who when these stock
• 38:32
  markets have been turning to shit have not been panicking. I would say a lot of people have been
• 38:37
  thinking I should be buying so good to say I love it. Absolutely love it. So good. I was going to
• 38:43
  go down Oxford Street and film me going into sales, create a little real me going into sales.
• 38:48
  That's genius. Can you go do that please? You were on leave and so was social media girl and I was
• 38:53
  like, oh my god, I feel so out of my depth. You know, there's so much going on. I don't know what
• 38:57
  to do. That's a genius idea. You should have done it. I know. You're great at tech talk.
• 39:02
  You are to queen. I reckon I reckon you should get more into it. Like when you do your
• 39:07
  like mouthing ones, I'm like, oh, it gives Alex group energy. I really think you need to double down.
• 39:12
  I'll do it. Get ready with me. Get ready with me. I talk about Trump's tariffs. Anyway, I'm
• 39:18
  loved it. Thank you. Also for anyone that wants to make sure that you're always up to date with
• 39:22
  the news and what's going on, we'll put a link to our newsletter and our podcast show notes
• 39:27
  because it's such a good way to just make sure you're keeping the up to date with what's happening.
• 39:32
  And also, if you're listening to this and you're thinking, gosh, I'd love to like start investing.
• 39:36
  I want more investing ideas. Join the investing club. It's such a good time to feel like you've got
• 39:40
  community and like a bit of guidance from Vic outside of the podcast and people are talking about
• 39:45
  what they're investing in, what they're not, what they're not. It's like times like these is when
• 39:49
  it's really humming. Yeah. I might screenshot what I invested in and share it in there. I just do
• 39:55
  a little because I think it's quite nice to know what other people are doing.
• 39:58
  Yeah. Anyway, speak to you soon. Thank you for all your research.
• 40:02
  Loved it. Not worries. Me too. Okay, bye. Bye.
• 40:05
  Thank you so much for listening to the Curve Weekly. Make sure you hit the subscribe button
• 40:09
  to stay up to date with all the many business stock market news. And if you like what you heard,
• 40:14
  we would love a review. Thank you. Yes. We would love a review. But if you didn't hate it, please
• 40:19
  yeah, don't leave one if you hate it. No, but in all seriousness, could you please leave a review
• 40:23
  because it really helps other people find your cute little podcast. And we hope you have a good
• 40:27
  week and see you next Monday. Bye. Bye. See you next Tuesday. Well, see you next Tuesday. I mean
• 40:37
  Monday. No, actually though, new episodes out every Tuesday.
• 40:44
  Okay, quickly, the Curve was created to empower and educate you about investing, but we are not
• 40:49
  financial advisors. Our platform exists for educational purposes only and it doesn't provide
• 40:54
  personalized investing advice for your individual needs and should not be relied upon to make
• 40:58
  an investment or financial decision and always remember to do your own research before making
• 41:02
  any investment or financial decision. We're here for any knowledge and support you need, but the
• 41:07
  final call is always yours. And thanks for being here. You got this. Yeah, we know you got this.