Market MakeHer Podcast – Détails, épisodes et analyse

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This Week in the Stock Market: 10.14.24
 
In this episode of Market MakeHer, we're trying something different. We've taken our weekly SMU email and given it to AI to create a separate podcast series. That's right, the email newsletter is also a podcast read by Artificial Intelligence. 
 
The hosts delve into the current state of the stock market, focusing on earnings season and the importance of economic indicators. They discuss the concept of market broadening, highlighting the need for growth across various sectors rather than relying solely on major tech companies. The conversation also covers key economic indicators such as PCE, inflation, jobless claims, and retail sales, explaining their significance in understanding market dynamics. Finally, they address the Federal Reserve's efforts to achieve a soft landing for the economy and emphasize the importance of staying informed as market conditions evolve.

*This episode is produced by artificial intelligence sourced from our weekly stock market newsletter*

     
Key takeaways:

• Market broadening is essential for a balanced economy.
• Earnings season shows a positive trend with 79% of companies exceeding expectations. (6% of 500 have reported, though)
• The financial sector is performing well, while the energy sector is struggling.
• PCE inflation is a key indicator monitored by the Federal Reserve.
• Jobless claims provide insight into the health of the job market.
• Retail sales reflect consumer confidence and spending habits.
• Housing starts indicate builder confidence in the market.
• The Fed aims for a soft landing to control inflation without triggering a recession.
• The stock market anticipates future growth, not just current conditions.
• Staying informed about economic indicators is crucial for investors.

💜 We're loving it: Spotlight on Econ with Sarah 🌟

Want to get smarter about healthcare and how it affects the economy? Check out Econ with Sarah! Sarah has a PhD in health economics and runs a TikTok acc

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✨ Jessie DeNuit: ⁠TikTok⁠ ⁠Instagram⁠
Funny Finance Shirts and Merch

About Us 🌚🌞
Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend, a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We teach complex investing topics in a different way - from "Her" perspective.

Important Disclosures:
Investing involves risk. There is always potential to lose money when investing in securities. Market MakeHer LLC provides educational content and resources for informational purposes only. We are not registered financial advisors & do not provide personalized investment advice. Consult with a l...

What Is Portfolio Management and Asset Allocation? Put On Your Construction Hats. 

So you started investing in the stock market, now what? Want to learn how to construct an investment portfolio or manage your retirement portfolio? In this episode of Market MakeHer, hosts Jess Inskip and Jessie DeNuit delve into the intricacies of portfolio management and investment strategies. They discuss the importance of constructing a well-diversified portfolio, understanding personal financial goals, and defining risk tolerance. The conversation emphasizes the need for regular rebalancing and adapting to market changes, while also highlighting the role in using analyst recommendations or using a robo-advisor or financial advisors for investing guidance. Remember, you can always call up your brokerage firm and ask questions for free. Or you can submit a question to us. 

Types of portfolio asset allocation: 

Conservative, Balanced, Growth, Aggressive Growth 

Links:

Morning Star X-Ray Tool 

Risk Tolerance Episode

Takeaways

• Identify your investing goals.
• Define your risk tolerance. 
• Construct your asset allocation.
• Make sure you are diversified.
• Rebalance and Adjust your assets.
• Understand when to hold or sell investments.
• Investing is a lifelong journey that requires regular review.

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✨ Jessie DeNuit: ⁠TikTok⁠ ⁠Instagram⁠
Funny Finance Shirts and Merch

About Us 🌚🌞
Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend, a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We teach complex investing topics in a different way - from "Her" perspective.

Important Disclosures:
Investing involves risk. There is always potential to lose money when investing in securities. Market MakeHer LLC provides educational content and resources for informational purposes only. We are not registered financial advisors & do not provide personalized investment advice. Consult with a l...

The stock market has been having quite the week since our last episode on the Fed’s decision to NOT do a rate cut and the resulting effects of the not-so-great unemployment numbers that came out last Friday.

Recipe for disaster?

Is the stock market crashing? Why was there a sell-off and what is a market sell-off? And is this a good time for us self-directed investors to invest more, like, is the stock market on sale?

What were the sell-off ingredients? 

• The Carry Trade (Yen Got Stronger)

• The Sahm Rule (Recession Indicators)

• Recession FEAR (Emotional Investors)

Sell-Off Decline: Pull-Back, Correction, Bear Market?

We all know that the stock market recently tanked and there was a huge sell-off. Was this a pull back or a correction, are we in a bear market. 

The difference is a decline of:

Pull back = 5-9% 

Correction = 10 -19% (Stock Market Is Currently Here)

Bear market = >20%

✨The recent turbulence was the most severe since the 34% decline that occurred in Q1 2020.

✨ Market corrections happen almost every year. Since the early 1980s, there's been a greater than 5% drawdown in the S&P 500 Index in every year but two (1995 and 2017).

✨ The stock market has historically recovered quickly from corrections. The average time to recovery from a 5%-10% downturn is three months. The average time to recovery from a 10%-20% correction is eight months.

✨80% of corrections since 1974 have not led to a bear market.

✨ There's a 73% probability of a double rate cute (.50%)

How do we know we are in a recession? 

Great Analogy: https://www.tiktok.com/t/ZTNgX6jUW/

Related Episodes:

Ep. 46) Fed Update: What is Event Risk? Could it Trigger a Sell-Off?

Ep. 45)

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Funny Finance Shirts and Merch

About Us 🌚🌞
Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend, a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We teach complex investing topics in a different way - from "Her" perspective.

Important Disclosures:
Investing involves risk. There is always potential to lose money when investing in securities. Market MakeHer LLC provides educational content and resources for informational purposes only. We are not registered financial advisors & do not provide personalized investment advice. Consult with a l...

We recorded this on 08/01/2024, knowing that unemployment numbers will not drop until this podcast airs on 08/02/2024, and that might also change so keep that in mind. 

**Employment Report Update from Jess** 

Fed's View on Labor Market:Fed Chair Jerome Powell stated that the changes in the labor market are "broadly consistent with a normalization process." However, policymakers are closely watching for signs of deeper issues.

Unemployment Report Highlights:

• Unemployment Rate: Jumped to 4.3% in July, the highest in nearly three years.
• Hiring Slowdown: Significant reduction in hiring activities.
• Concerns: Increased fears of a weakening labor market and potential recession.
• Trend: This is the fourth consecutive monthly increase in unemployment, rising from a five-decade low of 3.4% in April 2023.
• Cause: The slowdown is driven by weak hiring rather than layoffs. 

Following the release of the employment data: U.S. Treasury yields dropped, meaning bond prices rose and we are in a sell off. 

Fed Meeting Notes aka The Powell-Point

Fed Chairman Jerome Powell announced on the latest FOMC press conference that there will NOT be any rate cuts. We're shocked, really. Let's go through the data! 

It's no secret that most of us Americans are feeling the impact of higher rates to borrow money and inflation. But finally! It's not just us smaller consumers feeling the heat, larger companies are as they reported revenue declines. And if the big companies feel it, they will have to make some changes. 

Price Stability + Max Employment & Event Risk

Something feels broken. The Fed has a toolkit to use when something is broken. Which means: rate cuts!

What does it mean for you?

We might see some sell-off in certain sectors. But that is normal rotation. Remember, this is not financial advice, but we have some episodes on What Is Inflation, CD Laddering, Bond ETFs, Are We In a Recession, etc., for you to understand what happens when the Yield Curve is de-inverted and what happens when rates inevitably get cut. Are you going to move your HYSA money into a Treasury, CD Ladder, or Bond Fund? 

Investing Rollercoaster

DON'T be an emotional investor. Y

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✨ Jessie DeNuit: ⁠TikTok⁠ ⁠Instagram⁠
Funny Finance Shirts and Merch

About Us 🌚🌞
Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend, a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We teach complex investing topics in a different way - from "Her" perspective.

Important Disclosures:
Investing involves risk. There is always potential to lose money when investing in securities. Market MakeHer LLC provides educational content and resources for informational purposes only. We are not registered financial advisors & do not provide personalized investment advice. Consult with a l...

Inflation is at an all-time high and so is the stock market. This is a tale of two markets. How is the S&P 500 making record highs when so many Americans are living paycheck to paycheck?

We're going to break it all down. What's happening in the stock market, what the S&P 500 actually is, what market breadth and concentration risk means and why it all matters to you! We also discuss small-cap, mid-cap, large-cap, and even mega-cap companies in your portfolio, briefly, because the small-cap companies are starting to come up. This one is a little intermediate, but all very valuable info when you are a self-directed investor learning how to manage your portfolios to reach your goals. 💰💰💰

(Go to the 20-minute mark for a great analogy about this stuff if you get lost leading up to that point 😉🔮)

Free eBook: The Stock Market Explained

Today's Hosts

Today's episode was hosted by our resident finance expert with 15 years of experience, Jessica Inskip (TikTok and Instagram) and our newest Market MakeHer finance-sis, Jacey Saige, a Gen Z investor here to learn everything she can about investing so she can spread financial literacy to her audience on TikTok and Instagram!

Still Have More Questions or a Comment? 

🙋🏾‍♀️🙋🏻🙋🏼‍♀️🙋🏽‍♂️🙋Holla @ us on:

⁠Market MakeHer ⁠⁠website⁠⁠⁠

Get Your Free eBook: The Stock Market Explained

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Email jessica@marketmakeherpodcast.com 

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Support the show

Ask Us a Question, Leave a Review, Follow, Subscribe:
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👀 ⁠ ⁠⁠YouTube Channel⁠⁠⁠
✨ Jess Inskip: ⁠TikTok⁠ ⁠Instagram⁠
✨ Jessie DeNuit: ⁠TikTok⁠ ⁠Instagram⁠
Funny Finance Shirts and Merch

About Us 🌚🌞
Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend, a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We teach complex investing topics in a different way - from "Her" perspective.

Important Disclosures:
Investing involves risk. There is always potential to lose money when investing in securities. Market MakeHer LLC provides educational content and resources for informational purposes only. We are not registered financial advisors & do not provide personalized investment advice. Consult with a l...

Let's refresh and re-assess our financial planning goals for our future selves. You've budgeted, you've saved, you've looked at what you've got going on in your spending and bills and what you have left over - what do you do with that extra money? (Invest it, of course 👻)

*this is educational info, not advice - personal finance is personal, duh, and we don't know you're unique situation*

We're replaying our budgeting, savings, and investing episode because it's that time of year to assess your finances again and we're looking at our own finances again, so we thought we'd remind y'all to do the same!

Get Our Free e-Book on The Stock Market Explained!

Still Have More Questions or a Comment? 

🙋🏾‍♀️🙋🏻🙋🏼‍♀️🙋🏽‍♂️🙋Holla @ us on:

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 About Us 🌚🌞

Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend who is a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We believe that investing is for everyone and that's why we break down complex investing topics (from "Her" perspective), show you free tools/resources on our podcast, and offer a ton of free educational content

Support the show

Ask Us a Question, Leave a Review, Follow, Subscribe:
🔗All Market MakeHer Links
👀 ⁠ ⁠⁠YouTube Channel⁠⁠⁠
✨ Jess Inskip: ⁠TikTok⁠ ⁠Instagram⁠
✨ Jessie DeNuit: ⁠TikTok⁠ ⁠Instagram⁠
Funny Finance Shirts and Merch

About Us 🌚🌞
Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend, a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We teach complex investing topics in a different way - from "Her" perspective.

Important Disclosures:
Investing involves risk. There is always potential to lose money when investing in securities. Market MakeHer LLC provides educational content and resources for informational purposes only. We are not registered financial advisors & do not provide personalized investment advice. Consult with a l...

How Does The Stock Market Perform During an Election Year? We are not getting political in this episode -- however, we are on a fact finding mission to understand if the stock market is. Let your fin-mom and fin-auntie break it down for you. 😉🔮

Does the U.S. Presidential election affect the stock market? Does the political party of the elected leader make a difference? Let's discuss, shallllll we? We're going to look at historical data going back to 1900 under each party and even drill down to the sectors.

Seasonality Happens Every Year, But Past Performance Is Not Indicative of Future Results 👻

There are 4 years in a U.S. Presidential cycle, the 4th year is positive for the stock market historically (S&P 500). Since 1928, the 4th year of an election cycle is up 73% of the time with a median return 9.5% - no matter who the political party is. 

Does the political party in charge matter?

Looking at Democrat vs Republican, we go back to the 1900s when the DJIA (Dow Jones Industrial Average) was created and see a very minimal difference whether Dem or Rep is in office. Clearly there’s no dispersion because the stock market relies on growth, but the outlier might be those instances when the political party of the president runs both the house and senate, the data changes a little, but overall, the outcome of the Presidential election does not really affect the stock market. The median annualized return every election year is 7.7% when a Democrat wins and 7.9% when a Republican wins, historically. Such a very small difference - make whatever conclusions from that you'd like. 😘

The Takeaway

Elections don’t really impact the stock market. There’s natural seasonality around the time of year Presidential elections take place, but the election itself and the outcome don’t make much of a difference. Time in the market is still your friend!! Stay consistent with how you invest and don’t be an emotional investor. Look at the overall stock market performance over a large span of time and you’ll see that there are always ups and downs, but when you stay invested for a long time your return inevitably goes up.

Check out this article Jess wrote for UK Money Week:

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Ask Us a Question, Leave a Review, Follow, Subscribe:
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👀 ⁠ ⁠⁠YouTube Channel⁠⁠⁠
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✨ Jessie DeNuit: ⁠TikTok⁠ ⁠Instagram⁠
Funny Finance Shirts and Merch

About Us 🌚🌞
Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend, a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We teach complex investing topics in a different way - from "Her" perspective.

Important Disclosures:
Investing involves risk. There is always potential to lose money when investing in securities. Market MakeHer LLC provides educational content and resources for informational purposes only. We are not registered financial advisors & do not provide personalized investment advice. Consult with a l...

In this episode we re-visit our AI Portfolio and Investment Thesis that we discussed back in Episode 21, but with a new emerging headwind. According to our very own Jess Inskip, "the real ‘P/E Risk’ isn't overhyped price to earnings. The risk is price to energy." (Get it? That's a P/E Ratio joke 👻)

AI Investing

Most of us are invested in AI, whether we know it or not, because the S&P 500 is mainly technology, and according to Yahoo Finance the S&P 500 is 31% technology, with  29.5% of that being only 7 stocks! (The Mag 7 or Magnificent 7)

How Much Electricity Does Generative AI Use?

Nvidia (NVDA) valuations are justified as the hyperscalers are top customers and we are seeing real earnings at incredible profit margins. The earnings potential makes sense. However, the energy consumption and subsequent pressure represents the real risk. Blackwell chips have not even made its way to market yet – each Blackwell AI GPU sold by Nvidia consumes up to 1200 watts of power, so 3.5mn of them would consume 1.8GW of power in the US alone. (Consensus estimates 3.5b in GPU sales by 2027).

Validate Your Investment Thesis (What you eat, eats.)

Look at the root of the problem with all of this AI grid pressure and see where the solutions might be (as in which companies are coming up with solutions for this bigger issue). "Sustainable AI" is still in its infancy, but maybe there are some companies out there that are using AI for good and to help come up with solutions to some of these issues?

AI Opportunities (but do your homework)

The grid pressure is a longer-term risk, it does not mean the AI story has peaked yet. AI build out cycle still in play: Opportunities still exist benefiting NVDA, AVGO, MRVL, AMD, and MU. Q1 earnings told us that capex spending is only increasing. Not adding more here, rather maintaining positioning. You can look into Copper and Uranium ETFs as well, just consider your personal ethics in investing and how that comes into play for you and which companies' success you truly want to be invested in (remember, when you buy a stock you are not giving money to the company directly,

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Ask Us a Question, Leave a Review, Follow, Subscribe:
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👀 ⁠ ⁠⁠YouTube Channel⁠⁠⁠
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✨ Jessie DeNuit: ⁠TikTok⁠ ⁠Instagram⁠
Funny Finance Shirts and Merch

About Us 🌚🌞
Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend, a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We teach complex investing topics in a different way - from "Her" perspective.

Important Disclosures:
Investing involves risk. There is always potential to lose money when investing in securities. Market MakeHer LLC provides educational content and resources for informational purposes only. We are not registered financial advisors & do not provide personalized investment advice. Consult with a l...

There are so many different ways to buy and sell securities in your brokerage account. In this episode, we'll go over many of the different order types you may see in your brokerage account when you go to buy or sell a stock, or any securities.

What does Bid and Ask mean? What is Stop and Limit Order? What are market orders? How many different Order Types are there and what is the difference? This is your ‘set it and forget it” overview of order types for trading securities through your brokerage firm.

Remember These Things:

Take taxable events into account (capital gains, losses, selling before holding for 1 year, etc.)

Don’t try to time the market.

This is education, not advice. 😉

Limit Order vs Market Order:

Limit Order guarantees price not execution

Market Order guarantees execution

Trading Order Types Vocabulary: 

Market Mechanics

Bid & Ask Price

Market Order

Limit Order

Stop Loss Order

Trailing Stop Loss

Stop Price 

Limit Price

Conditional Order Types

FOK = Fill Or Kill

GTC = Good Till Canceled 

OTO = One Triggers Other

OTOCO = One Triggers Other Cancel Other

SPX  = S&P 500 Indice Symbol

FINRA has a good explanation of Order Types

Visuals aka Jess Made a PowerPoint 👀

If you didn't know, Jess loves to make a deck! Check out the PowerPoint she made If you’re listening on Spotify, you can also watch the video podcast and follow along in the PP slides Jess Inskip made for us. We also eventually upload all of our video podcasts to our YouTube channel. Jess used stockcharts.com to make some of the visuals in our PowerPoint. We’ll post it on our website and slides on social media.

Episodes You May Also Like:

We’ve already gone over Bid and Ask prices and how those market mechanics work in previous episodes as well. Check out

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👀 ⁠ ⁠⁠YouTube Channel⁠⁠⁠
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✨ Jessie DeNuit: ⁠TikTok⁠ ⁠Instagram⁠
Funny Finance Shirts and Merch

About Us 🌚🌞
Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend, a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We teach complex investing topics in a different way - from "Her" perspective.

Important Disclosures:
Investing involves risk. There is always potential to lose money when investing in securities. Market MakeHer LLC provides educational content and resources for informational purposes only. We are not registered financial advisors & do not provide personalized investment advice. Consult with a l...

What Is The Bond Market and What Are Bond ETFs?

CPI is “cooling off” which means inflation is trending closer to the Fed’s target, which means a rate cut MAY be in our future! What does that mean? Well if the Fed, you know, good ol "Papa Powell" who we keep talking about, well if they actually go through with cutting rates this is what happens. Interest rates for things like home loans get lower, but that means those high yield savings account rates also get lower. So where do you stash your cash and still get those great returns? Bonds. More specifically, we're looking at Bond ETFs.

We've talked about different types of low risk investing on Ep. 31 about Brokerage CDs but we want y'all to know about all the ways you can make your money make money!

Side Note

Check out Jessica Inskip's most recent appearance on the ⁠Schwab Network Episode⁠ where her worlds collide.

The Bond Market

Ok, so apparently there is not only a stock market, but also a Bond market. Where do we begin?

Need our listeners to know a few things: 

1. You cannot time market, but you can prepare 

2. We are not financial advisors, investing is personal. This is not that.

3. We are here for educational and information purposes only. 

OK, let’s talk about what happened, and define the SEP - series of economic projections. 

Most recent: https://www.federalreserve.gov/monetarypolicy/files/fomcprojtabl20240612.pdf

Different ways to lock in rates: 

1. CDs

2. Treasurys 

3. Municipal Bonds 

4. Corporate Bonds 

5. Bond Funds 

   https://www.ishares.com/us/strategies/bond-etfs/build-bet

Support the show

Ask Us a Question, Leave a Review, Follow, Subscribe:
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👀 ⁠ ⁠⁠YouTube Channel⁠⁠⁠
✨ Jess Inskip: ⁠TikTok⁠ ⁠Instagram⁠
✨ Jessie DeNuit: ⁠TikTok⁠ ⁠Instagram⁠
Funny Finance Shirts and Merch

About Us 🌚🌞
Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend, a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We teach complex investing topics in a different way - from "Her" perspective.

Important Disclosures:
Investing involves risk. There is always potential to lose money when investing in securities. Market MakeHer LLC provides educational content and resources for informational purposes only. We are not registered financial advisors & do not provide personalized investment advice. Consult with a l...