CNBC “Your Money” Is All about Personal Finance Basics
~ Friday, November 10, 2023 Blog Post ~
I watched CNBC “Your Money” yesterday, Thursday, November 9, 2023. For two hours, I learned some insights from financial experts like CNBC regulars Jim Cramer, Winnie Sun, specialists from the program’s sponsors, and many others.
Well, they provided some advice and guidance on how consumers should navigate the uncertain economy caused by factors like the geopolitical risks (Russia-Ukraine and Hamas-Israel conflicts) and the US election next year.
I find most of the tips basic. But anyhow, I’m glad to be reminded. Here are some of CNBC “Your Money” insights:
1. Stay invested.
Keep that buy-and-hold strategy. Invest through that uncertain period by picking really good companies like Novo Nordisk, and buying more. Try to find and own great stocks such as Novo Nordisk drug stocks. The wrong candidate for the stock market may win, yet investors will be ready for being invested for the long-term. Don’t listen to the worry words.
2. Economize.
The stockpile of cash Americans saved during the pandemic is largely gone. People’s feelings on the economy are getting worse and they wonder if a recession is imminent.
With these negative consumer sentiments, it pays to find ways to downsize when shopping. For instance, cut the cord. Choose store brands over name or luxury brands. Make sure to meet those basic needs and not so much the wants.
3. Continue to save money.
With the persistent inflation, everything is just about very expensive. Consumers are still concerned about the higher prices of everything, particularly energy and food.
Replacing a car is much more expensive. Additionally, the housing market is frozen right now with such high mortgage rates. Raised interest rates make it expensive to buy a house.
Nevertheless, consumers should save some money on the side for the car. They should also still save up for that home downpayment. By looking at their budget, consumers should think about ways where they can economize. Saving every dollar counts. A little bit can add up.
4. Think about retirement.
Generation X, Y, and Z should think about retirement. Educate oneself about how to save for the future as this measure is going to be important later. It’s never too late to start planning one’s retirement.
One should ask oneself how he wants his retirement to look like. What dreams and hobbies would one like to do to spend time on retirement? Plus, start living as if one is already living off one’s retirement money. These factors determine how much money one needs for retirement.
5. Diversify one’s investment portfolio and stay informed.
Investors should understand that their time horizon and comfort with risk are critical. They should ask themselves what their cash is earning them today and if there is a better way. Buying a certificate of deposit or CD and investing in a high-yield market fund is a way to diversify one’s investment portfolio.
Gold is negatively correlated with stocks and bonds. Owning gold or having 5 to 10 percent of one’s investment portfolio in the precious metals may be feasible. But remember that multiple asset classes perform differently in different market environments. The performance of gold is not the same as the stock market.
Furthermore, remember that the Federal Deposit Insurance Corporation (FDIC) gives depositors confidence in the banking system. Consumers should ask themselves whether they are above or below the guaranteed FDIC coverage amount.
6. Beware of cryptocurrency investing.
Convicted cryptocurrency fraudster Sam Bankman-Fried is facing the possibility of spending more than a century behind bars. To avoid suffering the fate of his victims, avoid unregulated, unlicensed cryptocurrency investments that are more into misinformation, hype, and fraud. It is commonsensical: If something is too good to be true, it probably is.
7. Be in control of one’s finances.
Control what can be controlled. What can be done today? Get debts paid. Have that emergency fund. Do not get oneself overextended. Identify one’s goal for the next two months.
8. Consider economic uncertainty as an opportunity to prepare.
No one knows what lies in 2024, which is filled with the abstracts and nebulous what-ifs. But economic uncertainty that scares people is an opportunity. Just start. Map out a roadmap. This step helps in case one loses his or his partner’s job tomorrow.
2024 has many investment opportunities. We all want to make money and preserve it, regardless of economic setbacks like those caused by geopolitical concerns, inflation, and so forth. Watching CNBC “Your Money” offered me some reminders on how I can continue to take control of my financial future, build wealth, and set myself for a brighter financial future.
Here are eight Twitter links to CNBC “Your Money” clips and information:
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7.
8.
NOTES:
1. CDValet.com, Edward Jones (Lena Haas), Empower (Take control of your financial future)
2. financially curious, build wealth
3. Financial Freedom, Grant Sabatier
4. Set yourself for a bright financial future.
5. Year by year
6. stockpile of cash Americans saved during the pandemic is largely gone
7. S&P led by magnificent 7
8. sub rosa
9. Investment opportunities for 2024
10. I mentioned that because that is what I was worried about.
11. A lot of billionaires already have the money.
12. We want to make money and preserve it.
13. I love your guidance and advice here.
14. US Election next year and geopolitical risk
15. Investing tactics and outlook
16. No matter what occurs
17. Invest through that period, pick really good companies, buy some and more; a wrong candidate for the stock market but we’ll be ready; because we’re in it for the long term
> Own and try to find great stocks
> Too short-term in nature; I’m not worried about those events; Amen
> Buy and hold strategy
> That was precisely the greatest rally
> If you listen to the worry words, don’t.
18. Drug stocks — Novo Nordisk; one-two punch
19. It sells at a high PE
20. NVIDIA will have the biggest chunk of money.
> That’s how big they are in this.
> ServiceNow, Adobe, Advance Micro, Barm, Broadcomm, Microsoft
21. US Bancorp, First Horizon, JP Morgan, Wells Fargo
> The regionals to me are always risky.
22. Economic outlook: Will 2024 be better?
> Their feelings on the economy are getting worse.
> Are we headed for a recession and if so, when?
> Businesses will not be investing.
> Is that helpful?
> Jobs with bigger wage gains.
> Retail and transportation
> Still looking to hold on to their best workers.
23. Inflation — higher prices to everything
> Everything is just about very expensive.
> Geopolitical concerns
> Consumers are still concerned about inflation, particularly food and energy.
> It’s much more expensive to replace a car.
> Housing market is frozen right now with such high mortgage rates. Raised interest rates makes it expensive to buy a house.
> More people will re-enter the market.
> Still save up for that downpayment.
> Save some money on the side for the home, car, etc.
> It’s probably best to wait.
24. Recent spikes from delinquencies on credit cards, homes and auto loans, etc.
> Credit cards are more than a trillion dollars in aggregate.
> Consumer debt in 2024
> Pare down some of that debt.
> How to manage that debt that seems to grow?
> Economize, find ways to downsize what you’re buying;
cut the cord; luxury vs. store brands; Make sure that you meet those basic needs and not so much the wants
25. Overall debt levels and delinquencies
26. Excess income towards student loans
27. 35 to 50 years old — peak spending years
28. Figure out how creditworthy you are; creditworthiness
29. Medical debt
30. Older Americans are looking at their savings; Make sure they have enough to last their lifetime.
31. Anything that they can do now to help them save is going to be important for later. — Gen X, Y, and Z should think about retirement.
32. Look at your budget: Name brand vs. store brand; Think about ways where you can economize; Work on your debt; Save every dollar counts; A little bit can add up; 25%; Budgeting
33. Harnessing the power of fear to build wealth
34. FIRE at the age of 49
35. We barely scraped by.
36. I had my own money. I really felt rich at that point.
37. Frugalist, minimalist
38. Good soleil; I don’t have the stress of work. Hitting the 1-million-dollar net worth
39. Fear can hold real value in building wealth.
40. What do you want me to protect?
41. Where do I start? Well, you just have to start. — Jane Wells
42. Personify some things to get a handle on my emotions.
43. It’s important to be in touch with all your emotions — emotional intelligence
44. Fear was guiding me towards being more in control. Try to find what is certain in your life and what you can control. Your own talents and how you apply them.
45. High interest rates makes it very hard to afford a home right now; two world wards wreaking havoc
46. I don’t know what to do and then breaking it down.
47. The economy is uncertain and that scares us.
48. nebulous what-ifs; the abstracts
49. lost your or your partner’s job tomorrow; map out a roadmap; an opportunity
50. financial fear — the brain is prompted to find a lasting cure: make a plan and get educated
51. Worse case scenario: Making money and not spending it wisely
52. Financially ambitious woman; striking out on the dating field; wasn’t their cup of tea; tone it down, you’re too much; first dates never got into second dates; I got tired. I was afraid of rejection and loneliness. I was missing out on my full potential. Being financially ambitious and nothing to be ashamed of. Things will work out. I wasn’t planning on telling this story on CNBC but here we are.
53. Facing your fears to be financially responsible and face the unexpected.
1. Fairly negative sentiment from investors
2. As to why
3. pretty favorable rate
4. Geopolitical crisis going on around the world
5. investment focus; human tragedy/crisis; navigate this volatility
6. flight to safety response — a temporary phenomena
7. what happens in oil and energy prices
8. Start living as if you’re already living off your retirement money.
9. It’s not too late to start planning. What do I want my retirement to look like? Dreams? Hobbies? How would you like to spend your time on retirement? Determines how much money you need.
10. Which is more a question of timing
11. How an investor might structure their portfolio? How much cash?
12. Sticking to a specific plan is key. Avoid emotionally based decisions. Your style of investing may inform this.
13. Having your cash at the right amount.
14. What are elements of that process? Your time horizon is critical and your comfort with risk.
15. Having a higher cash balance
16. Risk is a part of a diversified portfolio
17. Benefit in a rocky environment
18. I would say.
19. Should we also own gold? 5 to 10 percent in your portfolio in the precious metals; negatively correlated with stocks and bonds (decline in value)
20. Multiple asset classes perform differently in different market environments.
21. Performance of gold is not the same as stock market.
22. What is your cash earning you today? Is there a better way?
23. buying a CD; invest in a high-yield market fund
24. FDIC gives depositors confidence in the banking system.
> Are you above or below the guaranteed FDIC coverage amount?
> regional banks; Understanding how much money you have with one bank is key.
> Power personal cash product — EMPOWER
25. Get your reaction
Liquidity for future expenses
16. I’m waiting for the right moment to deploy my cash.
> That’s what I do everyday.
17. to have agency and control
18. social, emotional, financial barriers to entry to the financial markets
19. Robo trading platform — Stackwell
20. Low-yielding bank accounts
21. Help people achieve long-term investment in the markets
22. Achieve the outcomes that they’re looking to achieve over time.
23. Giving them access to capital
24. Where frankly most financial services do not show up.
25. Black consumer markets in the country.
26. most financial institutions are not willing to do
27. an end-to-end financial services platform
28. build trust and authentic connections with people in the community; and then we can grow with them from there
29. I think it’s on the table for us.
30. Older white males
31. misinformation, hype, and fraud
32. more than a century behind bars — Sam Bankman Fried
33. Actor to activist; I haven’t used my degree in economics; I dusted my degree off
34. cryptocurrencies; currencies you can use it buy stuff.
35. unregulated, unlicensed investments, more or less
36. Wild, two-year journey that culminated in the book
37. No, I never bought crypto. I actually bet against it.
38. I’m currently working on a documentary.
39. Sure.
40. most likely where his fate was sealed
41. fueled by expensive celebrity campaigns, a lot of hype, lying
42. running a massive fraudulent scheme; was aware of what he was doing
43. the key players have seriously murkly histories
44. Jimmy Zhang
45. Eccentric genius, quantitative wunderkind California
46. Wild hair, t-shirt, cargo shorts
47. 7 red flags for ponzi schemes — SEC
48. Use common sense.
49. Control what you can control. What can we do today?
The importance of having that emergency fund, getting debts paid. not getting yourself overextended. What’s my goal for the next two months?
50. techopedia: Traditional finance, or TradFi, is defined as the mainstream financial system and the conventional institutions such as retail, investment, and commercial banks, insurance companies, brokerages, and other regulated entities that operate within it.
51. I love this question. I think it’s gonna help a lot of people.
52. Roth IRA — Gold egg account
> Withdraw contribution without taxes and penalties
53. Mutual or exchange traded fund — helps diversify a little bit
54. Make sure you have money going in automatically.
55. There’s a lot of things you want to do.
56. I hope that is helpful.
57. Does this make sense? Do you still wanna do this?
Do a deep dive
28. REITs; Diversification is key
29. Rates are unnaturally high. We are in a very unique situation right now.
30. How many years before your kids go to college? Pay off some debt?
31. Congratulations. It’s a great one.
32. When you’re about to leave work in a month….
33. You’re investment time horizon is one month.
34. When I have not income, I cannot contribute (Roth IRA).
35. I really have bills stacking up; Retirement age of 59 1/2.
36. Financial advisors council
37. I love Sharon because she’s so generous with time.
