Chris Payne, BOB, Federal Reserve discussed on No Payne, No Gain

Automatic TRANSCRIPT

We have my brother Chris Payne and Bob three pains in a pod at pain points of well, so check it out. But the one thing we've talked about over and over is the government's printing so much money and what that means for you as an investor and trying to build a retirement plan. All right. One of my favorite shows when you were growing up with Wall Street week, and there was an analyst that came out with a great expression. I've lived by it ever since it's called. Don't fight the Fed. That means you know when the Federal Reserve is increasing rates or decreasing rates, you know you want to invest accordingly. I got a new term for you Don't fight Congress, huh? Yeah. I mean, literally. They're looking to print another $1.9 Trillion Bob Trillion with a T on top of a $2 trillion we had last year and then another 900 billion last year, and the list goes on. I mean, what's gonna happen? With imprinting so much money. And what does that mean? I'll tell you what you're gonna have inflation and inflation pushes asset classes. Certain asset classes hire one of which is interest rates. Interest rates go up. It's like that tea toddler in and the playground that seesaw right If it goes on and goes up, the other end goes down. So if interest rates go up, your bond prices go down. And I'll tell you who's going to suffer the most anyone. I mean anyone right now that owns a horrible bond fund and we think of bonds is something safe in our portfolio is a balanced right against. If the market goes down, you have a safe haven your portfolio, But the problem is Bob in this part of goes back to when you were managing money back in the 19 eighties. Is when inflation goes up, and we haven't seen a lot of inflation last decade, interest rates go up, and conversely, your bond prices go down, and that's why it's more critical than ever it understand what kind of bonds you own in your portfolio, and you probably don't That's so critical, right? We're not talking about Don't own bond. You're talking about own the individual bond. Make sure you understand who the issue is. You know, when you were a kid, I said, right? Whatever you do, don't let me be your buddies. Because if you do, you're not going to get any interest and you're not going to get paid back in the two reasons you make alone you invested a bond which are loans is you wanna make interest on your money? And.

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