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Money Guy Show

What You Don’t Know About The Stock Market (But Should)

Money Guy Show

Brian Preston, CPA, CFP®, PFS and Bo Hanson, CFA, CFP® | Fee-Only Fiduciary Advisors

Education, Retirement, Moneyadvice, Investing, Savingmoney, Personalfinance, Business

4.62.8K Ratings

🗓️ 18 September 2024

⏱️ 30 minutes

🧾️ Download transcript

Summary

"With the S&P 500 being heavily leaning on the magnificent 7 tech stocks, would you still consider it well diversified?"

We'll walk you through that question and more in today's Q&A episode!

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Transcript

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0:00.0

What you don't know about the stock market, but maybe you should.

0:07.0

Brent, I am so excited about this because I love when we can teach people things they might not know had they not

0:17.5

gone to a university and learned about investing and took the finance classes and and have the designations, we get to share that kind of information with our folks.

0:27.0

And not only that, we get to answer the questions that you care about.

0:31.0

We get to speak to the things in your life that you are curious about and we love that we can do that every Tuesday morning at 10 a.m.

0:38.4

And so right now we have the team out in the wings collecting your questions and we want to load you up because we

0:44.0

believe that there's a better way to do money and we also believe that you should

0:48.7

subscribe right now to the channel. With that I'm going to throw it over to you, Creative Director Rebe.

0:55.0

Agreed, don't forget to hit subscribe while we ask Dario's question.

0:59.4

He says, with the S&P 500 being heavily leaning on the Magnificent 7 tech stocks, would you consider

1:06.8

it well diversified?

1:10.4

I like this question, because it seems like headlines always are telling you, hey, okay, you hear some people all the time, hey, just buy the S&P 500, just buy the S&P 500, just buy the index.

1:20.7

It's the lowest cost index out there, just do this, just just and then they're the naysayers who

1:24.6

come in and like but wait but wait if you buy the S&P 500 well what are you

1:29.7

really buying you're buying these seven companies that happen to be the largest

1:35.3

concentrations and the movement of the market is dictated by those seven

1:38.8

companies. I just think it's very interesting, Brian, how short our memories are and also in my

1:45.8

opinion how illogical we can be when we think about the way we invest why we

1:50.4

invest and how we invest. I love this because this lets us get dive into the details of when somebody says

1:57.2

invest in the S&P 500. Yes, it's the 500 biggest companies in the United States, but if you actually put some some

2:03.8

mental horsepower to know what this means, does I mean that every stock of the 500 is

2:09.2

one 500th or is there something more going on and that's why guys when I talk to you

...

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