Join us as we unpack the market’s movement in 2019, learn about the Russell 2000 Index, and take a question from Roger on dividend-paying stocks.
In The News:
1:45 – Goldman Sachs Economists Predict Slim Chance Of Market Correction
- Nathan teases and points out that Goldman Sachs economists are incentivized to get people to invest in Goldman Sachs products.
- Goldman Sachs economists aren’t necessarily wrong, but they’re biased, and it’s truly impossible to predict the market.
- Invest for the long-term. The market can still perform well in a recession.
The Financial Dictionary:
6:06 – The Word Of The Day Is “Russell 2000”
- The Russell 2000 Index tells us how the 2000 smallest companies in the United States are performing. These are called “small cap companies.”
- We focus on the S&P 500 and the Dow Jones Industrial Average, and we forget about the smaller players.
- Diversify. Own large cap, mid-cap, and small cap companies.
9:07 – Roger Asks About Dividend-Paying Stocks
- Roger owns an after-tax account with investments that pay dividends each year. However, those dividends are taxed, and he’s concerned about that.
- Nathan explains how it doesn’t matter where your investment returns originate.
- Nathan suggests Roger not focus on high-dividend paying stocks.
- Retirees need to generate income, and sometimes, they focus so much on doing so that they lose diversification.
A Point Of Wisdom:
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