The Market Is Changing and Investors Need to Pay Attention

SPEAKER_1 (0:01)

Welcome to the Money Tree Investing Podcast. Stock market, wealth, personal finance, value stocks. Invest in your life.

Kirk Chisholm (0:11)

Hello, smart Money Tree Podcast listeners. Welcome to this week's show. My name is Kirk Chisholm. I'll be your host, and today I'm joining with Doug Heagren. Hey, Doug.

Douglas Heagren (0:17)

Guten, I don't know. If I was going to butcher German, whatever, happy Friday, happy Labor Day, everyone. Happy Labor Day, Kirk.

Kirk Chisholm (0:24)

Yeah, I forget what a Guten gotten.

Douglas Heagren (0:26)

I was going to say Guten tag, like Guten, whatever, Guten Morgen, whatever the haste, Danke, Prost, Prost, the most important word in German. That in Birra, right?

Kirk Chisholm (0:39)

Linguists are not our strengths.

Douglas Heagren (0:40)

No, not anybody who's probably listened to us in the last couple of years on this podcast would agree to that.

Kirk Chisholm (0:46)

Oh, boy. All right. Well, it is Friday before the long weekend and it is Labor Day on Monday. I'm excited to get some sleep.

This summer, we usually go fishing with a friend's boat and they got a new boat and they couldn't do it this summer. We were going to go on a fishing trip. Apparently, that was going to be tomorrow. And I didn't realize the last minute, like son of a, my oldest son couldn't make it because he had work. They barely have enough people to even host the fact that he's lifeguarding. So they're like, nope, there's no way to substitute. So it would have been like basically one of us and one of our sons, and we're just like, you know what, let's just cancel it. And the guy's like, no, we can't cancel. We just told us we can because weather is going to be awful. So I'm very thankful that we're canceling. I love fishing. If you go in a big group, it can be fun in small doses. But if you're out there for four hours, it's fine. But at some point, it kind of loses its luster.

I could tell you that sailing or being in a boat in September is not ideal.

Douglas Heagren (1:47)

Depends on your weather, but I can agree with that. And I like what you said about fishing in a bigger group. Like one of the best times I ever had was going up to Canada, about probably 15 of us, and we had the different boats, we had guides of the slate. I've gone plenty of times by myself, and I know there are people that would just like mostly introverts.

I would like to just sit on a boat all day, just waiting, and my kids aren't that way, I struggle with it too.

Kirk Chisholm (2:14)

I'm an introvert, I definitely don't want to do that. That's all I'm going to say.

But either way, we'll see if it'll be a good weekend. I've gotten intermittent reports, today was supposed to rain, today's actually looks beautiful. So tomorrow is supposed to rain, or 50 percent coverage, which once again, I have to say, learning about my weather app, and it just says 50 percent, most people think it's 50 percent chance of rain, it's actually 50 percent coverage of your area, which I found to be fascinating still to this day. It's weird because I don't think too many people know that. But the rest of the weekend looks good. So we'll see. Hopefully, we get a good weather, and hopefully, you all take some time off and enjoy the weekend and relax. I feel like I need to recover from like a week of sleep, so I'll probably try to sleep as much as possible and maybe do some hobbyist things. As we wrap up the summer, this is the last day for unofficially of the summer. We saw this week. This week was the first week of September, and we definitely saw the markets do a little double-take, freak some people out a little bit. August seemed to be perfect, nothing wrong, and then the adults came back into the room in September, where all the professionals come back into their desks and start trading again. This week, we saw some resets.

I didn't follow all the companies, but apparently one big company, I think it was Lululemon, that came out and dropped from basically 121 down to below 100, so it dropped like 20-some-odd percent. I think it was on earnings. I don't follow them, but I just heard the news this morning. So there's actually a bunch of stocks, I'll pull them up when Doug talks, but there's actually a bunch of stocks have been repriced lower in the last week. And one of the things to keep in mind is, this market is and has been extremely expensive for a long time. Now, I know a lot of you listening are like, oh my God, the market is expensive, what should I do? You know what? If you were basing your investment decisions based on how expensive the market is, you would not have invested for the last 20 years, maybe longer. The market has been overpriced for maybe 30 years, withstanding maybe some years here and there. But generally speaking, the market's been overvalued for a long time.