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A bite sized discussion on timely financial news and investment topics, to help you maximize your net worth and wealth for the next generation with Justin Dyer and Mena Hanna of AWM Capital.
Justin Dyer: Hey everyone.
Welcome back to another
episode of a WM Insights.
Thanks for tuning in.
Uh, it's Justin Dyer.
Holding things down as the, uh,
as the host chief Investment
officer here for a WM.
Joined on my right hand side
here with, uh, by Mina Hana,
portfolio manager at a WM.
We're gonna cover a, a, a couple, uh.
Couple topics today.
Um, one is focused just on quarter end, so
we wrapped another quarter, third quarter
of the year, uh, 75% of the way home.
And, um, so far it's definitely
been a strong year, but it's
certainly been interesting and,
and the present moment is, is, uh.
It's, it's definitely very,
very indicative of that.
We, uh, unfortunately just, uh,
saw that the government shut down.
Hopefully by the time this
goes to air, it is resolved.
I don't think too many people are,
are holding their breath, breath.
Uh, and we've seen, you know, all sorts
of, of headlines around the economy.
Uh, and the markets just plowed
right through them for the most part.
It's been a very, very strong gear
across the board, uh, emerging markets.
International developed markets
and US markets all putting
in very, very solid numbers.
If we're looking at ETFs that represent
those certain asset classes, we're looking
at very, very strong double digit returns.
Emerging markets at the top
there, uh, north of 30%.
Developed international
at 26%, just north of 26%.
And then, uh, US markets looking
at the s and p 500, around 14%.
So a super strong year.
And we hope that obviously continues as
we, um, as we wrap things up for 2025.
But one of, one of the things
given, uh, given the timely topic
of government shutdown, wanted
to just address that head on.
So Mina, take it away.
Mena Hanna: Yeah, and I just
wanna say it's been a long year.
It's been a great year.
We've been through a lot.
There was the tariff tantrum,
um, a lot of geopolitical events.
This whole government shutdown, I
think is, is just gonna be a walk
in the park relative to what the
markets have overcome recently.
But looking at the data, the market
has shut down 11 times since 1981.
And.
The longest shutdown actually was in
2018, under the same administration.
Um, and it really wasn't
that big of a deal.
Uh, it shut down for 34 days.
Markets actually did fall around 4%,
but it had nothing to do with the
government actually shutting down.
It had to do with interest rate policies.
There was, um, a little bit of
talk of rising interest rates.
Markets really didn't like that.
They fell 4% roughly around the
same time that the government
actually did shut down.
And then over the next 30 ish
days, markets actually rose 12%.
So in this period of uncertainty
where the government was shut down,
there's a lot of arguing around
what's actually going to get past,
what's the budget gonna look like?
Ton of uncertainty, which markets
don't like, even in the face of all of
that, over a 34 day stretch of time.
Markets ended up 8.5%
up, um, to the good.
So I, I think it's, it's a good
takeaway to understand that a government
shutting down is a very, very small.
Impact, uh, does it impact
us economically, of course.
But the economy is not the market and
ultimately there is so much more out
there than just the government and a
lot more relevant factors, whether it's
interest rates, tariffs, inflation,
corporate earnings, those are all
more significantly more important.
And actually, these are
factors that move markets.
So a government shutdown is.
You know, not the best thing to
to see, but it's not something
that is going to significantly
change our short or long-term
outlooks on any asset class really.
Justin Dyer: That's super helpful
and, and like I said, hopefully this
one is, is not long lasting and,
and, you know, in, in no time it,
it's resolved, but we'll, we'll see.
It shouldn't have material
impacts on the market.
Like you said, the broader, uh,
underlying fundamentals of company
earnings, corporate earnings, et
cetera, are really what truly matter.
We're gonna shift gears a little bit,
a little bit of a left turn, but we did
get an inbound question and we wanted
to address it around how different
generations think about investing.
One.
One way I wanna, uh, kind of
reframe that question, like kind
of what's the question underneath?
The question is, uh, and we'll
get to this at the end, is, um.
How should each generation
think about investing?
Right?
There's both, how, how different
groups of, uh, individuals
in different ages, right?
We kind of talked about that in the
last podcast around if you're in the
accumulation phase of, of your life
versus the distribution or spending
phase of your life, how should you
think about building a portfolio?
Um, and this is kind of a, a similar
version of, uh, of the same question.
Let's get into at least how we're
observing the differences, Mina, and
then we'll, we'll conclude with our take
on actually what we think on, on how
each generation should actually invest.
Mena Hanna: Yeah.
Um, and, and it's really.
I'd say it's very different.
I wasn't expecting the results to be
as different as they are or findings to
be as different, they're as they are.
But I guess looking back at it,
it kind of makes sense if you're,
if you're a boomer, if you had an
easier life, um, for the most part,
Justin Dyer: That's a load.
That's a loaded term there.
Watch out.
Mena Hanna: Buying a house was easier.
You made more money on,
on a relative basis.
You know, you could buy something like
a Corvette for $4,000 back in the day.
Um, you, you have just more
of an opportunity to succeed
and, and also just being older.
You have more time if you are saving
money to compound that money to actually.
Build value in an investment
account via your retirement savings.
All of those general areas, um,
versus some of the newer generations
and, and their learned experiences.
I would say witnessing potentially the
runup in tech stocks, the runup in large
caps, witnessing crypto kind of explode.
Also being on social media and seeing.
Influencers, crypto traders
make an absolute killing.
Like all of these little micro
experiences, I would say impact
how everyone observes and views
wealth accumulation views.
The concept of investing, of saving of,
what am I actually trying to do with any.
Disposable income that I do have.
Um, so yeah, all, all interesting points.
But I guess, uh, I, I was
very critical of boomers.
Um, what's your take on on
Boomers investing sentiment?
Justin Dyer: Yeah, I mean, I, I think
there, there's, um, I would just
agree with what you're saying, right?
Each and every generation is
a product of the reality or
their, their lived experiences.
So I think.
You can argue that boomers
were able to start earlier.
Let's not say, let's not use the
term they, they had it easier, but
they were able to start earlier.
Then we move on to Gen Xers.
Not all that dissimilar, but I
think to your point, they had a
little bit more of a, a rocky, uh,
formative period of, of their life.
And so they're a little bit more
conservative and, and focus on saving for
retirement as opposed to growing wealth.
And then you transition into
millennials and they're kind of.
The split generation, if you look
at, uh, surveys, et cetera, and in,
uh, investing in savings type surveys
where they're like a hybrid between
boomers and Xers and then, and Gen
Zs as well, there's a kind of a blend
of traditional investing beliefs and.
More risk taking into, um,
uh, you could call it frontier
assets or um, crypto et cetera.
That's a, that's a loaded term.
And there, there's a lot behind
crypto and blockchain, et cetera.
We've talked about that and maybe
we'll talk about that in greater
detail in, in a future pod, but.
Just in general, I think there's more,
uh, willingness and part of that is
because it's hard to get ahead and
they think, at least again, looking
at survey data, they think they need
to take more risk to get ahead, or
they, they can't afford to buy a house.
If you look at Genzer, so, you
know, I've read some articles that
the belief is that they, they will
take, take risk both to get ahead or
because there's, you know, there is no
alternative kind of, uh, kind of mindset.
Um, so there is, there
are these differences.
But what, what we wanna do is reframe
that, the question, which is good.
I think it's very interesting, you
know, kind of from a sociological
standpoint to see how people are
formed and shaped, et cetera.
And it, and it does have some
implications for investing.
But if we go back to
how we view investing.
Ask the question, how should
every generation invest?
It does go back to a lot of what
we talked about in that last,
last podcast and the through line
here is, is discipline, right?
Whether you're talking about a gen
Zer who maybe doesn't have as much
additional income to save, you still
need that discipline to save, right?
Whether you're investing in, in
crypto or saving to buy a house.
Boomers, same idea.
They needed discipline.
Maybe it took 'em.
You know, 50% less time to get
there, but that discipline is.
Critical.
Uh, and then we would advocate
very, very heavily for very much a
data-driven, long-term oriented approach.
You know, if you're, you are younger
and you kind of have a, a greater
familiarity or, or exposure, um, to the
world of, uh, these newer assets and
you're comfortable with that, great.
But understand the risky, inherent,
unproven nature of them and,
and right size exposure to that.
You want to be the
casino, not the gambler.
You want to build a portfolio
in a methodical way.
Go back to that podcast again that
we talked about in, in prioritizing,
building that foundational
part of your portfolio, right?
The, A architecture is gonna think,
or the, the architect is gonna think
about the frame and making sure
the foundation and framing of your
house is, is as strong as possible.
So that thing stands.
The test of time and building
a portfolio is no different.
So regardless of what generation
you're a part of, you do need to kind
of take a step back and, and try to,
you know, depending on where your
mindset, your starting mindset is, ask
yourself, what does the data tell us?
How can I stack the odds in my favor?
How can I better improve my
discipline, whether it's on the
saving or spending side, so I can
have this lasting incredibly strong.
Foundation and, and house right, or, or
portfolio to, to meet my needs at the
end of the day, that's what we always
like to reframe this conversation around.
Well, money is a tool that should,
that is there to accomplish
what's important to you.
We wanna build the, the foundation and
the overall structure to accomplish that.
So, uh, hopefully that's helpful.
Uh, great question.
We love them.
Keep them coming.
It helps us orient, uh, these
conversations in a way that's way more
interesting and meaningful to you.
All the listeners.
Uh, so please, please, please, Mina
give them your, give them your number.
Again, you can always text Mina a
question or a topic you want us to cover.
Mena Hanna: Yeah.
6 2 6 8 6 2 0 3 5 5.
Justin Dyer: Cool.
Until next time, own your wealth,
make an impact, and always be a pro.
Thanks for listening.