Don't Let Money Be Your Master

Episode #337 | November 27, 2023

Episode #337 | November 27, 2023

Don't Let Money Be Your Master

In This Episode

On this week's Stansberry Investor Hour, Dan and Corey are joined by Jared Dillian. He's the author and editor of The Daily Dirtnap, a financial newsletter for professional investors. Plus, his newest book, No Worries: How to Live a Stress-Free Financial Life, is coming out in January. Jared gives listeners a few tips from his book and also explains why he isn't investing in U.S. stocks for now.

Dan and Corey kick off the show by giving a sneak peek at their list of 10 things that would surprise investors in 2024 and where they predict the markets are headed. Specifically, they discuss the unassailable Magnificent Seven – which are "priced for more than perfection" – and why the high valuations aren't sustainable. While the other "Unmagnificent 493" stocks in the S&P 500 Index are essentially flat and it's "still a bear market for everything else," the Magnificent Seven have screamed higher. Dan warns...

The performance tells me that lots of people love them. And the problem I have with them is that at this point, they're viewed as absolute no-brainer great performers. They're "safe." I mean, they're trading at an average of like 55 times earnings. They're not safe. They're Cisco in March of 2000 at this moment, OK? They're not safe.

Afterward, Jared joins the conversation and gives some tips on how to make finance less stressful. He shares that it's important to not cut out small luxuries that bring you happiness, like a Starbucks coffee every now and then. Rather, he says to focus on cutting costs for the bigger items. He also explains that being too conservative with your money can be detrimental...

The vast majority of people are very good with their money, but the problem is that they spend too little. And the consequences of spending too much are: you're in debt, you're paying lots of interest, you could go bankrupt. But the consequences of spending too little are: it damages relationships with family and friends because you're cheap... The goal is to have a healthy relationship with money.

The conversation shifts to discussing the two main sources of financial stress: debt and risk. Jared explains that these sources of stress aren't correlated with how much money you have and instead are entirely based on how you structure your finances.

I know people who have no money, virtually no savings, they pay the bills every month, and they're happy because they don't have debt and they don't have risk. The richest guy in the world, Elon Musk... he has lots of financial stress.

Jared then talks about the market as a whole and shares some predictions. He covers why he has been focused on the bond market for the past six months, why he expects a recession next year, what he thinks will happen to Treasurys and interest rates, and the psychology behind inflation.

Lastly, Jared details why he owns essentially no U.S. stocks and instead has his money in Argentine stocks. Plus, he describes another emerging market that presents a "huge opportunity" for investors. As he says, "There's other places in the world to go where there's a lot more growth that are a lot more promising." Don't miss his thoughts on the best way to get exposure to that potential growth story.