5 experts’ tips on where the bottom is & what to buy

Maddy: [00:00:21] Hello and welcome to your In Good Company, a podcast that makes investing accessible for everyone. I'm Maddy Guest and as always, I'm in some very good company with my. Co-Host, Sophie Dicker. 

Sophie: [00:00:31] How are we, Maddy Guest today? 

Maddy: [00:00:34] Good guess what? But it is four and a half weeks until Christmas. 

Sophie: [00:00:38] Are you one of those people that likes to count down the days? 

Maddy: [00:00:41] It is undoubtedly my favourite time of year. So you think every episode between now could be an update on the countdown? I'm already listening. To Christmas carols. And I watch Love actually. I'm like,. 

Sophie: [00:00:52] Oh my God, classic. 

Maddy: [00:00:55] What's your favourite Christmas, Carol? 

Sophie: [00:00:56] I'm a Bublé fan. I love all Bublé. 

Maddy: [00:01:00] So what's that? Reminds me of your that. What do you want to call your dog again, Pablo? Yeah. 

Sophie: [00:01:07] Why does it look so good? 

Audio Clip: [00:01:11] I'll be home. For Christmas. 

Maddy: [00:01:17] Mine is Santa Tell Me Ariana Grande. 

Audio Clip: [00:01:19] Is that like saying, oh, tell me if you're really good? Oh, that's so good. I feel like you put it on rounds driving on that and you could know. 

Maddy: [00:01:30] What the smells like. 

Sophie: [00:01:31] I also feel like I'm really into the old classics, like the None of the remix. Justin DAVIES stuff. Yeah. Oh, they really get me going. Beautiful. The first generation did a money financial calendar. What are they called? Christmas calendars. 

Maddy: [00:01:46] oh advent calendars. 

Sophie: [00:01:48] Advent Calendars. And she was comparing all the most expensive ones, which is really funny like this. And now she's made one for finances. So if you're really into Christmas and you're really sorting out your finances. 

Maddy: [00:01:58] Oh, my God, how come I'm going to go check it out?

Sophie: [00:02:00] I know we should do a little Christmas one day of either chocolate. I don't know. Oh, I could think of. Okay. So yesterday I Was reading the paper. 

Maddy: [00:02:14] Go girl. 

Sophie: [00:02:14] As I do in the morning. It was like a. Good half an hour with. Coffee. I'm not working for a nice Rachel. It is a nice ritual. But I read this article that was actually like, what do you call it, clickbait. There was a. Clickbait I island. That had my attention and it said five expert tips on where the bottom. Is and what to buy in your wallet. Like, if you saw that article, you would be like, click. 

Maddy: [00:02:37] Absolutely. 

Sophie: [00:02:39] So I thought I read through the article. And there were some really good lessons in there, or quite diverse lessons and some I had never thought of. So I thought maybe let's run through the lessons from the experts and kind of give our thoughts. 

Maddy: [00:02:52] I love it. So, of course, this is not financial advice. This is us just chatting about investing and what we've read. But in this article, there were five different experts that gave their opinions or tips, I guess, to finding the bottom. 

Sophie: [00:03:06] So it's the experts listening to.

Maddy: [00:03:08] Exactly. 

Maddy: [00:03:10] Okay. So the first. Lesson was from a guy called Adrian Martucci. 

Maddy: [00:03:14] You love it from Bell Street Asset Management. 

Sophie: [00:03:17] And his lesson was to chip away and look at mid to small cap stocks. So before we jump into it, can you define what a mid-cap stock is? 

Maddy: [00:03:28] Yeah. So it refers to market capitalisation, which is the number of shares that a company has times a share price. Yeah. So I can't actually remember. Do you know what range? Like a mid-cap technically, is it? I think it's something of value. 

Sophie: [00:03:43] It's so massive. It's something like 2 billion to 10 billion. 

Maddy: [00:03:46] Nice. And people talk about sort of, I guess, diversifying the market caps in your portfolio. Yes. Because you're giving exposure to different types of companies, big companies, medium companies and small companies that I guess can all sort of perform differently in different market conditions. Right? 

Sophie: [00:04:02] Yeah. And I think the lesson that he was trying to say was you can look at these big companies because, you know, they might be a little bit safer or you might think they're a little bit safer. But the mid-cap range is really special at a time like this because there's room for growth. Often management is quite attached to the company because it's a bit of a smaller company, even though 2 billion is still massive. Yeah, and as you said, you can find that diversification. So instead of just having all in your portfolio, these big companies, you kind of bring a new, new element of size. 

Maddy: [00:04:35] Yeah. And I think it's quite interesting as well because I think in that range you have a lot of sort of owner led companies, you have a lot of people who are really sort of invested in growing these businesses, which especially in the Australian landscape, a lot of the times, these are the companies that we interact with in a really regular basis that we might not even realise are actually listed. 

Sophie: [00:04:52] Yeah, and I did a little bit of digging, so I was like, You're telling me because he wrote in the article that mid-caps have outperformed historically during times of volatility. Right. So I had a little Google to be like fact checked because I didn't see any data. We had a call, so I looked it up and it's actually true. 

Maddy: [00:05:08] Which. Why do you sound so surprised?

Sophie: [00:05:11] So over the a five year period, these mid-caps on the ASX have actually returned about 15%, whereas the large caps are sitting around the 8% mark, which is kind of make sense because when you look at like the big indexes, they say they return like 8 to 10% a year and they're usually comprised of a lot of the larger cap stocks. 

Maddy: [00:05:28] And I guess the other thing that I would sort of add on to that is when you take on greater risk, which you sort of are when you're investing in smaller companies because they're not as big and perhaps not as stable, when you take on that higher risk, you sort of expect or hope for higher return. Yeah. 

Sophie: [00:05:42] So the next thing I did was then look at the Australian landscape and say, ``What are the mid-cap companies in Australia actually investing? So number one, there was an ETF that I found, which we love an ETF when we don't really know everything. And then that told me what was in the mid cap space. So Vaneck does an ETF with a ticker MVA and interestingly it has things like Carsales, AKAM, Cleanaway ARIA group, which is real estate dotcom. If you're a renter, you have probably used that site before. 

Maddy: [00:06:13] Yeah.

Sophie: [00:06:13] So it kind of is cool because. It gives you a lot of diversity. 

Maddy: [00:06:16] Yeah. 

Sophie: [00:06:17] But in saying that, a lot of the top ten companies are in mining and coal. So it's not a super sustainable one. 

Maddy: [00:06:23] Good to know. And very exciting because next week we have lined up Eleanor Swanson to do an episode. She is a small cap investor from five shale investments and we are going to be learning more about this space and how to invest in it. 

Maddy: [00:06:37] True, actually. Great. We're going to get like, yeah, that's good timing because today I was fully doing research making like how do I learn about mid-cap stocks? I'm such a sucker for an article. That's cool. 

Maddy: [00:06:48] Okay. So to summarise, lesson number one is chip away. Keep investing at regular intervals even though the market is down and maybe look at some small or medium sized companies, especially if your portfolio is weighted on the biggest side. 

Sophie: [00:07:03] Lesson number two is earnings ratios close. And this was from Alexis Wheatley, who is a wealth advisor at Wheatley Wealth Management. 

Maddy: [00:07:12] Okay. We're going to have to explain this. One. Earnings ratio is okay. What do we mean by that? Let's start with the basics. 

Sophie: [00:07:18] So earnings ratio is P E ratio, which is price to earnings ratio. Okay. And even though we've spoken about this on the podcast before, every single time I still have to go look it up and remind myself how to explain it and how to understand it. Okay. So price to earnings ratio, pretty much what it's trying to tell us is that it compares the price of the stock to how much money it is making. So. For example, I'll give you some numbers so it starts to make sense. You have a price to earnings ratio of ten times. You would earn $1 modestly. You got that $1 in your pocket for every $10 you put into the stock market. So you've got that in your head. If you put in $10, make $1. 

Maddy: [00:08:02] Got it. 

Sophie: [00:08:03] So then if you've got a price to earnings ratio of, say, 20. 

Maddy: [00:08:06] Yeah. 

Sophie: [00:08:06] That means you earn $1 on every $20 you put into the stock market. 

Maddy: [00:08:11] Makes sense. So how do I know what a good pay ratio is? 

Sophie: [00:08:15] So pretty much what it's trying to show you is whether something is considered expensive or not expensive. So your $10 one, you consider maybe a bit cheaper than your $20 one. Yes. What you would consider expensive or not has to be based on the industry. So for example, if you have something like Coles and Woolies or supermarkets and let's just say their pay ratios sit around the 20 mark, but Woollies pay ratio is sitting at 50. You would consider that expensive. 

Maddy: [00:08:43] So boys are more expensive than Coles in that instance. So I think the key takeaway here is there's not necessarily one pay ratio that is good or bad, but it's about comparing to, I guess, a company's competitors or comparing a company to the other companies in the industry. 

Sophie: [00:08:58] Yes. And what this article was saying is that over 2020, we had a lot of companies be overvalued because people were pumping money into the markets and you were saying crazy valuations. And that was why we. 

Maddy: [00:09:09] All made so much money on our investment. 

Sophie: [00:09:11] Anymore. But what they were saying is that now things are starting to come down. So it's a factor to maybe look at and like, you don't need to be advanced in this stuff. Like it's just it's honestly just a Google. Like I googled woollies and Coles. Woollies pay ratio, by the way, is 50. I think it's lower than course. 

Maddy: [00:09:28] That was going to be my next question: where do you actually find this information? Are you going to companies financially? Reports or. 

Sophie: [00:09:33] You can just literally Google.

Maddy: [00:09:35] Yeah. 

Sophie: [00:09:35] Woollies pay ratio, Coles pay ratio and. 

Maddy: [00:09:38] Then super Australian supermarket average pay rises. Year. Yeah.

Sophie: [00:09:42] And so I think yeah, they were just saying that watch these ratios come down potentially and if they're sitting really high then maybe a stock is still kind of sitting in the COVID bubble kind of needs to be hit by the inflationary impacts, interest rates, etc.. 

Maddy: [00:09:57] Yeah, I guess it's an interesting comparison to say why the pay ratio is sitting now compared to where it was 6 to 12 months ago. 

Sophie: [00:10:03] Yeah, exactly. But one thing I would caution is that every industry can be quite sporadic, like, for example, tech. Tech pay ratios, historically likes, can be considered quite high. And some people would say that if there's a high pay ratio, it means that it's got more room to grow. So it is good to. Come try and compare similar companies so you get a bit of an understanding for it. 

Maddy: [00:10:25] Yeah, because I guess the other side to that story is people are willing to pay a higher price for a company that they say has a lot of potential growth in the future than they would for a more stable company example. The pay ratio is going to be higher. 

Sophie: [00:10:39] Exactly. Now, I historically have never. Looked. At pay ratio. 

Maddy: [00:10:45] I was going to say, have you ever actually tracked the pay ratio of a company? 

Sophie: [00:10:49] Never, because but to be honest, like until I read this article, I was like, I didn't really think of it as useful, which I might sound dumb to some people. It might sound like a really normal time. Yeah, but like reading that, it made a lot of sense. I was like, Oh yeah, if you like, compare and you can see if something's overvalued. After a time where there has been a lot of overvaluation, then it's like right now, in this exact moment, it's really useful. 

Maddy: [00:11:14] Ratio. Yeah, I think something that I would like to get better at doing is maybe putting it on the record to try and keep myself accountable. God is when I have an idea about a new investment, actually tracking it for a while. Like I think what I do is I come up with the idea that I have and I think about it. I write about the company, but I don't actually like to track the price of the stock, so to speak. Which. I think it is because I have that long term investment. So it's going to go up hopefully if my thesis is right, in the long term. But I think I would like to become better at actually tracking things like, for example, the pay ratio to maybe guide myself a little bit more. 

Sophie: [00:11:54] Yeah, like to dabble a little bit more in the financials to really get an understanding of the company. 

Maddy: [00:11:59] I mean. We literally work in finance and I don't apply any of the skills that I learnt in my own personal investments. 

Sophie: [00:12:06] But also you don't even need to finance like it's a nice, simple Google. You just, you know what that. But sometimes it's so hard to wrap your head around. Oh, my God, it took me like an hour today. 

Maddy: [00:12:14] We're here for a ratio until, like. 

Sophie: [00:12:17] You get one solid example and. Okay, I got it. 

Maddy: [00:12:19] So after I just said that there's no actual good pay ratio and you compare it to the industry, the article actually does say that there is a good pay, right? 

Sophie: [00:12:32] Well I think Like an industry, not an industry. I think a general rule of thumb is that anything below 15 is really cheap. No, not really cheap. It's a cheaper pay ratio. Okay. So if you. 

Maddy: [00:12:43] Could take that in the back of your mind. 

Sophie: [00:12:44] Exactly. But also like if there's an industry where the average age is, then it's not cheap, but it's just like an industry rule of thumb. And the article says, look for a PE ratio between 15 to 18. 

Maddy: [00:12:54] I feel like in the last 3 minutes where you have just said things and then contradicted. Ourselves on repeat our financials. But I also don't care about them. They have it easy. I don't care if this is the right number. Oh my God. 

Sophie: [00:13:08] But of course, I was like, all right, well, what pay ratio is sitting at 15 then? So why did I go and do Google? Would love it but she's under 15 Macquarie as classic Goldman. 

Maddy: [00:13:18] Really, that's so interesting. 14.7. The reason why I find that interesting is because that is one of the shares that for me has actually continued to be in the grain when everything else has gone in the red. So in my mind because share prices would be high, yes. Means that maybe the pay ratio wouldn't be so good. So that's good to know. Yeah. But I guess what's relevant then is what's like the average for the banking sector. Is that really high compared to its competitors.

Sophie: [00:13:45] This is live researching folks. Average Australian bank p e ratio. Is. 14.4.

Maddy: [00:13:56] Wow. Because if it was lower, I was going to caveat that by saying whilst Macquarie is a bank, they also have a lot of other parts of that business management and things like that. So it's not so much of a straight up black compared to other banks, but similar, interesting. 

Sophie: [00:14:11] Very. Interesting what that means. And NAB is yeah. 14.8. So they're obviously all sitting around a similar. Yeah, but you maybe kind of expect that a little bit because like banks it you know over COVID people were still putting money into them they weren't as affected by this whole overvaluation kind of hype.

Maddy: [00:14:26] And banks are doing well at the moment, I believe, because they benefit from interest rate increases. They're going to get more money in their pockets. 

Sophie: [00:14:34] So to summarise, lesson number two, it's if you want to dabble in it, look at the financials, maybe have a look at pay ratios, start getting familiar with it. And if you've been investing in spaces which have been overvalued, maybe during the COVID period, just to consider it as a metric to use in your next thesis building.

Maddy: [00:14:51] We would love to know if you want to learn more about this area and maybe we can do some episodes on it in the future. Otherwise, if you do have questions, please send us a DM at YIGC podcast on Instagram or jump in our Facebook group? Because we love talking about it. We want to talk more. We want to learn. 

Sophie: [00:15:08] Lesson number three is it's impossible to pick the bottom, which we've said. Lots. But net zero. A trend is worth watching. And this is from Blair Hannan, the head of investment strategy at Global X ETFs. 

Maddy: [00:15:22] Look, I'm looking, I'm looking to the future because the past time. Pretty nice. Well yeah. The last this year hasn't been. No. But like we've said before and we will say again, unfortunately there is no way to pick the bottom. We don't have a crystal ball and we cannot say into the future. But I do still think that hearing all these different perspectives is a really interesting way to sort of, I don't know, I guess, engage in your own investing journey. Yes. 

Sophie: [00:15:51] Well, I thought this lesson was interesting in particular as well, because there's been a lot of hype around investing in sustainability and climate change or whatever. But no one's really saying I mean, people have seen the benefit of it, but it's being slaughtered a little bit at the moment by what's happening in the market. So this lesson was just patient funds coming through to it. We're going through a pretty crappy time. And if this crappy time like wasn't happening, maybe you'd be taking off. 

Maddy: [00:16:13] A little bit. Well, yeah.

Sophie: [00:16:14] Which I find interesting.

Maddy: [00:16:16] Well, I think a lot of the companies in this space, which we're going to go into in a second, are small, sort of startup tech companies that aren't necessarily big profit generating companies that we sort of know on the ASX. Yeah, Blair actually talks about a couple of areas that he's particularly interested in and they are battery technology, hydrogen carbon allowances and green metals. 

Sophie: [00:16:40] Yeah, which are. All. Areas I find interesting. But I really struggle in this space because in a previous lesson that we had in my future episode that we did, we were talking about investing in profit making companies. And because a lot of these companies, as you said, are small and they're growing, they're investing a lot, they're not actually making a profit yet because all their profits are going towards building their company. Yeah. So I really am in a bit of a tricky mindset of where do I invest for sustainability reasons, but do so without the worry of I don't know if they're going to have money to make it to tomorrow. 

Maddy: [00:17:14] Yeah, well, I think one thing that we often talk about is the transition company. 

Sophie: [00:17:19] So yeah. 

Maddy: [00:17:20] Looking at what the big companies are doing at the moment, I mean, there's lots going on in the news with energy companies in Australia at the moment, Origin, AGL. So I think there are a lot of big companies that are in this space that are trying to transition. So I think that's another space to look at as well. 

Sophie: [00:17:37] I was like waiting for you to bring up the whole I kind of person. 

Maddy: [00:17:40] I didn't even say his name. I know I held my tongue. 

Sophie: [00:17:44] I feel like someone that's in the twins and they're watching the Internet being like, is it going to take off? Because I know. I know it is. Yeah. But I'm so worried because I've been burnt by so many loss making companies. You know, it's not they're sustainability and climate change. And I think all the technology is amazing. But I'm like, I don't know where to put my money because I don't know which one is going to take off. And like I know I'm. 

Maddy: [00:18:01] Loss making though. I know I know a. Lot of the exciting ones are. 

Sophie: [00:18:05] Yeah. So I've got to look for, as you said, like a transitioning company or someone that's got profits. And I'm going to delve a little bit deeper into it because I've been so bad. 

Maddy: [00:18:14] Yeah, yesterday I had PTSD and you.

Sophie: [00:18:18] Know, it's so funny. The first thing I do now and I'm looking at. 

Maddy: [00:18:20] New companies are literally.

Sophie: [00:18:22] Their financial statements of just their profit and loss. 

Maddy: [00:18:24] Look, are you letting me know because I'm like, is there a profit out? 

Sophie: [00:18:28] Like, I found a really cool company the other day and that way they spoke about it and one of the investors spoke about a company called Calyx. Yeah. Which they do. 

Maddy: [00:18:36] This half a few. 

Sophie: [00:18:37] Times. Such a cool technology which honestly, when you read about it, you like this is going to save the world, but then they're loss making. 

Maddy: [00:18:44] But you know what? I think we need to premise this topic by telling you the reason why you are avoiding loss making companies at the moment is because your portfolio is heavily weighted to loss making companies. It's not to say that you shouldn't invest in loss making companies. 

Sophie: [00:18:59] So this is why you need a psychologist, because you just laid out all my emotional thoughts and said it. 

Maddy: [00:19:04] Really violates me. And now I understand what's going on in my brain. Hybrid therapy. Yeah. So to rehash, it is impossible to pick the bottom. So stop trying. But net zero is a really interesting area to watch. 

Sophie: [00:19:18] And on that note, we're going to take a quick break for our sponsors, but we'll be right back to jump into the final two lessons. So lesson number four. I found the most interesting. Took the most out of telling me. Keep your eye on the fear gauge. What is the fear gauge is the question that's happening in your brain. 

Maddy: [00:19:40] Wolf Festival Who gave a lesson? If it's your favourite one, you've got to credit them. I love you. Just think given who said that? What is that? So the lesson. Is by. Todd Haugh. 

Sophie: [00:19:53] Who's the head of equities at LGT Stone. 

Maddy: [00:19:56] Go, Todd,. 

Sophie: [00:19:57] Go. I told you so. What's the second question? You think? 

Maddy: [00:20:01] What would be a gauge? Tell me.

Sophie: [00:20:04] So he said that there is this thing called. He didn't say it's been in. Existence for a while. But there's this thing called the VIX or the VIX Volatility Index.

Maddy: [00:20:14] Oh, I do know that. Yeah.

Sophie: [00:20:16] I feel like maybe you've even told me about it before because it kind of rang a bell when I looked it up again. 

Maddy: [00:20:20] Yeah. Is there a VIX ETF like this? Volatility. To. Not sure, maybe. 

Sophie: [00:20:27] And it pretty much is an index. Or it represents what you'd say, like a share graph or whatever. But it represents the market's expectations of volatility over the 30 days that are coming.

Maddy: [00:20:37] Yes. 

Sophie: [00:20:37] So if you're on your phone right now, Google VIX, and you'll be able to see the little graph and it will give a lot more context to what we're saying. 

Maddy: [00:20:45] But if you're driving and you need to picture it, I want you to imagine a graph with the line going from left to right and when there are periods of lots of uncertainty. So for example, the global financial crisis or just before COVID or during COVID. Imagine big spikes like a lot like a yes, yes, yes, yes. You might be. Your mom's a doctor. What? Well, it's quiet. Know you. 

Sophie: [00:21:10] Should know this. What is it called? A heart monitor. 

Maddy: [00:21:13] Yeah. Yeah. One of those that you said was a heartbeat. So imagine that. And when it's stressful, high volatility, it spikes up really quickly. 

Sophie: [00:21:21] Yeah. And Hayes' lesson was so also to give context the straight bit of the line sits at around like the 12 mark and then these big spikes. The GFC got up to about 80 during that.

Maddy: [00:21:35] 80 what. 

Sophie: [00:21:36] 80, 80. Just 80.

Maddy: [00:21:39] Got to 80. 

Sophie: [00:21:39] Heartbeats. I mean it's stressful. Yep so the normal high. All right so I'm going. That's actually what.

Maddy: [00:21:47] It is a good analogy. 

Sophie: [00:21:48] So the global. Financial crisis was sitting at like 80 and then the time during the March 2020 period it got to about 65. So they're big spikes compared to around 12. Mark And what his lesson was is that when this index hits about like 40 and just about 40, that's where they start to think the bottom is. Oh, but I don't know how true that is because obviously the global financial crisis went to 80, which is double 40. 

Maddy: [00:22:16] And historical performance is not a predictor of the future. 

Sophie: [00:22:18] Absolutely not. But it was interesting because I had never really looked at this graph associated with this graph. But, you know, where it's sitting at the moment, oh. 

Maddy: [00:22:27] What is it? 

Sophie: [00:22:27] 22. 23. 

Maddy: [00:22:29] So what was the average eight? 

Sophie: [00:22:31] Around 10 to. 12. 

Maddy: [00:22:32] Okay. So it's up. 

Sophie: [00:22:34] It's volatile. Times. It's a volatile time. But if we're talking 40, we still got another 20 to go. We've got to double our 100%. Yeah, we've got 100%. That's a lot. 

Maddy: [00:22:44] So I guess if we. Zoom out. A little bit in times of volatility, it basically means that share prices are moving a lot, right? Yeah. Volatile up and down. So I guess what Todd then goes on to allude to is the fact that in times of volatility, when we do get this share price movement, big jumps, big ups and downs, there are chances to buy really quality companies at lower than normal prices. 

Sophie: [00:23:07] Yeah. So like, have you a little volatility index right in the back of your mind thinking where we have. 

Maddy: [00:23:13] Which I guess links back nicely to the previous lesson about pay ratio, maybe some of those quality companies that you're looking for because of high VIX. The pay ratio has come down. We're going to do a graph, we're going to have to visualise that. 

Sophie: [00:23:30] So wrapping up Liz and I before it's just to keep in mind that there's something called the VIX index. It talks all about volatility and Todd thinks that if you hit around 40, that's where you start to see the bottom, which by the way, this is nothing to do with financial advice. This is not financial advice. 

Maddy: [00:23:47] But also with this volatility comes opportunities to invest in companies that. You like it. 

Sophie: [00:23:52] 100%. Now, a number five. The final lesson I got to the end of the article took me a while to get there. I'm slow. reader. Are you a fast reader? 

Maddy: [00:24:02] Depends how much I want to take in. Okay. Like I can skim and get the gist, but it depends how much you want to learn. 

Sophie: [00:24:08] Lesson number five is there is still more room to fall even. That's what Todd thanks. Or only at 20 on the index. So dollar cost averaging could be the solution. And this was by Helen and the principle at Plan for Your Future. 

Maddy: [00:24:23] This is probably my favourite piece of advice. 

Sophie: [00:24:25] Yeah. And it's the one that we have on. About all the time, because I think it just reflects you and me so perfectly. We're not experts. We have no idea. We have some idea of it. We've been talking to a lot of people, you know. But just to stay consistent, I like to keep it in your routine. Like once you take three months off, like it's so hard to think again about it. 

Maddy: [00:24:45] Yeah. And I think depending on how long you have been investing, you may or may not have seen or experienced, I guess, the benefit of staying consistent. Yeah, and I've definitely talked about this before, but getting in during COVID, when the market did come off and was low and I managed to keep investing consistently during that period. Now that the market is higher than where it was, I can still say even though things are down at the moment, the payoff of that, yeah, I think that has been such an incredible perspective at a time like this when the market has gone down. 

Sophie: [00:25:16] Kind of reminds me of the first bit of the article from the first lesson. Adrian He actually there was a quote in the article that said, like employing these strategies and whatever, being consistent and because he said cheaper way when you look back, it will really help with your investing confidence because you'll come out of this down cycle richer, not only in terms of financially, hopefully in the future, but with that confidence because you have the persistence to kind of stick through it. Yeah, and I think that's really true because like, say you invest throughout this whole period and you see it keep going down and eventually it goes back up at least like the next time it happens, it's, I've done this before. Yeah, I can keep going. It kind of gives you that like validation. 

Maddy: [00:25:53] 100% and you don't know when the bottom is happening. You don't know when the best days or the worst days in the stock market are going to take place. And often there are really big movements in one day. So I think if you want to be in it, then consistency is key. 

Sophie: [00:26:09] So her summary of her lesson is stay on course and stick to your long term goals. Love it. Pina coladas. 

Maddy: [00:26:16] Margaritas. 

Sophie: [00:26:18] And order. No change to pina coladas. I was in great delight even now, just playing on the soundtrack. 

Maddy: [00:26:22] We're going to be different. All right, so recommendations. What have you got for me this week? 

Sophie: [00:26:29] This week I have. Got Hamish Blake's news. Podcast. 

Maddy: [00:26:33] Oh, my gosh. I've been wondering about this. 

Sophie: [00:26:35] Yeah, it's called How Are the Dads? Dad. 

Maddy: [00:26:38] Is this two ex in a row? Very recently I also recommended a parenting podcast. 

Sophie: [00:26:43] Oh yeah, I did.

Maddy: [00:26:45] What is going on?

Sophie: [00:26:45] On? Nothing's going on, I can promise. But it was actually just on my recommended package on the podcast thing. And then you see Hamish Blake's face. Yeah. And you're like, I'm walking home from work. I want something funny. 

Maddy: [00:26:55] Yes. 

Sophie: [00:26:56] And then you. Click. It. 

Maddy: [00:26:57] Also feels like I was talking to a friend about this the other day saying It's so weird that I saw Hamish has a new podcast. I want to listen to it because it's literally about being a dad. I know that just couldn't be farther from my own personal life. [00:27:08][10.7]

Sophie: [00:27:08] Well, his first guest is Hugh then.

Maddy: [00:27:11] Yeah, yeah, I come back, so.

Sophie: [00:27:13] And it's just so funny and, you know, it's also really funny, but I never knew which one. Hugh was perfect. Yeah, okay. And so then I listen and I'm like, oh, that's him. Yes. His voice is really distinct. 

Maddy: [00:27:26] Yeah. I wonder if people say that about us. That is Maddie. Hey, Sophie. Probably. I'm Maddy. Guest,. 

Sophie: [00:27:32] I'm. Sophie. What's yours? Recommendation? 

Maddy: [00:27:35] I'm going to sneak in. I listened to the new episode of Diary of a Sailor yesterday with Whitney. We've heard of one of our favourites, an old time goal I think to get on the podcast. Yeah, CEO and founder of Bumble. It was such an incredible episode in particular I really love it. She talks about what they did in the early days to get traction with Bumble and sort of get it off the ground in terms of their original ideas around marketing and advertising and it's just so clever. Yeah, they talked about how they one story was they used to send people into class at college 15 minutes late wearing a bamboo tayshia and they'd walk in, make a big like kerfuffle and then get, Oh, I'm so sorry, I'm in the wrong class and then walk out again. But they would have everyone looking at that person and everyone saying that Bumble Tayshia. Wow, that is such an incredible way to get people familiar with the brand. 

Sophie: [00:28:28] Like, who's that annoying person? Yeah. 

Maddy: [00:28:31] So that is my first recommendation. My second one, I feel like bad recommending this because I feel like I always recommend imperfect, but this is probably one of my favourite episodes ever on the show. It was a two part episode with Kate Reed. Who literally. Combines like The Love of my life, which is Formula. One and food. She used to work at Williams for those who know Formula One as an aerospace engineer and talks about the incredibly intense environment that she experienced, they're truly wanting. She also talks about her, the eating disorder that she sort of developed during that time, and then how she sort of came back to Australia and found herself creating what is now Lune, which is like the best crescents ever. Yeah. Based in Melbourne. So incredible. Really, really, really cool story. 

Sophie: [00:29:21] Yeah, she's a really good speaker as well. Like very engaging, easy to listen to, which I really. 

Maddy: [00:29:25] Would love to get her on the podcast. That would be. Yeah. 

Sophie: [00:29:27] Everyone just. Yes, sure. Okay. Well, Maddy, thanks for. Taking the time today. 

Maddy: [00:29:34] With me. I got you. 

Sophie: [00:29:43] No, but seriously, if you're. Enjoying these episodes, feel free to share with a friend. We are coming up to a new year and people are looking to change their money habits, get into investing, save a little bit more, and recommend them back to our summer series. 

Maddy: [00:29:57] Because almost a year ago and now I'm done investing in conversations, every millennial should have that six part up, which is really, I think, the perfect way to get started in this space. 

Sophie: [00:30:06] Find us on Instagram at YIGC. Podcasts.

Maddy: [00:30:10] On Facebook, at YIGC Investing, a podcast discussion. Group. 

Sophie: [00:30:14] And. leave a review, write a review, subscribe to all that jazz. 

Maddy: [00:30:18] We'll be grateful. Thanks, guys. Catch you next week. 

Sophie: [00:30:22] Bye.