IFB149: Economy Basics Pt1 – What Will Covid Affect

Announcer (00:00):

You’re tuned in to the Investing for Beginners podcast.

Finally, step by step premium investment guidance for beginners led by Andrew

Sather and Dave Ahern. To decode industry jargon, silence crippling confusion

and help you overcome emotions by looking at the numbers. Your path to

financial freedom starts now.

Dave (00:41):

All right folks, welcome to Investing for Beginners

podcast. Tonight Andrew and I have been talking, and he thought we would do it

all basics of the economy. So we haven’t taught, we’ve touched a little bit on

economics in the past, and we thought maybe this would be a good time

considering everything that’s going on with the economy in the world that

there’s going to be some dues of different things happening over the next six

months to a year plus that the talking heads on the news, we’ll talk about

things and it might upset people a bit. And so we thought maybe we could spend

a little bit of time and talk about some of those issues and some of the things

that are going on and help clear things up a little bit so that when you come

across things you, it helps ease your mind a little bit. So Andrew, why don’t

you go ahead and kind of start us off, and we can chat a little bit about this.

Andrew (01:29):

Yeah, sure. I think it’s very important to kind of

understand the economy and the right context. Obviously, as investors, we are a

big part of the economy and what the comment, what the economy does is going to

affect the businesses we own, the businesses in our portfolios, and how they

perform.

Andrew (01:49):

And so I think it’s very easy as an investor to get caught

in our little sliver of, well I have this business, I have that business. And

then you kind of take what you hear on the news, take what you hear, what you

see from the different publications, and you get little snippets from it, and

that’s great. But if you don’t understand the big picture and you don’t zoom

out and try to get a grasp of that, I think sometimes looking at that can be

more harmful than helpful. So as an example, it’s very easy for us to look. So

if you’ve listened to our podcast at all, you know that I am very, very big on

learning from the past and trying to understand that things move in cycles and

things that happened in the past tend to happen again, sometimes in a different

form.

Andrew (02:51):

So history doesn’t necessarily repeat, but it tends to

rhyme. And so it’s very easy for investors to make simplified ideas and make

big investment decisions out of those. And those don’t always turn out in the