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