 This is St. Tech, Hawaii. Community matters here. This is Prince X. This is the Prince of Investments coming all the way live from a beautiful state of Denver, Colorado, via Hau'ulu, Hawaii. For everybody that's tuning in, don't forget to hit that like, subscribe, comment, and share button who's catching us live out in Hawaii. And for the people that are catching the playback on the YouTube or the podcast, don't forget to hit that like, subscribe, comment, share button. Drop comments below. But as always, I don't have a lot of time, and I definitely know you guys and girls don't have a lot of time, so we're going to jump straight into it. So in today's episode, we're going to be talking about, you know, you said in the description box, we're talking about 401Ks, right? Because, you know, hey, my 401K is down. What now? Man, the market is sucking, the market is stinking it up. I was doing so great last year. I put more money into it. Now what is happening? What is happening? You know, the market is taking a downturn. What can I do to my portfolio? What does this mean? What do you got to say about this price? You know, you guys are always talking about this investment stuff, so here it is. So the first thing, why your portfolio is taking a downturn is because as we all know, it has been, ever since October has came, it has been terrible. But it hasn't been terrible. What I mean is it has been terrible for returns. Guys, guys and girls, if you've been following it and been listening to me for a while now, you know that I have been speaking about the market taking a downturn. What is the downturn going to happen? I thought it was going to happen in 2015, right around election time, but it didn't. The market actually went up. It was going up. It was going up. And I was kind of worried because when was the last market crash? 2008, right? The last market crash was in 2008. And we know about every three to five years, we see a market collapse, a financial collapse. But what has happened is we have seen a big market run ever since 2009, 2008 happened. March 2009, we started to uptake. And since March 2009, all the way into the 5th of October, we've been on the up, we're still up with market, but we've been in the up with market ever since, which is called a bullish market. Bull means going up, bear means going down. And since I mean 2009 to 2010, 11 to 12 to 13 to 14 to 15 16 to 17 to almost 18 into a red October. I like to call it red October. Until the month of October came around, we've been set a downturn. And now we've practically lost all the gains of 2018 have been, you know, have disappeared without 17 points. 17 percent ever since on the S&P 500 since the top. Now, Prince, you don't seem worried. Prince, what does it have to do with me? The reason why I'm not worried is because this is a healthy downturn to market. The market moves the cycles. What are those four cycles? You have a you have a trough, which is the bottom of the market. Then you have a expansion, which means that you're coming out of the bottom of the market. Then you're going to get what's called a peak. A peak is just what that is a peak. Then you have a downturn to market, meaning that when you go down, you have what's called a recession or a retraction. Then you go into the trough, then into expansion to a peak. So I had been, I had been saying, you know, you have characterism when you're in expansion. And expansion means that unemployment is low, right? Unemployment is low. I mean a lot of people are working, corporate profits are high, taxes are lower. So you're seeing high corporate profits. High corporate profits mean a high stock market. When people make more money, they spend more money. Everybody has jobs. You know, all these things that said it was an expansion, but when in expansion, I was wondering, where's the peak? Where's the peak? Where's the peak? Because I know what has happened to repeat? The contraction, recession. So the way the market is looking since October, it looked like we're headed into a recession. A recession is 20 percent. We're at 17. We're almost close to being in a recession, right? So some people say, oh, it's due to the tears, it's due to Trump. It's a much needed cycle. And I was waiting on this cycle because I retired from the military in four years. So I had been waiting on a I want to see the market go down. I don't want to go down right when I'm going on to the real world. I want to see it go down. I want us to be on the up and up when I came out. I want us to be headed for expansion or in expansion, right? Because during my 15-year 10-year military career, 15 and a half years of military career, I've seen ups and downs in the economy that has affected the actual military itself, where it's downsizing, cuts and things like that. So I've been able to survive them so far. And in my career, I said, hey, well, I want the market take a downturn because when the market takes a downturn, it turns red. When you go into a store, when you see a red tag, what does that mean? That means there's a sale. That means there's a sale. That means, for example, I can buy more. So anything, if you're going out there to contribute to your 401k, the first thing you should be listening to do is ways to up your contribution. Move about 1%. You probably won't even move it. I need to take my own medicine and go move mine 1% as well. Move without 1%. If you was doing 6%, 7%, 8%, listen to moving it out 1%. Now, granted, I don't know your whole financial picture. I don't know what your credit card debt is. I don't know what your mortgage is. I don't know what else you have going on. So technically, I can't give you a record mendation. I would advise you to look into, if you're contributing to your 401k, look into taking advantage as the market takes a downturn. These are the times you should be taking a downturn. But what do people do when the market is taking a downturn? Well, I'm going to wait until they hit the bottom. Then I want to jump in. That is the singing way that you can time the market. If you can time the market, please give me a call. Please email me. If you can time the market 100%. And that is to say that most people cannot time the market. Most people won't be time the market. And not saying that is a bad thing. We're saying that, hey, if you can't time the market, then you have to, if you can't time the market, then you have to invest consistently. DCA, what is that called? Dollar cost averages. You pay the market like you're paying a bill. You're doing it over and over and over. So when it's going up, it's going down. You don't care. You're still jumping in there regardless, right? So now, Prince, I have my 401K. The first thing is to do, look at more ways you can contribute more. Okay, Prince, I contributed more. What should I buy? What should I contribute to? It doesn't matter what company you with. It doesn't matter who you work for. If you offer 401K, by federal law, they must offer you an aggressive fund, an aggressive fund, a moderate, and a conservative fund. A conservative is something like bonds, something considered to be a bond. You got a conservative which is considered to be a bond. Then you may have a moderate, maybe something like more so, like a broad-based index, S&P 500 that you may have aggressive, maybe something like a small cap on international. I would say small cap and S&P 500 may be considered moderate, but international may be something maybe on the risky end. Now, what I would do, and I would tell you why, I would look into the contributing line money more into the S&P 500, a broad-based index of common stock. Now, this is not for everybody. If you're 65 years old, getting rid of retire next year, I would tell you to go ahead jump about a bunch of stocks because we might be here for a recession for the next two years. If you're someone like that, you may want to go into something that's more broad-based, fixed, right? Something like a bond or something like that. So, if you're a younger person, if you're someone who has a time horizon, a time horizon is someone who's not looking to take out this money. I needed this money for the next five, one of these 10, you're a long-term investor. If you are a long-term investor, I will look into jumping into things like common stock or small cap, large-cap, small-cap stocks where I was looking to. So, if you are a military person, you have something called the C-front, common stock fund. If you have anything related to the S&P 500, look into that, right? So, now you have that's one thing. You can look into doing. The second thing you can look into doing is, the second thing you can look into doing once you are moving your money to the common stock is if you have money inside of a bond, if you have a fixed annuity or anything like that, you can look into selling some of those shares to get involved in some of those common stock things, right? These are for a long-term people. If you're someone who's short-term and you're saying, man, what am I going to do? My portfolio is kind of going down. I need this money for a predicted date. You should sit down and seek the help of a financial counselor, financial advisor, financial planner. Someone with CFP behind their name, at least AFC behind their name, right? Or CFP, CPA, what I would say CFP, AFC, or who else is out there? Maybe possible, or CFA. So, the thing about why am I saying that, Prince, why are you saying this? Why are you recommending this or not? I'm going with those destinations because at least I know that they at least should be competent to know how to give out proper recommendations on what's going on. You may have a family member or a cousin that's great. I mean, they have my manager that is great, but just broadly speaking, I'm just looking at those things saying, hey, they have these, they should be able to give you some worthwhile knowledge. So, if you're a person that's short-term, you should be looking to, you shouldn't have that much inequities. If you're someone who's looking to see you get out of college, retire, make sure you're something like that, you should have most of your funds, activity of funds. I want you to have something that's more of a fixed income, something like a bond, something like bonds or government bonds, something that's a little bit more secure. Now, something that I told people to do a while ago was I'm selling my fixed income. All those bonds that I was purchasing as the market was up, I purchased some bonds. Now, as the market is down, I'm selling my bonds and I'm buying more equities, right? So, I pretty much liquidated my bonds and started to buy more equities as the market continues to go down. So, I can take advantage of the equity market common stock as they go down, in particular, six with more, hope you don't mind. Prince, what are some other ways I can take advantage? One, up your contributions to your 401k. Two, looking to slowly buy more and more common stocks as common stocks are going. Three, if you're a long-term investor, look at your portfolio, get out of those bonds, I would look into reconsidering, making my portfolio more aggressive to take advantage of common stocks and small cap stocks as they are becoming more and more on sale. So, think about it, look at a company like Berkshire Hathaway, look at a company like Amazon, look at a company like Nike. Nothing has happened fundamentally, financially, or fundamentally financial that has happened. Since that has not happened, you have to go back and you have to, nothing, since nothing financially has happened to a Berkshire Hathaway, why did he go from $220 to $196? Nothing's wrong with it. It was the same mindset you have to look at. When you look at a shirt that's on the shelf that was $20, now it's $5, you're like, hmm, I wonder what happened to it. And they're like, well, it's a long sleeve. And you're like, and it's summertime is coming. They're trying to get real, like, okay, well, nothing's wrong with the shirt. So, you were still buying the shirt that you look at as a sale. That's how I start scavenging the market. It's nothing fundamentally, financially, has happened to the company, it has the same revenues, nothing has happened. I know that you're going through a cycle. Just like what I just thought of, just like retail, because we all know retail, we all buy something, women, whatever, women, men, we all buy something. We know when it's summertime, all of the pants, all of the plaid shirts, all of the long sleeve shirts, coats and jackets go on sale. Why? Because the summertime is coming, right? Then when it turns winter, just what goes on sale, all of the shorts, all of the bright colors, things like that go on sale because they're making room for the winter collection. So, it's a cycle. Same thing with the market, right? I look and say, wow, Berkshire Hathaway is class B shares for 220 bucks. Now it's 196 bucks. What happened? Nothing happened. Financial to the company, nothing has happened. Financial to the company is just following along on a cycle. So, guess what? When it's the wintertime, you buy your summer stuff. When it's the summertime, you buy your winter stuff. You can buy a couple of pieces in there and whatnot, but take advantage of the natural cycle. Yes, we have tears. Yes, we have threats to government shutdown. Yes, we have all type of trading wars and tears, things like that going on. But those are things that naturally happen in the economy. Naturally, it happens in the economy. If you go back to 2008, you'll see the same thing. When you go back to 2000, you'll see the same thing. When you go back to 96, you'll see the same thing. You always will see the same thing over and over and over and over. So, you have to be mindful of those things. You have to be very cognizant of what's going on and what's happening. So, now take advantage of your contributions for the 15 time. Look into taking advantage of those common stocks, small cap stocks. If you have things into a bond or you have any type of very conservative thing, take advantage of the common stock. Why would you take advantage of the common stock? Because those bonds, they're not really on sale. They're more conservative. Yes, you're not going to lose, but you're only gaining one or two percent. If you're someone who's older or someone who's looking, that doesn't mean that you're older. You're someone who's closer to retirement and you don't want to take advantage of these things. This is what you should do. You should now look into not common stocks. You should now look into moving some of your money into more sturdier things like you should be going opposite, moving things to like fixed income, maybe some type of annuity, maybe some type of government bond, maybe some type of fixed-income bond, long-term corporate bonds, corporate long-term bonds. Now, here's another trick with bonds. When you watch bonds, bonds have ratings. Just like we have a credit score. Someone has a 200, 300, 400, 500, 600, 700, 800. Bonds get credit scores too. I mean, not bonds, but companies get credit scores too. When you go to purchase a bond, a bond is pretty much telling you what's that ability, how much debt the company has, and it's ability to pay it back. Once you have that, that is another big ticket item as well. Looking at what is the bond credit rating for? What is the bond rating for Amazon? What's the bond rating for Microsoft? What's the bond rating for Berkshire? What's the bond rating for McDonald's? The bond rating tells you if you're a quick synopsis of, if there's a grade A bond, grade B bond, grade C bond, or a junk bond. The higher rating the bond has, the less it pays out in interest. Just like you, the higher your credit score is, the less you pay out of interest. So those are some tricks and some tricks. If you got your 401K, I've seen so many people, oh, my 401K is doing bad, because what did people do last year when the market was up 20%? People got excited. They started to buy more. Now the market is in the dumps or head towards dumps. Not looking too good. Not what are people doing. They're starting to sell. They're starting to invest less when it should be invested more. Just like you were going, if you went to a store and you saw milk and eggs for 50% perfectly fine, guess what you would do? You'll buy a lot of the USA band. It's on sale. Let me buy a bunch of it, right? Same thing you should do here. But anyway, guys and girls, that's my time. My name is Prestige. As always, thank you for catching me live on Think Tech Hawaii. You can catch me live on Think Tech Hawaii every other Friday at 3 p.m. Hawaii time. That's every other Friday, 3 p.m. Hawaii time. But you can also follow me on Facebook, Instagram. I'm on Twitter a little bit, Facebook, Instagram and YouTube at the investor show, as you can see behind us. The investor show is where you catch a lot of great stuff or you catch from him, Think Tech. But until the next video, podcast, cartoon, or whatever else you see me do crazy around the globe, I hope you took some away from that. Peace, be safe, I'm out and thank you.