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Motley Fool Money

How Fools Use ETFs

Sep 26, 2023
27:51
Snipd AI
Jim Gillies and Robert Brokamp discuss small-cap stocks, Costco's healthcare offering, and the forgotten aspect of Costco's valuation. Kirsten Guerra and Jason Moser talk about the benefits of using ETFs for diversification in investment portfolios and the difference between ETFs and mutual funds.
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Podcast summary created with Snipd AI

Quick takeaways

  • The current market downturn, including the decline in small-cap stocks, should be seen as an opportunity for long-term investors.
  • Costco's partnership with Sesame and expansion into the healthcare industry enhances its position as a low-cost provider and offers a more comprehensive range of services to customers.

Deep dives

Investing in a Volatile Market

With stock market performance being less than ideal, investors are feeling the pressure. Inflation rates have reached 8% in the United States, and the impact of interest rate adjustments has yet to be fully realized. Small cap stocks, such as those in the Russell 2000, have seen a decline of approximately 6%. While this may discourage short-term investors, the historically negative month of September is a reminder that market performance fluctuates. Additionally, the next few months often yield positive returns, making it a good period for the market overall. Long-term investors should view the current market as an opportunity rather than a setback.

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