Reading the Market: From Confusion to Clarity

0:01 Hey there, and welcome to Faith in Finance, where your values and your financial vision come together. I'm your host, Geil Thompson, Registered Rep for Joseph Eden Capital, a sister firm of Joseph Wealth Management. Every week, I'll be walking with you through the tools, truths, and strategies that help you build wealth with purpose, clarity, and peace. Because your money isn't just about what you have. It's about what you're building. Let's get started. baby This week, we're diving into something that intimidates a lot of new investors, and that's the stock market. But here's the truth. The stock market is not a mystery.

1:06 It's not a gamble. And it's not reserved for Wall Street insiders. It's simply a marketplace of ownership. And if you want to build wealth, you have to understand how it works. Let's start with what you're actually seeing when you look at the stock market. So whether it's on CNBC, Yahoo Finance, Money News, your phone, because you can use your phone too, you'll see a little ticker scrolling across the bottom of that screen. And sometimes it can feel like a jumble of letters and numbers and arrows all moving really fast. But once you understand what those pieces mean, it becomes a lot less intimidating. So here's the breakdown. First, you'll see something called.

1:53 A ticker symbol. I like to think of a ticker symbol like a nickname. It's a short version of a company's name that we use to identify it in the marketplace. For example, Apple's ticker symbol is AAPL. Starbucks is SBUX. Tesla, TSLA. These aren't random letters. They're how investors quickly identify companies in the marketplace. Next, you'll see the stock price. That's the current cost to buy one share of that company. So, if Apple's stock price is $200 and you want to own a slice of Apple, it'll cost you $200 to get in the game. It's just that simple. Now, right next to that price, you'll usually see a green or red arrow. Green means the stock is up compared to where it closed yesterday, meaning the price that it closed at at the end of the day. Red would mean it's down from the price that it closed at yesterday. It's a quick visual like a thumbs up or a thumbs down, letting you as the investor get a feel for how that company is doing on today. But here's the bigger picture.

3:11 You're not just watching numbers move. You're watching trust. You're watching confidence and you're watching fear move in the market. That's what I call capital in motion. So now that you understand individual stocks, let's talk about the market as a whole. You've probably heard someone say the market is up today or the market is down today. But what are they actually saying? Well, it's simple. What they're using is what we call a market index. to tell us how the market is performing. A market index is basically a summary. It tracks the performance of a group of companies so that we can get a sense of the overall mood. Let me introduce you to three big ones. Number one, the S &P 500. This tracks the 500 largest companies in the U .S. Think of it like a broad snapshot of the American economy.

4:14 If the S &P is doing well, it usually means the economy is doing well. The Dow Jones, or we shortly phrase it as the Dow. This one follows 30 big name companies across different industries. Companies like Microsoft, McDonald's, Coca -Cola and Nike. It's one of the oldest indexes and people watch it to track big business stability. The Nasdaq. This index is more technologically or tech heavy. It includes companies like Apple, Amazon, Google, and other innovative giants. If tech is booming, watch the NASDAQ. It'll usually show it first.

4:59 Here's why this matters. These indexes help you read the room. If the S &P, the Dow, and the NASDAQ are all rising, investors are feeling confident. There's optimism in the air. And if they're all falling, it usually means that something has spooked the market. Maybe it's economic news, interest rates, threat of a war, tariffs. We saw how those have affected the market or a major global event. You don't have to know everything, but if you can track these three indexes, you'll always know what kind of environment you're investing in. And remember, as builders of wealth, we don't just react to environments. We respond with wisdom, strategy and positioning. All right. So now you know what a stock is, how to spot its price, how to track the market as a whole. But what happens when you actually look at a company online, like on Yahoo Finance or Google Stocks? And you see one of those charts with a bunch of lines, numbers and dates. Don't worry, I've got you.

6:13 We're going to break it down. The chart is basically a picture of how the stock has performed over time. And once you know what to look for, it becomes one of your greatest tools as an investor. Here are three things to focus on. Number one, time frame. Usually one day, one year, five year views. We'll also talk about it. There's different other time frames you can use depending on the type of investor you'll become. You'll see options to view stocks movements over different periods. One day shows short term activity. Maybe the stock had a rough morning, could be having a bad day. Some news broke out. Anything could happen. But don't take that as the overall picture.

6:59 You can also look at a one year chart. which shows a bigger trend. It is generally growing or either shrinking, but it lets you know how the company has performed for that year. A five -year gives you the long game. How has this company performed through market ups and downs, good times and bad? Because let's just be clear, a lot can happen in five years. So what's our lesson from all of this? A drop today doesn't mean failure. So if you look at a stock symbol or you look at its chart and maybe you see red, it doesn't mean failure. Zoom out to see the full picture. Now, let's talk about something called trade volume, right? This tells you how many people are buying or selling that stock right now. Higher volumes mean a lot of activity. And that usually means something's going on. News, earnings, hype, or fear. Think of it like a busy line at a restaurant.

8:02 People are clearly paying attention to something because why else are they all in the line? Let's then look at a 52 -week high and low. This shows the highest and lowest prices that that stock has reached in that year, in the past year. It helps you understand whether the stock is pretty stable or is it bouncing around like a roller coaster. Why it matters? A stock that's always near its high might be overvalued. One that's near its low might be undervalued or it could be in trouble. Either way, it tells a story.

8:43 Let's take an example. Say you look up a ticker symbol, AAPL, or Apple. You'll see its chart, its price history, recent news, earnings reports, and more. Here's the key. Don't try to read everything. Look for patterns. Look for consistency. Is the line generally moving up over time or is it moving down? Do they bounce back after a dip or do they continue to just keep going down? Are there any major spikes or crashes that we should be concerned about? See, a bull market means prices are rising and there's economic optimism. A bear market means prices are falling and there's more fear or recession talk. Just like seasons, markets shift. Wealth builders don't panic. They prepare.

9:41 I'll say that again. Wealth builders don't panic when markets shift. They prepare. They read the signs and move accordingly because we've talked about it. We talked about positioning. Now, listen. I know this may seem like a lot for a new investor, but listen, this segment, I want you to listen to it, not just once, but listen to it about three times until it starts to make sense. But also do the practical steps. Look up those ticker symbols because too often people avoid investing because they're afraid of what they don't understand. But God didn't give us a spirit of fear. The market isn't just math. It's emotion in motion, driven by patterns and momentum. When you understand how capital moves, you stop reacting to noise and start responding with strategy. So I have a challenge for you. Let's make this real. I want you all to do something together with me.

10:47 We're going to pick a company and I want you to pick a company that you use. It could be products that you use on a regular basis. We talked about Apple. You might be literally watching me on an Apple device right now. It could be Nike because maybe you're wearing some Nike shoes right now. All of these are publicly traded companies. Now do this activity with me. Let's go ahead and let's look up a ticker symbol because I really want to show you how this works. First, go to finance .yahoo .com. Now, while you're there, I want you to type in the word Nike. Because what we want to do is look at Nike, right? We want to look at how it's performing, how it's charting, what are some things that we can take to understand how the company's performing. Now, do this for me. When you get there, you'll see a one day, which is usually symbolized with one D. Or five day, 5D, one month, 1M, or one year, 1Y. I want you to write down three things that you notice. Is the price trending up or is the price trending down when you look across those charts? What's the 52 -week high and low? That's usually located right underneath the chart. How many people are trading today? That's your volume.

12:07 Remember we talked about trade volume? You don't need to be an expert. You just need to start observing because the moment you start paying attention, you stop feeling intimidated. And that's when you start building confidence, the kind that can grow your wealth over time. Now, if you're ready to invest with insight, not intimidation, we'd love to help you. We want to help you build confidence. We want you to feel like the market is something that's no longer. out of reach, but it's something you can participate in. If you need some assistance, visit us, josephwealthmanagement .com or call 800 -807 -2881 to schedule your consultation. Listen, let us build wealth that reflects your faith and fuels your future. I look forward to seeing all of you new traders in the market. Now, welcome to our faith perspective.

13:13 Before we close, I want to offer a spiritual lens for everything we've just learned about reading the market. In First Chronicles 12 and 32, the scripture says that the sons of Issachar understood the times and knew what Israel should do. That one verse captures the heart of this episode. Reading the market isn't just about stocks and trends. It's about discernment. knowing how to interpret what's moving around you so you can respond with wisdom. Just like the sons of Issachar were equipped to understand seasons and shifts, God invites us to do the same in the marketplace, not to react out of fear, but to move with clarity. Markets will always rise and fall. News headlines change daily, but kingdom -minded investors don't build on noise. They build on insight. So if you've been intimidated by the market or unsure of how to step in, I want to remind you, you have the mind of Christ.

14:18 You have access to strategy. And just like the sons of Issachar, you can be trained to read the times and act with confidence. Your ability to interpret movement financially and spiritually is a gift. Let's use it well. The Faith and Finance podcast is intended for educational, informational, and entertainment purposes only. The views and opinions expressed by the hosts and guests are their own and do not necessarily reflect those of Joseph Wealth Management, Joseph Eden Capital, or any affiliated entities. Nothing shared on this podcast should be construed as personalized, financial, legal, tax, or investment advice.

15:26 All investing carries risk, including the potential loss of principal. Listeners are strongly encouraged to consult with a licensed financial advisor or fiduciary who understands their unique circumstances before making any financial decisions. Joseph Wealth Management and Joseph Eden Capital are registered entities and operate in accordance with applicable regulatory guidelines. Business is conducted only in jurisdictions where they are duly licensed or exempt from registration.