WEBVTT 00:00:11.759 --> 00:00:13.669 What's up, sunshine? New day, new 00:00:13.679 --> 00:00:15.509 stories, new chances to get smarter. I'm 00:00:15.519 --> 00:00:17.670 Koi Wire. This is CNN 10 and today we 00:00:17.680 --> 00:00:19.189 are going from a planet breaking 00:00:19.199 --> 00:00:21.189 temperature records to corals sending 00:00:21.199 --> 00:00:22.870 scientists a warning from beneath the 00:00:22.880 --> 00:00:24.950 waves. And then we are making sense of 00:00:24.960 --> 00:00:27.269 the stock market. 10 minutes, big world. 00:00:27.279 --> 00:00:29.589 Let's rise up. We begin with our big 00:00:29.599 --> 00:00:31.750 world itself. Coming off an August 00:00:31.760 --> 00:00:34.229 unlike any scientists have ever recorded 00:00:34.239 --> 00:00:36.870 before. Studies show that August was the 00:00:36.880 --> 00:00:38.950 hottest August on record. The global 00:00:38.960 --> 00:00:41.990 average about 63 degrees Fahrenheit. May 00:00:42.000 --> 00:00:44.389 not sound hot, but remember that's 00:00:44.399 --> 00:00:46.549 averaging temperatures across the entire 00:00:46.559 --> 00:00:49.350 planet, day and night. Here's what 00:00:49.360 --> 00:00:51.910 really jumps out. August was hotter than 00:00:51.920 --> 00:00:54.229 July. And it's almost never hotter 00:00:54.239 --> 00:00:56.630 globally than July. It's happened only 00:00:56.640 --> 00:00:59.349 four other times since 1940. Scientists 00:00:59.359 --> 00:01:02.150 say two forces are combining. Long-term 00:01:02.160 --> 00:01:04.950 human-caused warming and a strengthening 00:01:04.960 --> 00:01:07.590 El Nino, a natural Pacific Ocean pattern 00:01:07.600 --> 00:01:10.070 that can temporarily turn up Earth's 00:01:10.080 --> 00:01:12.469 thermostat. Ocean temperatures also 00:01:12.479 --> 00:01:14.789 reached record territory in August. And 00:01:14.799 --> 00:01:17.190 sometimes warmer oceans mean that we see 00:01:17.200 --> 00:01:19.429 consequences beneath the surface. Off 00:01:19.439 --> 00:01:21.910 South Korea's Juju Island, divers and 00:01:21.920 --> 00:01:23.830 scientists are watching normally vibrant 00:01:23.840 --> 00:01:26.390 soft corals droop and collapse, a 00:01:26.400 --> 00:01:30.230 phenomenon researchers call slumping. 00:01:30.240 --> 00:01:32.630 As divers explore along a South Korean 00:01:32.640 --> 00:01:35.109 island, 00:01:35.119 --> 00:01:36.710 they're alarmed to what they see below 00:01:36.720 --> 00:01:38.390 the water. 00:01:38.400 --> 00:01:40.950 Slumping coral. 00:01:40.960 --> 00:01:43.350 A group of divers say many corals are 00:01:43.360 --> 00:01:45.910 collapsing as climate change pushes up 00:01:45.920 --> 00:01:47.749 water temperatures and contributes to 00:01:47.759 --> 00:01:51.109 intense weather events. 00:01:51.119 --> 00:01:53.109 >> Today, the outdoor air temperature is a 00:01:53.119 --> 00:01:55.190 bit high. And when I went underwater, 00:01:55.200 --> 00:01:57.510 even in the deep area, so many corals 00:01:57.520 --> 00:01:59.030 are lying collapsed 00:01:59.040 --> 00:02:01.270 >> off the coast of Jeju Island. The UNESCO 00:02:01.280 --> 00:02:03.910 listed habitat is made up of soft coral. 00:02:03.920 --> 00:02:06.149 Unlike hard corals, which have stony 00:02:06.159 --> 00:02:08.949 skeletons and form reefs, soft corals 00:02:08.959 --> 00:02:11.430 are bendable and flow with the currents. 00:02:11.440 --> 00:02:13.030 They stay upright through fluid 00:02:13.040 --> 00:02:14.630 pressure. But if the environment 00:02:14.640 --> 00:02:17.510 changes, they can sag or collapse. This 00:02:17.520 --> 00:02:20.229 puts clusters of coral at risk of dying. 00:02:20.239 --> 00:02:21.750 A record heat wave hit the Korean 00:02:21.760 --> 00:02:23.670 Peninsula this summer. While the South 00:02:23.680 --> 00:02:25.830 suffered heavy rains, researchers say 00:02:25.840 --> 00:02:27.910 weather conditions such as these are 00:02:27.920 --> 00:02:29.910 potential triggers for soft coral 00:02:29.920 --> 00:02:32.150 slumping. The researchers say the dying 00:02:32.160 --> 00:02:35.830 coral has widespread effects. 00:02:35.840 --> 00:02:37.589 >> If this foundational ecosystem 00:02:37.599 --> 00:02:39.990 collapses, there is a very high 00:02:40.000 --> 00:02:42.070 possibility that the entire marine 00:02:42.080 --> 00:02:44.869 ecosystem could collapse as well. The 00:02:44.879 --> 00:02:47.110 warmer waters have also caused fisher 00:02:47.120 --> 00:02:49.350 catch to decline. A local fisher says 00:02:49.360 --> 00:02:51.509 the water has become too hot for species 00:02:51.519 --> 00:02:54.150 to spawn, and her typical 5-hour workday 00:02:54.160 --> 00:02:56.630 has dwindled to just 3 hours, partially 00:02:56.640 --> 00:03:00.710 because there's less to catch. 00:03:00.720 --> 00:03:05.190 That place, the coral habitat in Ju 00:03:05.200 --> 00:03:07.190 is so beautiful and has been a source of 00:03:07.200 --> 00:03:09.509 comfort in my life. Watching it collapse 00:03:09.519 --> 00:03:12.070 like that turning white, I was so 00:03:12.080 --> 00:03:14.869 bewildered and felt afraid, wondering, 00:03:14.879 --> 00:03:19.110 is the sea now completely collapsing? 00:03:19.120 --> 00:03:21.270 >> 10sec trivia. Which two animals 00:03:21.280 --> 00:03:23.190 represent a rising or falling stock 00:03:23.200 --> 00:03:25.750 market? Cat and mouse, bull and bear, 00:03:25.760 --> 00:03:28.470 dog and pony, or moose and squirrel? 00:03:28.480 --> 00:03:32.949 Answer 00:03:32.959 --> 00:03:35.430 is bull and bear. A bull market occurs 00:03:35.440 --> 00:03:38.550 when stocks rise by at least 20% over a 00:03:38.560 --> 00:03:40.630 certain period. A bare market is when 00:03:40.640 --> 00:03:43.190 stocks fall by at least 20% over that 00:03:43.200 --> 00:03:45.430 same time frame. Memory trick. Bulls 00:03:45.440 --> 00:03:53.589 thrust horns up, bears swipe claws down. 00:03:53.599 --> 00:03:55.270 The stock market, we've all heard about 00:03:55.280 --> 00:03:57.030 it. Maybe you're even invested in it. 00:03:57.040 --> 00:03:58.789 Because sometimes investing can feel 00:03:58.799 --> 00:04:00.949 less like a way for us to build wealth 00:04:00.959 --> 00:04:02.949 and more like a game where Wall Street 00:04:02.959 --> 00:04:05.270 already knows all of the cheat codes. We 00:04:05.280 --> 00:04:07.350 are here with our friend David Goldman 00:04:07.360 --> 00:04:09.350 to help us make sense of the stock 00:04:09.360 --> 00:04:11.350 market. Great to see you, David. If 00:04:11.360 --> 00:04:13.830 folks are anything like I am and don't 00:04:13.840 --> 00:04:14.949 know the difference between a bull 00:04:14.959 --> 00:04:16.949 market and a bull dog, how are we 00:04:16.959 --> 00:04:18.229 supposed to make money investing? 00:04:18.239 --> 00:04:19.830 >> Yeah, it can be overwhelming. I mean, 00:04:19.840 --> 00:04:21.670 you got these people on Wall Street. 00:04:21.680 --> 00:04:23.990 They're day traders. They got Bloomberg 00:04:24.000 --> 00:04:25.749 terminals. You know, they're hedge fund 00:04:25.759 --> 00:04:28.310 managers. with seven monitors that help 00:04:28.320 --> 00:04:30.390 them watch the market. How could I 00:04:30.400 --> 00:04:33.510 possibly win? Well, the best way to make 00:04:33.520 --> 00:04:35.749 money in the market, it's not to buy a 00:04:35.759 --> 00:04:37.990 few or even a bunch of stocks and sell 00:04:38.000 --> 00:04:40.950 them for a profit. The best way is to 00:04:40.960 --> 00:04:44.070 buy just about every stock that there is 00:04:44.080 --> 00:04:45.749 and hold on to it until you're ready to 00:04:45.759 --> 00:04:47.749 retire. Okay, that sounds great in 00:04:47.759 --> 00:04:49.909 theory. I get it. But also sounds like a 00:04:49.919 --> 00:04:51.350 lot of money. Most of us can't just 00:04:51.360 --> 00:04:53.430 stroll into Wall Street and buy 00:04:53.440 --> 00:04:55.030 everything. So, how do we know which 00:04:55.040 --> 00:04:56.629 stocks are the right stocks? 00:04:56.639 --> 00:04:58.469 >> Yeah, it's a great point. So, let's talk 00:04:58.479 --> 00:05:01.030 about something called the S&P 500. It's 00:05:01.040 --> 00:05:03.590 one of the best ways to invest in the 00:05:03.600 --> 00:05:05.830 stock market because you can buy tiny 00:05:05.840 --> 00:05:08.950 pieces of every company. So, you see, 00:05:08.960 --> 00:05:12.070 the S&P 500 is a stock market index. 00:05:12.080 --> 00:05:15.430 It's a list of stocks that includes 500 00:05:15.440 --> 00:05:17.189 of the biggest and most successful 00:05:17.199 --> 00:05:18.790 companies in the United States. Think of 00:05:18.800 --> 00:05:21.270 it like a report card on the American 00:05:21.280 --> 00:05:24.710 economy. Over time, buying the S&P 500 00:05:24.720 --> 00:05:27.350 and holding on to it actually has the 00:05:27.360 --> 00:05:30.150 potential to beat those quote unquote 00:05:30.160 --> 00:05:32.790 smart people who buy and sell stocks for 00:05:32.800 --> 00:05:34.230 >> Okay. All right. Well, show me the 00:05:34.240 --> 00:05:36.469 receipt. So, over the past 10 years, say 00:05:36.479 --> 00:05:39.110 if we put our money into the S&P 500 and 00:05:39.120 --> 00:05:41.430 let it ride, what might that investment 00:05:41.440 --> 00:05:42.310 have looked like? 00:05:42.320 --> 00:05:44.150 >> Yeah, it's a great question. So, in the 00:05:44.160 --> 00:05:46.790 last decade, you would have gotten a 00:05:46.800 --> 00:05:48.310 14.4% 00:05:48.320 --> 00:05:49.909 average annual return on your 00:05:49.919 --> 00:05:52.310 investment. But hedge funds, well, they 00:05:52.320 --> 00:05:55.110 only saw a 5% annual return. So that 00:05:55.120 --> 00:05:59.350 means if you had put $100 in the S&P 500 00:05:59.360 --> 00:06:03.909 in 2010, you'd have $364.68 00:06:03.919 --> 00:06:08.469 in 2020. That's an additional $264.68. 00:06:08.479 --> 00:06:10.950 Now, if you put it in an average hedge 00:06:10.960 --> 00:06:13.189 fund, your $100 investment, well, that 00:06:13.199 --> 00:06:17.270 would only be worth about $159.98. 00:06:17.280 --> 00:06:20.070 >> Wow. Big difference. Okay, so S&P 500 00:06:20.080 --> 00:06:21.909 historically has performed well over 00:06:21.919 --> 00:06:23.909 time, but help us understand the stock 00:06:23.919 --> 00:06:25.990 market as a whole. Make it make sense. 00:06:26.000 --> 00:06:28.070 Yeah, think of the stock market like a 00:06:28.080 --> 00:06:29.990 bunch of companies selling little pieces 00:06:30.000 --> 00:06:32.870 of their businesses to the public. So, 00:06:32.880 --> 00:06:34.950 for example, you know, you got a tech 00:06:34.960 --> 00:06:37.110 company, you got an umbrella company, a 00:06:37.120 --> 00:06:39.830 shoe company. All of these companies 00:06:39.840 --> 00:06:41.990 make products that they sell to their 00:06:42.000 --> 00:06:44.550 customers. Here's a good example. So, 00:06:44.560 --> 00:06:47.590 let's just say jogging has become super 00:06:47.600 --> 00:06:49.909 popular. Everyone wants to run. So, 00:06:49.919 --> 00:06:51.909 everyone goes out and buys running 00:06:51.919 --> 00:06:54.710 shoes. So, that shoe company stock, 00:06:54.720 --> 00:06:56.390 well, that's going to go up because 00:06:56.400 --> 00:06:58.629 they're making more money by selling 00:06:58.639 --> 00:07:01.909 more shoes. Okay, but Goldman, you don't 00:07:01.919 --> 00:07:03.510 have a crystal ball, right? None of us 00:07:03.520 --> 00:07:04.870 knows which companies are going to 00:07:04.880 --> 00:07:07.270 explode, which ones might implode, or 00:07:07.280 --> 00:07:08.790 what surprise might be lurking around 00:07:08.800 --> 00:07:10.950 the corner. Talking about war, extreme 00:07:10.960 --> 00:07:13.029 weather, pandemics, political turmoil. 00:07:13.039 --> 00:07:15.430 Shoot, one viral Tik Tok and suddenly 00:07:15.440 --> 00:07:16.870 people are rushing out to buy these 00:07:16.880 --> 00:07:18.309 overpriced drinking mugs. 00:07:18.319 --> 00:07:20.790 >> Yeah, you're right. That's a good point. 00:07:20.800 --> 00:07:23.670 And that's why we diversify. So instead 00:07:23.680 --> 00:07:26.070 of buying stock in the shoe company, we 00:07:26.080 --> 00:07:28.469 buy stocks from a huge variety of 00:07:28.479 --> 00:07:30.070 companies. That's going to help take 00:07:30.080 --> 00:07:32.309 some of the risk out of our investment 00:07:32.319 --> 00:07:34.629 without reducing the potential return. 00:07:34.639 --> 00:07:36.550 >> All right, Goldman, prove it. Give us an 00:07:36.560 --> 00:07:38.309 example of how spreading your money 00:07:38.319 --> 00:07:40.629 around can protect you. Okay, let's 00:07:40.639 --> 00:07:43.270 imagine we're in a town with just two 00:07:43.280 --> 00:07:44.790 businesses. There's a business that 00:07:44.800 --> 00:07:47.350 sells umbrellas and the other one sells 00:07:47.360 --> 00:07:51.430 sunscreen. So, weather can help or hurt 00:07:51.440 --> 00:07:53.670 both. When it's sunny, the sunscreen 00:07:53.680 --> 00:07:56.230 business is booming and umbrella sales 00:07:56.240 --> 00:07:58.710 plunge. But when it's raining, people 00:07:58.720 --> 00:08:01.270 line up to buy umbrellas and they're 00:08:01.280 --> 00:08:03.510 probably not buying a lot of sunscreen. 00:08:03.520 --> 00:08:05.510 If it's sunny half the time though and 00:08:05.520 --> 00:08:07.510 it's raining half the time, well, that 00:08:07.520 --> 00:08:09.029 would give an investor in either company 00:08:09.039 --> 00:08:10.469 a pretty decent return. 00:08:10.479 --> 00:08:11.909 >> I'm just glad you have the sun over your 00:08:11.919 --> 00:08:13.909 head today because I do not have 00:08:13.919 --> 00:08:15.990 sunscreen or a hat and my mom would kill 00:08:16.000 --> 00:08:17.830 me. All right, so you're saying, David, 00:08:17.840 --> 00:08:20.150 if it's unusually rainy one year or if 00:08:20.160 --> 00:08:22.550 there's a drought in another, you could 00:08:22.560 --> 00:08:24.550 bet everything on one business, you 00:08:24.560 --> 00:08:26.390 could hit a home run, but you could also 00:08:26.400 --> 00:08:26.950 strike out. 00:08:26.960 --> 00:08:29.510 >> Yeah, that's true. But the if the same 00:08:29.520 --> 00:08:31.830 investor bought an equal share of both 00:08:31.840 --> 00:08:33.670 companies, then no matter what the 00:08:33.680 --> 00:08:35.670 weather, they'd get the same expected 00:08:35.680 --> 00:08:37.909 return. So buying an index fund that 00:08:37.919 --> 00:08:40.790 gives you shares of the entire stock 00:08:40.800 --> 00:08:42.949 market, that follows the same principle 00:08:42.959 --> 00:08:45.910 across all industries and businesses. 00:08:45.920 --> 00:08:48.389 But it's not foolproof. Investing in 00:08:48.399 --> 00:08:50.710 stocks is always inherently risky. In 00:08:50.720 --> 00:08:53.670 2022, the market lost a fifth of its 00:08:53.680 --> 00:08:55.990 value. But had you been invested in the 00:08:56.000 --> 00:08:59.030 S&P 500 over the past 10 years, your 00:08:59.040 --> 00:09:07.350 return would have been 300%. 00:09:07.360 --> 00:09:09.350 Today's story getting a 10 out of 10. A 00:09:09.360 --> 00:09:11.430 world where a trip to the dentist is not 00:09:11.440 --> 00:09:13.670 so scary. At this Colorado dental 00:09:13.680 --> 00:09:15.430 office, patients have something to look 00:09:15.440 --> 00:09:17.590 forward to during their checkups. A 00:09:17.600 --> 00:09:19.990 therapy dog named Annie. When someone 00:09:20.000 --> 00:09:21.990 needs a little comfort, Annie hops up on 00:09:22.000 --> 00:09:23.910 top of them, wrapping them in what feels 00:09:23.920 --> 00:09:26.389 like a fuzzy four-legged blanket. This 00:09:26.399 --> 00:09:28.710 calming K9 has basically become a star 00:09:28.720 --> 00:09:30.790 with millions of views on social media 00:09:30.800 --> 00:09:33.509 and now her very own children's book. 00:09:33.519 --> 00:09:35.350 Patients say Annie has helped them calm 00:09:35.360 --> 00:09:37.829 their nerves so much that some now look 00:09:37.839 --> 00:09:39.750 forward to trips to the dentist. Proof 00:09:39.760 --> 00:09:41.910 that sometimes maybe the scariest places 00:09:41.920 --> 00:09:43.990 just need a furry friend. All right, 00:09:44.000 --> 00:09:46.150 before we go, I have a shout out going 00:09:46.160 --> 00:09:49.110 to Miss Jones and friends at Mir's 00:09:49.120 --> 00:09:51.590 Middle School in Anchorage, Alaska. Rise 00:09:51.600 --> 00:09:53.509 up. Thank you for the kind words about 00:09:53.519 --> 00:09:56.550 our 911 special. We are here for you. 00:09:56.560 --> 00:09:59.670 And some welldeserved love. Mrs. Barber 00:09:59.680 --> 00:10:01.750 at St. Cecilia Catholic School in 00:10:01.760 --> 00:10:04.150 Clearwater, Florida. 35 years of 00:10:04.160 --> 00:10:05.910 teaching. Mrs. Barber, that's 00:10:05.920 --> 00:10:08.070 generations of students whose lives are 00:10:08.080 --> 00:10:10.230 different because of you showing up for 00:10:10.240 --> 00:10:11.990 them. Thank you for all you do and for 00:10:12.000 --> 00:10:13.590 making us a part of your classroom. 00:10:13.600 --> 00:10:16.069 Shine on sunshine. That's our 10. Go 00:10:16.079 --> 00:10:18.310 learn something. Go teach somebody. Go 00:10:18.320 --> 00:10:19.750 make somebody's day better. The world 00:10:19.760 --> 00:10:22.310 needs the best version of you today. I'm 00:10:22.320 --> 00:10:27.079 Cy Wire and we are CNN 10.