On stock prices go down companies start slashing employees to cut costs so they can try to bring their price back up.
Lots of people are living off at 401K distributions also
dow jones
- Thread starter Jkloc420
- Start date
Lots of people are living off at 401K distributions also
Jkloc420
Do you need an air compressor or tire gauge
Pensions go belly up
That too.
Thebrownblob
Well-Known Member
No man everybody just cashing their check at the liquor store and buying their cigarettes and whiskey, and a dimebag right around the corner, we don’t need to work or worry about money and the economy let the important people who know what they’re doing in the government take care of it. Woo hooo. If that don’t work will wait on that government check
Free money for everyone
Thebrownblob
Well-Known Member
I always find it humorous listening to leftists, they assume everyone is an idiot… but them. They have a superiority complex.
Remember the pandemic when people didn’t go to work? And only a small percentage of people actually own stocks? And home ownership has been somewhat shaky since 2008 for most Americans?
Fact is, people aren’t going to fear a crappy credit rating or foreclosure anymore. It’s a different world. In fact, nothing will bring fuel prices plummeting faster than a recession, so, we’ve got that going for us.
Ever talk to a right wing farmer? One is a close friend of mine. Know what we both like to laugh about? Him cashing the government check. And those things ain’t small!
Up In Smoke
Well-Known Member
President Powell in his statement yesterday echoed the opinion that the underlying economy is strong, the consumer continues to spend at near record levels and that employment continues to improve. Wage and energy increases will continue to way on employers until spending is reduced because of cost of credit. He went on to say that price to earnings multiples will continue to be compressed as companies consider their free cash flow and access to operating capital. In plain English, for the last 14 years it was better for their companies (stock price) to continually refinance debt, invest their free cash flow (buy back stock) and allow their P/E ratios to become bloated to unsustainable multiples. The raising of rates, the reduction of subsidies and the selling of government assets is forcing the market back down to a reasonable multiple. I believe I read 15 times forward earnings is a sustainable multiple. If that's true we are looking at 3200 on the S&P to find that support.
Thebrownblob
Well-Known Member
Interesting. Even if they don’t own stocks most people 25 and up have a 401(k) However small it is. And the pandemic was people staying home because the government made them afraid of something they did not need to be. That’s no longer the issue at some point they have to eat. We’re not arguing if there’s some people out there like you’re talking about but saying it’s 90% means you’re disconnected from reality. My daughter is 24 now she voted for Biden. She regrets every moment of it even though I don’t pretend she would’ve changed to Trump. Her exact words to me were people her age are scared to death because the government is destroying their future. All you have to do is look at Joe Biden‘s poll numbers. People care, a lot of people.
Thebrownblob
Well-Known Member
We can talk about right and left hypocrites all day. What’s your point? Both destroying the country. This makes you feel better? picking a side?Ever talk to a right wing farmer? One is a close friend of mine. Know what we both like to laugh about? Him cashing the government check. And those things ain’t small!
Maybe. Caring won’t fix anything. Throwing one group of bums out for another won’t either. Bernie Sanders may very well become extremely popular very soon. Truth be told, people should probably stop looking to Washington to place blame and look to Washington’s owners.
Thebrownblob
Well-Known Member
They always should’ve stopped looking to Washington
Bernie popular? He'd spend us into oblivion. People have recently gotten a good look at that and they aren't happy with the results.
Up In Smoke
Well-Known Member
You do realize the last administration spent more than any other in history? Government spending, unfunded tax cuts, massive subsides and tariffs. Part of what we're seeing now is the unwinding of those government giveaways.
Wally
BrownCafe Innovator & King of Puns
Stock market's fall has wiped out $3 trillion in retirement savings this year
With Americans' nest eggs mostly held in 401(k)s and IRAs, the swoon could force many to delay their retirement.
www.cbsnews.com
Up In Smoke
Well-Known Member
Something like 75% of the corporate tax cuts were spent buying back stocks and inflating P/E multiples. Even with today's selloff the Nasdaq is priced at over 25 times forward earnings. That's nuts.
Up In Smoke
Well-Known Member
That money wasn't lost, it ended up in the pockets of investors who invest in the entire market. IRAs and 401k accounts generally only allow you to buy and hold. If someone is willing to take their hard earned money and blindly throw it at the wall and never take the time to manage it, they deserve to get their ass kicked. You're going to insure your 300k house but not your 500k retirement? I have no sympathy for those idiots.Stock market's fall has wiped out $3 trillion in retirement savings this year
With Americans' nest eggs mostly held in 401(k)s and IRAs, the swoon could force many to delay their retirement.
Wally
BrownCafe Innovator & King of Puns
What fool had everything in stocks if close to retirement?
Up In Smoke
Well-Known Member
The problem we created was that there was no other place to put it. Treasuries, bonds and currencies were at near zero, if not negative. The propping up of our economy for a decade made the market the only place to make money. We were led to believe that the free money would never stop. The failure of the Fed to follow through in 2018 and massive spending in 2020/21 has brought us to this tipping point. I've said it before, this is going to hurt, but it's necessary to reset our economy and bring valuations back to earth.
