dow jones

i was alive and old enough to remember the last time inflation went nuts. its a difficult beast to control and the cure is almost as bad as the cause.

jacking up them interest rates at a rapid rate creates other problems. Its like chemotherapy of the economy. It will help you if it does not kill you.
I wouldn't mind buying some 15% 30-year treasuries....
 

newfie

Well-Known Member
I'm watching the jobs report come out and reflecting on the insanity of the reporting.

the market is rooting for people to lose their jobs in order to be confident enough to invest in stocks.
 

Wally

BrownCafe Innovator & King of Puns
I'm watching the jobs report come out and reflecting on the insanity of the reporting.

the market is rooting for people to lose their jobs in order to be confident enough to invest in stocks.
And the media has to spin the reporting to favor Biden. NPR's spin is the numbers will help fight inflation.
 

Up In Smoke

Well-Known Member
I'm watching the jobs report come out and reflecting on the insanity of the reporting.

the market is rooting for people to lose their jobs in order to be confident enough to invest in stocks.
The market is trying to figure out the future cost of capital. If the Fed had stuck to it's guns in 2018 and rates had gone to 2.5/3% through 2019, we would have had dry powder to take on Covid. Seeing as though they didn't, their only recourse was helicopter cash for every man, woman and business. It's like buying a house, you feel great signing the papers, moving in and showing your family, but when that first payment comes, reality sets in. Plunging 6 trillion extra dollars into our economy felt good at the time, but the payments are going to eat us alive.
 

newfie

Well-Known Member
The market is trying to figure out the future cost of capital. If the Fed had stuck to it's guns in 2018 and rates had gone to 2.5/3% through 2019, we would have had dry powder to take on Covid. Seeing as though they didn't, their only recourse was helicopter cash for every man, woman and business. It's like buying a house, you feel great signing the papers, moving in and showing your family, but when that first payment comes, reality sets in. Plunging 6 trillion extra dollars into our economy felt good at the time, but the payments are going to eat us alive.
all thats wonderful . We added 250 K jobs which is a pretty generic result. the unemployment rate dropped to 3.5 only because there are less people looking for a job.
my comment was that the market is looking for and hoping for bad economic results that may trigger the fed into pausing or slowing the rate increases.
So in essence as i commented with this metric ( with a touch of sarcasm) that they were hoping people would lose their jobs as a good sign.
Most investors dont take it as deep as you just did.
for them here and now bad economic news is good news.
 

DELACROIX

In the Spirit of Honore' Daumier
The market is trying to figure out the future cost of capital. If the Fed had stuck to it's guns in 2018 and rates had gone to 2.5/3% through 2019, we would have had dry powder to take on Covid. Seeing as though they didn't, their only recourse was helicopter cash for every man, woman and business. It's like buying a house, you feel great signing the papers, moving in and showing your family, but when that first payment comes, reality sets in. Plunging 6 trillion extra dollars into our economy felt good at the time, but the payments are going to eat us alive.

In layman's terms: We are up 💩 creek without a paddle...
 

Up In Smoke

Well-Known Member
In layman's terms: We are up 💩 creek without a paddle...
In layman's terms the economy is more resilient than the Fed had hoped. They thought by raising rates and pulling money out of the economy, that inflation would quickly recede. Demand is high, companies are hiring and inflation persists. The market is a forward looking matrix and with no clear fiscal policy in place, they're shooting in the dark. Far more money is made in a down market.
 

Wally

BrownCafe Innovator & King of Puns
giphy.webp
 

floridays

Well-Known Member
The market is trying to figure out the future cost of capital. If the Fed had stuck to it's guns in 2018 and rates had gone to 2.5/3% through 2019, we would have had dry powder to take on Covid. Seeing as though they didn't, their only recourse was helicopter cash for every man, woman and business. It's like buying a house, you feel great signing the papers, moving in and showing your family, but when that first payment comes, reality sets in. Plunging 6 trillion extra dollars into our economy felt good at the time, but the payments are going to eat us alive.
No sweat for you ticker, you do best in down turns just imagine how well you will do in a total collapse.

The market ain't a true market based on real value, it was built on fiat, anyone with sense is working to find the best escape they can with the least exposure without dealing with future phone calls for payments on previous frolics they can't cover now or in the future. Micro econ.

I've followed your plan, you will do well after the collapse and burn.

Just my opinion of course.
 

floridays

Well-Known Member
I liked Dave Ramsey about 25 or so years ago, I like him a lot more today.

Who is debt free and not sweatin the market?

I asked a retired Navy aircraft mechanic friend of mine about 20yrs ago when he retired and was placed on inactive service what would happen if they called him back. He said don't worry, if they call me back it's over.

Debt free, if it destroys me it's over.
Not boasting, just fact. I'd hate to be someone with major debt sweatin the market today.

I hope everyone else is in the same position.
 

Up In Smoke

Well-Known Member
I liked Dave Ramsey about 25 or so years ago, I like him a lot more today.

Who is debt free and not sweatin the market?

I asked a retired Navy aircraft mechanic friend of mine about 20yrs ago when he retired and was placed on inactive service what would happen if they called him back. He said don't worry, if they call me back it's over.

Debt free, if it destroys me it's over.
Not boasting, just fact. I'd hate to be someone with major debt sweatin the market today.

I hope everyone else is in the same position.
I do use some of Ramsey's options strategies. To me it's all about protecting and strengthening my 2nd biggest asset. Thirty minutes of daily maintenance is a small time investment. The W2 and 401K investor was never intended to get rich investing. Markets are controlled by the rich and powerful.
 

Wally

BrownCafe Innovator & King of Puns
I do use some of Ramsey's options strategies. To me it's all about protecting and strengthening my 2nd biggest asset. Thirty minutes of daily maintenance is a small time investment. The W2 and 401K investor was never intended to get rich investing. Markets are controlled by the rich and powerful.
What fool near or in retirement has all their eggs in stocks? It's on you suckers if you do.
 

newfie

Well-Known Member
What fool near or in retirement has all their eggs in stocks? It's on you suckers if you do.
I agree its a rough time to be in the stock market with a lot of uncertainty and no clue when things may get better.

the only counter might be that some of the best traders were buying when others were selling. Figuring out the timing is the hard part.
 

Wally

BrownCafe Innovator & King of Puns
I agree its a rough time to be in the stock market with a lot of uncertainty and no clue when things may get better.

the only counter might be that some of the best traders were buying when others were selling. Figuring out the timing is the hard part.
So if you have a smaller portion at risk would you even bother to worry what the market is doing? Same with younger folk with decades ahead?
 

Up In Smoke

Well-Known Member
What fool near or in retirement has all their eggs in stocks? It's on you suckers if you do.
The Fed and Washington policies made the market the only place to put your money for the last 15 years or more. We were brainwashed to believe the markets are the best place to save for retirement.
 
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