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View Full Version : Fasten your Financial Seat belts ... Month #2


skarra
03-11-2025, 10:03 AM
Hopefully we all took steps a month ago when I first posted to protect our savings/investments/sources of income. 4% interest in the money market seems like a great return right now, and a good place to park money for maybe another 2-3 years as we head into a serious recession.

Wish I could forecast how this will all end, but it looks like tariffs, combined with disruptions caused by AI, and a malfunctioning federal government is the perfect storm. Be cautious everyone.

Stu from NYC
03-11-2025, 01:30 PM
Enjoy your vacation, pick someplace warm

Papa_lecki
03-11-2025, 01:47 PM
Actually, if the stock market goes down, investors pull money from equities and invest in bonds, pushing interest rates down.

Most Main Street equity investors are invested long term, in retirement accounts. They can withstand a dip in equity returns.

Lower interest rates more directly impact Main Street, they help the housing market, which helps construction, appliances, etc. Lower interest rate and a strong housing market strengths the economy more quickly.
Mortgage rates are below 7%

Mortgage rates drop as investors seek bond market safe haven (https://www.housingwire.com/articles/mortgage-rates-drop-as-investors-seek-bond-market-safe-haven/)

manaboutown
03-11-2025, 02:54 PM
Most of us did not fall off the turnip truck yesterday. Financials markets go both up and down. The Shiller CAPE index remains just over 35. Its median is 16.04 and its average 17.22. The stock markets remain very highly priced, over double both their median and their average. That said, who knows where they will be next year or even tomorrow.

skarra
03-11-2025, 03:08 PM
The Buffet Indicator also shows we're in need of some major correction.

Gold seems overvalued too. Bitcoin seems like a shell game.

Good old treasuries or Money Market for now. There will be buying opportunities along the way I'm sure. AI will be big, and that's where eventually my money will land.

Good luck everyone.

fdpaq0580
03-11-2025, 03:55 PM
.

Good luck everyone.

Thanks. We'll need it.

Aces4
03-11-2025, 04:31 PM
Actually, if the stock market goes down, investors pull money from equities and invest in bonds, pushing interest rates down.

Most Main Street equity investors are invested long term, in retirement accounts. They can withstand a dip in equity returns.

Lower interest rates more directly impact Main Street, they help the housing market, which helps construction, appliances, etc. Lower interest rate and a strong housing market strengths the economy more quickly.
Mortgage rates are below 7%

Mortgage rates drop as investors seek bond market safe haven (https://www.housingwire.com/articles/mortgage-rates-drop-as-investors-seek-bond-market-safe-haven/)

In that event, look out for a big inflation surge.

Caymus
03-11-2025, 06:56 PM
If Nasdaq trading is to be believed, no more data centers will ever be built.:D:D:D

dewilson58
03-12-2025, 05:22 AM
Enjoy your vacation, pick someplace warm

:BigApplause:

MrFlorida
03-12-2025, 08:54 AM
Investing in American companies might be a good idea.

gatorbill1
03-12-2025, 09:26 AM
My 4.5% callable CD for 2 years looks good now.

GreggC69
03-12-2025, 10:51 AM
What are your thoughts on Multi Year Guaranteed Annuities (MYGA's)? They function much like CD's but seem to have higher returns. With an A+ rated carrier, you can get 5.5% now with no brokerage fees or commissions. Has anyone used these as part of their portfolio?