Fasten your Financial Seat belts ... Month #2

[skarra]

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]

Enjoy your vacation, pick someplace warm

[Papa_lecki]

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]

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]

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]

.

Good luck everyone.

Thanks. We'll need it.

[Aces4]

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]

If Nasdaq trading is to be believed, no more data centers will ever be built.:D:D:D

[dewilson58]

Enjoy your vacation, pick someplace warm

:BigApplause:

[MrFlorida]

Investing in American companies might be a good idea.

[gatorbill1]

My 4.5% callable CD for 2 years looks good now.

[GreggC69]

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?