Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
#31
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#32
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Thanks
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#33
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#34
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#35
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I'm pretty sure, that you are absolutely correct.
I have to say though, I found it amusing reading Mr. Mastin's convoluted and amazingly incorrect analysis regarding investing. |
#36
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The latest jobs report shows almost 3M more are out of work just last week, so it's hard to imagine that the markets won't react to that.
I think we would be doing well, if even 75% of those jobs come back after a full reopening. My fingers are crossed. |
#37
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Was scratching the remaining hair on my head constantly while reading it.
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#38
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Call me old school, but I have always believed the value of any stock should be discounted future earnings. Future earnings are of course an estimate, but it is very reasonable to expect most companies future earnings to be much lower in light of the global economic upheaval caused by Covid 19. The rate used to discount future earnings should represent a risk free rate (US Treasury rate) appropriately adjusted for risk. Again, in light of the incredible amount of uncertainty currently existing, a much higher risk premium needs to be added to the discount rate. So lower expected earnings and much more uncertainty means stock prices SHOULD BE much lower. However, that’s not the case.
The current market represents values boosted by the Federal Reserve pumping absurd amounts of money into the system to artificially support the market above what the underlying fundamentals justify. This is not sustainable, very dangerous, and the cost of this will come back to haunt future generations. You know something is very wrong when the market does best when we get bad economic numbers, because that gives the market comfort that the Federal Reserve will keep acting irresponsibly. This is VERY SHORTSIGHTED! |
#39
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I'm in a similar situation but we sold and bought a home recently in the Villages. Things are crazy in the stock market and it may be overvalued. Thinking about selling everything and going into cash since the market has regained and because of market uncertainty .
I've put stop loss limits on some big gainers like Amazon and I'm selling aggressive covered calls in hopes of getting income on the looser stocks that I own. Also selling puts to create income instead of going to cash. Some sectors are doing fine but I will continue to be vigilant. |
#40
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#41
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Out of the Market
I have been out of the market for over 5 years now as the market is just too much of a roller coaster ride as I was nearing retirement age. I moved all my retirement funds into different real estate investments. I have a diversified portfolio among office buildings, apartment building, trailer parks, and I own a lot of mortgage notes. As a former landlord, I discovered that being the banker (lender) on a property is far better than being the landlord (owner) of a property. The mortgage note business has changed my life for the better and has allowed me to retire without financial worry.
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#42
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Contently standing on the sidelines and watching the DJIA this morning, only one word comes to mind.
Icarus. |
#43
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50/50 annuities and index funds. The annuity returned 14% between 2/19 and 2/20.
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#44
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If you are referring to a stock market based indexed annuity, a 14 percent return was about 6 percent less than the S&P 500 return for that period. But, you really can't calculate the return on an annuity for an arbitrary one year period. There are so many fees, surrender penalties, loopholes, etc. And, the guarantee that you will not lose money usually only applies to how much you invested vs how much you cash in years later and does not include the fees. Annuities are so deceptive that the companies that sell them will not even allow you to read the contract until you have already bought it. I have asked several insurance companies to send me a copy of their annuity contract, and they all refused to send it to me.
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#45
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The only thing the post actually explains is that one should not take investment advise from an accountant.
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Closed Thread |
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