Inflation up 8.3% in August
 

Inflation is still high - it was 8.5% in July and it was 8.3% in August.

I saw one article that said if you exclude food and gas, inflation was "only" 6.3%. However, I don't know why you would exclude two items that are necessary to survive. Maybe you could exclude entertainment or travel - which are more discretionary spending than food and gas.

that means another 3/4 to 1% raise in the fed..

Interest rates will continue to rise and at some point housing prices will be down sharply

UK Inflation Rate is at 10.10%, compared to 9.40% last month.
Not doing so well here in UK.
Only upside for wife and I is, we have a goodly sum in a tax free Government Cash Bond linked to inflation rate.
Doing nicely thank you very much!

Interest rates are too low. They need to be raised faster.

Lots of "kids" ran out and spent $10,000............fueling demand, increasing prices.

:evil6:

Some of them spent $20,000

For those who may have spare money to invest, check into iBonds. Max is $10k per individual. 9.2% interest annually for next six months. Gvt re evaluates interest every six months. A solid investment and
way to safely park $10k per person with very good return.

Google I bond for details. Only individuals can purchase thru US Treasury Direct Website.

High interest return is finally showing come back and nice to see.

I just wish we could accumulate some interest without the taxes.

Oil/gas goes up, everything else goes up. Oil/gas comes back down, everything else stays up. It’s a very dangerous game playing with the price of oil/gas.

Yes I understand when oil/gas is high, so go the prices to do business, but were do the extra profits go after the drop in oil/gas?

Wife and I were shopping yesterday...saw 18 eggs selling for $3.50something or other. My comment: "eggs are coming DOWN in price!!"

Are the hens holding out for better prices?

The market sure didn’t care much for that data.

Emotion.......costly, but emotion.

Yet 16 minutes ago There was tweet saying how well things are going. No mention of the market crashing

What to do, that is the question. Buy stocks on the sell off? Regret I shoulda, coulda mighta. Inflation, CPI, consumer price index is the evaporation of REAL net worth

Those million dollar homes for sale going to feel pain. So many asking 30 percent more than 2 years ago

I am glad it is not my decision to make. Our national debt is, close enough to claimed reality 33 TRILLION DOLLARS. To few realize that they do not comprehend one Trillion let alone 33 of them. I recall reading somewhere, rates were lower than today, the interest on the national debt was then one and a half BILLION A DAY. Back to my original point I see clearly that I do not REALLY comprehend 1.5 BILLION either.

Not an interest rate hike but a belief the Fed will raise interest rates because of the inflation they have caused. The stock market lost, I've not yet looked 3-4%. That is SAVINGS, retirement funds even a pension is funded in the stock market.

It is wealth, all savings is wealth, simply evaporating.

The hen union has struck for shorter working hours

We tend to live in a fiction. Imagine a tweet, a news story. Things are terrible. It will be worse tomorrow. It is a self fulfilling prophecy. We regularly read about the magic of compounding and investing growth. Math is math, spin is spin, LOSES also COMPOUND

In the words of that great English economist John Maynard Keynes prices are sticky downward.

My favorite quote of his is "aint no free lunch".

It depends on YOUR current position. I am neither looking to sell my home or to buy another. When we bought TEN YEARS AGO, I bought a place to LIVE IN.
I never expected it to go up as much as it did. That does not mean I would sell it cheap. Some focus on their own issues, goals. Perhaps, we all do. Hind sight is always 20-20. I SHOULDA COULDA MIGHTA.

Million dollar homes? A million just is not what it once was. I recall a TV show, The Millionaire. The plot was a philanthropist would anonymously give deserving people a million bucks and they were set for life.

There is an investment guide that says you can withdraw from savings 4% a year and never run out of money. All of these things are guides. If, wrong all you will get is OOPS. In any case 4% of a million is 40,000.

THE MATH
I just looked 9/13/22 market has closed. The S&P is down 4.32.

Assuming you had 10,000in an S&P index fund, a commonly used number for explanation.
10,000-4.32%=9568 9568+5%=10046. What you need to be whole

[QUOTE=DAVES;2136295]What to do, that is the question. Buy stocks on the sell off? /QUOTE]

Yep, drive into it.

Except that the market is still higher than 9/6, 7 day ago? so in reality, you only lost the prior 4 days of gain, so in reality just really close points in time of a bunch of ups and down in that example. so in reality, its all about how far down you are from the peak, where you should have been 0 % invested in equity

which is why you buy low and sell some or all when you have lots more than say 20% annual gain in any equity. . . that way you keep your gains, and money compounds very well at 20%

stock market candles guy

Graphic won't load. . as small as it can be made. .

I have a family member (not really sure what she does) that works somewhere within the the business of home loans. She tells me the country is back where it was in '08/'09. I said it does not show that around this part of the country. Her answer was... the loan circle that she is affiliated with on the norm processes 15,000 loans a month. In the month of August, they worked 900 loans. Not to mention.. the industry/business she deals with have laid off many and some went belly up. I do believe we will not see the true colors of this until after the November Elections. We all know that the bubble has to break. They can not keep giving loans to folks with a pulse for homes that are listed and selling for who the hell knows what. We have never seen the price of real estate go as high has it has in the past couple of years. The sales of today will probably never reach that level again so how will these buyers ever re-coupe? I like many of us can sell and make a nice buck but.... then we will buy less for more. something Got to Give. Anyway, I thought I would add my two cents.

I felt the same and asked the Canadian government's Financial Minister to give us a way to save money without it being taxed and it lead to Canadians getting TFSA accounts (Tax Free Savings Account). We can invest up to $6000 per year whichever way we prefer, i.e. cash, bonds, stocks etc... and the interest isn't taxed. When some money is taken out (tax free), that extra amount can be reinvested at a later date since the yearly maximum is accumulative, no matter how much you put in any given year. Along with our RRSP accounts which is a deferred tax account, we have great ways to manage our cash in Canada.

Real rates are at -6.7%, Volcker stopped raising rates when real rates reached +10%. This +1670 bps point away. 🤭🤭🤭

Would be great if we could time the market but the reality is you cannot do it in the long run. You seem to have timed it this time but over the long run doubt you can but good luck to you.

The real trick to you now is when do you get back in?

stu, can you see the P/E graph I uploaded on post #29? its not a big picture,

It will get much worse. Businesses making profits? Businesses aren’t making profits, and this is 1 of the reasons we have inflation. You have congress trying to force everybody to make $15-$20 an hour for a job a robot can do. You have congress forcing more taxes on businesses because congress is on a worthless spending spree. You have high costs for shipping (diesel is still $5 a gallon). Businesses will pass on all of these new costs and add to their price of their goods. You think Burger King and McDonald’s can still afford to all a $1 hamburger when they have to pay 2x the salaries than 18 months ago? Now, you will see businesses and corporations start laying people off. You will see gas rise again, rents going up, interest rates are over 6% now, soon to be close to 7% or higher.

I ain't from NY (thank God), but I can not see your chart.

Without wishing to make matters seem worse, you could think of an 8.3% level of inflation as the need to work one month out of the year for no income. Kinda puts things into perspective.

My Father always said "it's not a problem if you don't eat or drive".

And likewise the market is down greater than 10% from exactly one year ago. Now add to the loss 8-9% inflation rate and the hole is beginning to develop an echo.

Just so people understand, that does NOT mean that prices increased another 8.3% in August. It means the rate of inflation for the total year so far (!) DECREASED from 8.5% to 8.3%. For the total for EIGHT MONTHS to drop 0.2%, prices in August had to drop approximately that amount times eight, or 1.6%. The Federal Reserve Bank had hoped that raising interest rates last month would cause even more of a decline, but it hasn’t yet. Meanwhile, gas prices are back to where they were from 2011-2015, just before a gas glut lowered prices so much that lots of oil wells were closed and fracking decreased a lot. That was an unusual situation, and while it was good for us, it was not good for oil companies.

Not quite.

The CPI was expected to drop by 0.1%, but instead rose by 0.1%. Sounds like a minimal change, but enough to drop the Dow by 1300.

With oil declining from peak, there will be less inflation pressure on goods, however, labor inflation lags goods / rent inflation and now we are seeing the effects of labor inflation, and the only way to reduce labor inflation is to reduce job growth, which when due to a pandemic and those in their 60's retiring early, results in a labor shortage, means that the Fed may have to follow the Volker formula, and many are betting that won't happen. . .

Just remember that your house is NOT an investment. there is no revenue generated by it and there are only expenses associated with it. a car is also not an investment, just future junk. And in the villages, houses can come close to future junk with no wills/trusts, etc

What have interest rates been in Canada the past 10 years??

If you can only invest $6000, even at 5% interest (haven’t seen that high a rate in years), you would only get $300.

And is that just interest that is tax free or is it capital gains and dividends?