[JMintzer]

Originally Posted by GoRedSox!

It's the commodity price per gallon on the futures market, not the price at the pumps. The gasoline still has to get transported, there is usually a distributor who has their profit built in, the gas station has to make their profit per gallon, and there are federal and state taxes that get added to the cost to make the price at the pump. However, when the underlying cost of gasoline decreases by 50 cents a gallon, a good portion of that will work it's way to the pumps.

As I said elsewhere, who knows where the oil markets go tomorrow, however....

As of 9/18/2020, the average price in the US was $3.88...

Nowhere near $2.19

Gas prices hit 2023 highs as oil stays hot | CNN Business

[Bogie Shooter]

Originally Posted by MX rider

Not sure where you're getting your numbers. Gas here in southern Indiana hasn't been anywhere near that since Trump was in.
The cheapest around here is 3.29 and it hasn't been below $3 for a long time.

I'm not a big Trump guy, but I do know when he was in, gas was cheap and the economy was on fire.

So was the national debt….

[Pballer]

Originally Posted by MX rider

Not sure where you're getting your numbers. Gas here in southern Indiana hasn't been anywhere near that since Trump was in.
The cheapest around here is 3.29 and it hasn't been below $3 for a long time.

I'm not a big Trump guy, but I do know when he was in, gas was cheap and the economy was on fire.

During the 3 years before COVID, GDP growth averaged 2.5% - this is "on fire"?

[JMintzer]

Originally Posted by Pballer

During the 3 years before COVID, GDP growth averaged 2.5% - this is "on fire"?

As of December 2019, it was 3.18%, the highest it had been since 2004...

Oh, I forgot to add... The average GDP for years ending 2017, 2018, 2019 (the 3 years before Covid) was 2.97%, not 2.5%

US Real GDP Growth Rate by Year

[Normal]

Originally Posted by JMintzer

As of December 2019, it was 3.18%, the highest it had been since 2004...

Oh, I forgot to add... The average GDP for years ending 2017, 2018, 2019 (the 3 years before Covid) was 2.97%, not 2.5%

US Real GDP Growth Rate by Year

Revenue has also climbed. We were steady till about 2018 at about 4trillion. This year’s revenue should top a little over 5 trillion dollars. To bad the government still spends like drunken sailors.

[Pballer]

Originally Posted by JMintzer

As of December 2019, it was 3.18%, the highest it had been since 2004...

Oh, I forgot to add... The average GDP for years ending 2017, 2018, 2019 (the 3 years before Covid) was 2.97%, not 2.5%

US Real GDP Growth Rate by Year

Don't know how you get a 2.97 average from 2.99, 2.12 and 3.18. It comes out to a 2.76 average whether arithmetic or geometric. Still not "on fire" compared to Reagan and Clinton years.

[KenLee100]

When I purchased my first home in 1983, I was told by a savvy real estate investor, "Property is usually too expensive on the day you buy, and in 10 years, you'll wish you had purchased a dozen of them." I doubled my money in 5 years. There will always be those who are priced out of the market. That does not make the market bad or evil. You should buy what you can afford.

[MX rider]

Originally Posted by Pballer

Don't know how you get a 2.97 average from 2.99, 2.12 and 3.18. It comes out to a 2.76 average whether arithmetic or geometric. Still not "on fire" compared to Reagan and Clinton years.

Yes, the economy was on fire due to low energy costs and more well paying jobs than there were people to fill them. A big Toyota plant near me was begging for workers and so were the trade unions. All great paying jobs.

I work selling food for Sysco to restaurants (retiring in 4 weeks), My business was rocking during those years.

Yes Reagan and Clinton had great economies, but I've never seen a time like 17,18 and 19. So many high paying jobs and employers competing for workers. It was even happening in my industry.

[Craig Vernon]

Many great points to this post. I have enjoyed reading all of them. There is nothing wrong with the housing market pricing according to rates and making TV what it was just a few years ago a quiet and happening place to live with likeminded retirees enjoying the fruits of their labor. I am pleased to see so many different opinions about so many related issues. Feel blessed in your life in TV and I look forward to living full time myself within a couple years. Until then I will continue to enjoy my visits. Keep up the posts I will read them all. Have a Wonderful Day!

[Rainger99]

Gasoline RBOB Futures Historical Prices - Investing.com

[dewilson58]

Originally Posted by Craig Vernon

Many great points to this post.

Few different bunny trails.

You never know what is going to generate 100 posts.

[Bogie Shooter]

Originally Posted by dewilson58

Few different bunny trails.

You never know what is going to generate 100 posts.

Round-a-about threads come close.

[CoachKandSportsguy]

Originally Posted by Randall55

Once you accumulate the wealth, you use the money to make more money. You shouldn't pay off debts that are lower than what you can earn. Keeping a 2.5% mortgage while earning 5+ percent in investments makes sense to me.

That is all based upon the assumption that there is no abnormal event your assumed risk profile of your investments can't withstand. Investments are an inherently risky holding, and assuming that the current rates and levels will continue through the life of the decision is the uncertainty that many people do not want to take.

I want the house free and clear, and not have to assume that all my investments can withstand any unforeseen event. I have lost everything once, that is not happening again, and I am not the only one who can get surprised by unforeseen events.

remember, as with all things in life, everything works fine, until it doesn't.

[GoRedSox!]

Originally Posted by JMintzer

As of 9/18/2020, the average price in the US was $3.88...

Nowhere near $2.19

Gas prices hit 2023 highs as oil stays hot | CNN Business

As I have been patiently trying to explain, the price I am quoting is the price on the commodities market for gasoline futures. As I said repeatedly, it takes time for the price of gas futures to make its way down to the price at the pumps. The bottom line is the underlying cost of gasoline went down 51 cents a gallon in 3 weeks. The price I quoted was the accurate price of RBOB futures on that date, you can easily look it up and verify that.

By the way, futures are up .06 already tonight to $2.25 per gallon due to the events in Israel....The price of oil is up by over $2 a barrel....there are two main types of oil that trades in futures contracts...Brent North Sea Crude, and West Texas Intermediate.....Brent always trades a little higher than the Texas oil....

[Randall55]

Originally Posted by CoachKandSportsguy

That is all based upon the assumption that there is no abnormal event your assumed risk profile of your investments can't withstand. Investments are an inherently risky holding, and assuming that the current rates and levels will continue through the life of the decision is the uncertainty that many people do not want to take.

I want the house free and clear, and not have to assume that all my investments can withstand any unforeseen event. I have lost everything once, that is not happening again, and I am not the only one who can get surprised by unforeseen events.

remember, as with all things in life, everything works fine, until it doesn't.

We are at the age where you invest in low risk investments.