[DAVES]

Originally Posted by dewilson58

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

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

[Babubhat]

Originally Posted by DAVES

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

[DAVES]

Originally Posted by retiredguy123

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

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.

[Stu from NYC]

Originally Posted by ThirdOfFive

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 hen union has struck for shorter working hours

[DAVES]

Originally Posted by Babubhat

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

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

[Stu from NYC]

Originally Posted by Michael G.

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?

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".

[DAVES]

Originally Posted by Babubhat

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

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.

[DAVES]

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

[dewilson58]

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

Yep, drive into it.

[CoachKandSportsguy]

Originally Posted by DAVES

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

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

[CoachKandSportsguy]

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

[ronwinger]

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.

[La lamy]

Originally Posted by Michael G.

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

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

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.

[CoachKandSportsguy]

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

[Stu from NYC]

Originally Posted by CoachKandSportsguy

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

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?