Investing Thread

[SoCalEagle]

Sultan

Thank you for the inflation education. I fully understand the process.

Do you believe the China economic numbers?

SoCal
Deflation or stagflation is something we do not want. As for political reasons, when it comes to economics, I always pull for positives, regardless of the party.

Me, too!!!!  Glad we're on the same page. 

[ZiggysFryBoy]

They have tried pegging, and decided it was not for them.

This both accurately answers your question, and is a joke. I appreciate you teeing that one up for me.

Pakuni enjoys a good pegging.

[Lennys Tap]

The current administration has been trying to put pressure on china to get their crap together, we'll see...

Much funnier than your pegging joke. Well done!

[tower912]

Farmer's Insurance pulls out of Florida.    Too many hurricanes.    Honestly, with the temperature of the Atlantic and Caribbean right now, I get that.     How does this factor in to Heisie's city predictions?

[Pakuni]

Pakuni enjoys a good pegging.

Ziggy telling on himself again.

[ZiggysFryBoy]

Ziggy telling on himself again.

Wrong.  My bunghole is inviolable.

Notice you didn't deny it either.  That's cool.  Be proud of your kinks.

[Skatastrophy]

Wrong.  My bunghole is inviolable.

Notice you didn't deny it either.  That's cool.  Be proud of your kinks.

You have a stoma or something?

[Pakuni]

Wrong.  My bunghole is inviolable.

I know it's embarrassing, but if you go to the ER, they can get that little critter out.

[The Hippie Satan of Hyperbole]

Inflation decreased to 3.0% in June. Wonder how that differs from Goose's figure?

[MU82]

Market's reacting nicely pre-bell.

[Coleman]

Soft landing baby 

[MuggsyB]

Soft landing baby 

Does this mean there won't be another rate hike?

[Coleman]

Does this mean there won't be another rate hike?

I am not on the Fed Open Market Committee. But my 2 cents...

I would say it decreases the chances of a rate hike. I could see more rate hikes this year though. The Fed's stated goal is 2% inflation and we are not there yet. But 3% is a REALLY good number considering we were over 9% one year ago.

[MuggsyB]

I am not on the Fed Open Market Committee. But my 2 cents...

I would say it decreases the chances of a rate hike. I could see more rate hikes this year though. The Fed's stated goal is 2% inflation and we are not there yet. But 3% is a REALLY good number considering we were over 9% one year ago.

On paper that's certainly true but I'm not sure the price of goods and services have correlated with inflation numbers.  Of course I do live in a ridiculously expensive area. 

[MU82]

Does this mean there won't be another rate hike?

After looking like a July hike was a sure thing, this puts a pause back in the discussion, along with language suggesting that they still could do a hike or two if necessary later this year.

If forced to bet, however, I'd say they'll still nudge it up .25 in July. There were enough hawkish comments from the June meeting to make me think there's still appetite for at least one more raise. But I'm not forced to bet, so we'll just have to see.

Either way, it doesn't change how I'll invest one iota.

[MuggsyB]

People really have terrible investing instincts I must say.  Thank God for my grandparents. 

[Coleman]

After looking like a July hike was a sure thing, this puts a pause back in the discussion, along with language suggesting that they still could do a hike or two if necessary later this year.

If forced to bet, however, I'd say they'll still nudge it up .25 in July. There were enough hawkish comments from the June meeting to make me think there's still appetite for at least one more raise. But I'm not forced to bet, so we'll just have to see.

Either way, it doesn't change how I'll invest one iota.

Agree with everything here. I could see another .25 rate hike and then a pause, or vice versa, but probably still a rate hike at some point this year.

[TSmith34, Inc.]

Does this mean there won't be another rate hike?

The Fed has certainly signaled they will likely continue to raise rates. As I've opined before, I think they are risk of overshooting if they do so. Fed Rate hikes don't instantaneously work their way into the economy, IMO there is still a lot of impact to be felt from previous hikes that haven't yet fully been baked in.

[jesmu84]

Inflation decreased to 3.0% in June. Wonder how that differs from Goose's figure?

I wonder if this means corporations will be lowering their costs as the recent price increases were attributed to high inflation.

[ZiggysFryBoy]

I wonder if this means corporations will be lowering their costs as the recent price increases were attributed to high inflation.

Oh you sweet summer child.

[Golden Avalanche]

America has fallen so much under this guy we can't even do a recession correctly. FML.

[Goose]

Sultan

Ouch.

[SoCalEagle]

I wonder if this means corporations will be lowering their costs as the recent price increases were attributed to high inflation.

I know you're joking, but your statement has more than just a little bit of truth in it.  What the last few reports have shown is that inflation is falling fast in some categories of "goods."  So fast, in fact, that economists are beginning to worry about deflation (See prior post about price decreases v. slowing of price increases).  If this happens, then we could be in for a long and protracted recession.  It's a vicious cycle - producers can't raise prices, therefore, employers can't increase employee wages, workers can't spend more because they aren't getting raises.  Rinse / repeat.  Let's hope the fed has seen enough of the price drops for now and decides to pause until the picture becomes a little more clear. 

[MU82]

In the first major earnings reports of the season, Pepsi (yesterday) and JPM and UNH (this morning) each revealed outstanding performances and gave solid guidance. Each saw stock prices rise nicely, lifting the entire market.

[Hards Alumni]

In the first major earnings reports of the season, Pepsi (yesterday) and JPM and UNH (this morning) each revealed outstanding performances and gave solid guidance. Each saw stock prices rise nicely, lifting the entire market.

Turns out that if you just price gouge you make more money!