Investing Thread

[ZiggysFryBoy]

Source?

Check youtube.

[Goose]

Jesmu

I think saying 50% is teetering might be very wishful thinking. This economy has been smoke and mirrors the past few years, possibly longer, and not sustainable, IMO.

Good news, our government has proven not to have the stomach for having economic hardship and likely will continue to save the day.

I have said it many times, I really do not know how many people have lived the lifestyle they have in recent years. My hope for them is that Mom and Dad don’t piss away their inheritance.

[rocket surgeon]

 proterra was supposed to save the planet via ev school buses (who doesn't love a yellow school bus?) is now going bankrupt  can you say pump and dump by your heroes?  weird how the same happened to solyndra.  where did all the money go?  their stock is worth 0.17/share from a high of $26.38 in january 2021  i'll bet there were some big winners in our dept of energy, eyna granholm et.al.

why are we paying russia over a billion $ for uranium then close a big uranium mine??
 turning it into a national monument??  pretty clean energy right there

[rocket surgeon]

Just read today that credit card debt topped $1 trillion for the first time and hardship withdrawals from 401k's is up 36% over a year ago. These are both troubling reports, and sadly, shows how fragile the economy is and what may have been driving the economy over the past year, IMO.

I know I am in minority on here, but I firmly believe that this economy has been very fragile since the start of the pandemic and needs to be watched closely. I will add, since it seems like I am the only on here that thinks the economy is currently in a dangerous spot, that I more concerned than I was a year ago on the economy.

  i'm charging everything, then holding out for the bailout

[🏀]

I have said it many times, I really do not know how many people have lived the lifestyle they have in recent years. My hope for them is that Mom and Dad don’t piss away their inheritance.

Well said, Goose.

There’s a lot of Gen-X and older Millennials playing the wrong game plan.

[jesmu84]

Jesmu

I think saying 50% is teetering might be very wishful thinking. This economy has been smoke and mirrors the past few years, possibly longer, and not sustainable, IMO.

Good news, our government has proven not to have the stomach for having economic hardship and likely will continue to save the day.

I have said it many times, I really do not know how many people have lived the lifestyle they have in recent years. My hope for them is that Mom and Dad don’t piss away their inheritance.

I wouldn't say it's just young folks. I think there's lots of middle aged families and current 60+ on the lower end of the economic spectrum that are teetering on the verge of complete collapse.

I listen to coworkers of mine speak to barely making it paycheck to paycheck or not having much for an emergency. (Private subspecialty hospital)

[rocket surgeon]

I wouldn't say it's just young folks. I think there's lots of middle aged families and current 60+ on the lower end of the economic spectrum that are teetering on the verge of complete collapse.

I listen to coworkers of mine speak to barely making it paycheck to paycheck or not having much for an emergency. (Private subspecialty hospital)

  what the hell is going on here?  i thought the inflation reduction act had this all taken care of...even ice cream is getting out of control

[Goose]

Jesmu

I agree that it would a not just young people that fall into that category. I know people in that the 50+ age group that are not properly prepared for retirement, yet do not seem too concerned about it. I think the % of Americans that are overextended is a very big number and that has been my concern.

I have my fingers crossed that our economy can navigate the choppy waters and a crisis is avoided. If not, I think there is going to be a real mess that none of us want to see.

[MU82]

Goose, the only sure thing is that you'll eventually be correct. Those who predict a rough economy or a recession or a stock-market correction are eventually right 100% of the time.

From 2010 through 2020 on the main investing site I used to write for, there would be a dozen predictions of economic doom a month. And eventually, when the pandemic hit, they were right. Of course, those who lived in fear for that entire decade missed out on one of the great stretches ever for investors, a chance to build serious wealth.

I am not doubting that your gloomy forecast will come true. I expect it to eventually. But this is the investing thread. What are regular investors like you and me and every other Scooper supposed to do about it?

I have a higher percentage of my holdings in cash (and cash equivalents) than I ever have. Most of that is a function of my life stage; I'm retired and my wife is retiring later this year, so we've taken some of the risk out of our portfolio. But we still are pretty significantly invested in the market, mostly in boring, dividend-growing companies everybody has heard of. For my situation it makes no sense to invest any other way. I'd be curious to hear about your plan.

[rocket surgeon]

Goose, the only sure thing is that you'll eventually be correct. Those who predict a rough economy or a recession or a stock-market correction are eventually right 100% of the time.

From 2010 through 2020 on the main investing site I used to write for, there would be a dozen predictions of economic doom a month. And eventually, when the pandemic hit, they were right. Of course, those who lived in fear for that entire decade missed out on one of the great stretches ever for investors, a chance to build serious wealth.

I am not doubting that your gloomy forecast will come true. I expect it to eventually. But this is the investing thread. What are regular investors like you and me and every other Scooper supposed to do about it?

I have a higher percentage of my holdings in cash (and cash equivalents) than I ever have. Most of that is a function of my life stage; I'm retired and my wife is retiring later this year, so we've taken some of the risk out of our portfolio. But we still are pretty significantly invested in the market, mostly in boring, dividend-growing companies everybody has heard of. For my situation it makes no sense to invest any other way. I'd be curious to hear about your plan.

  one of your better posts 82-
       for most of the people here, including myself, this is a good plan.  what goose, i believe is referring to is all of the rest of the people truly hurting and just getting by with what they have now.  it's putting them further into debt.  cashing in there 401's early with penalties, CC debt?  are you kidding me?  didn't unc joey side with CC companies making it more difficult to declare bankruptcy in order to get out of CC debt?

[rocky_warrior]

The truth about CC debt as a percentage of income.  It dipped during the pandemic as savings grew, but is at fairly normal level now.  Not near any highs or at a dangerous level.

[Coleman]

The truth about CC debt as a percentage of income.  It dipped during the pandemic as savings grew, but is at fairly normal level now.  Not near any highs or at a dangerous level.

This is what I was alluding to

[Goose]

The only concern that I have on the CC numbers is the trend. IMO, it is reflection that people are struggling to cover all of their expenses. The number itself is just a number to me, but the fact it appears people are using CC for everyday expenses is concerning.

[rocky_warrior]

I think it's well established that you don't believe in math Goose 

[Skatastrophy]

The only concern that I have on the CC numbers is the trend. IMO, it is reflection that people are struggling to cover all of their expenses. The number itself is just a number to me, but the fact it appears people are using CC for everyday expenses is concerning.

You're concerned about a downward trend in cc debt to income ratio?

[Pakuni]

The only concern that I have on the CC numbers is the trend. IMO, it is reflection that people are struggling to cover all of their expenses. The number itself is just a number to me, but the fact it appears people are using CC for everyday expenses is concerning.

As long as you're making your payments on time and in full, using credit cards for everyday expenses - given the rewards available - is a great idea.

[Goose]

Skat

CC debt was up 5% in the last quarter, which seems like a big number to me. That said, I am sure know the stats on this topic far better than I do.

[Skatastrophy]

Skat

CC debt was up 5% in the last quarter, which seems like a big number to me. That said, I am sure know the stats on this topic far better than I do.

You should look at the chart that rocky posted which is cc debt to income ratio. CC debt is falling when taken as a percent of income.

[Goose]

Skat

I looked at the chart. Again, that number is all inclusive, I believe, and does not factor in the % of people that have lower income. I always look at the economy from a firsthand view vs. relying completely on economic reports. From my little corner of the world, it appears that more people are struggling to make ends meet and I think that number of people is a nice chunk of our economy.

I have said it many times, I know what my wife and I make and often wonder how people making less are holding up. I have no idea how much money a couple with two kids, a house, a car payment, youth sports and other costs would need to make to keep their head above water. My guess, it is far higher than what the average family of four makes. That said, I could be 100% wrong on my thinking.

[TSmith34, Inc.]

I looked at the chart. Again, that number is all inclusive, I believe, and does not factor in the % of people that have lower income. I always look at the economy from a firsthand view vs. relying completely on economic reports. From my little corner of the world, it appears that more people are struggling to make ends meet and I think that number of people is a nice chunk of our economy. at the average family of four makes. That said, I could be 100% wrong on my thinking.

If it is all inclusive, by definition is taking into account people that have lower incomes.

And of course people are using credit cards for everyday expenses. We are largely becoming a cashless society. I seldom use cash, and very infrequently even use a debit card.

[Goose]

Smith

I understand what inclusive is, my point it the report does not breakdown the ratio by income. I assumed you would understand on using CC for everyday purchase as being buying on cards vs. going cashless.

[jesmu84]

Anyone concerned about restarting student loan payments and potential resulting consumer-driven recession?

[MU82]

Yeah, but how 'bout those investments, folks?!?!

[rocky_warrior]

Yeah, but how 'bout those investments, folks?!?!

They look safe.  The consumer seems to be in good shape. 🙂

[Hards Alumni]

+1. To comrade jesmu profiting and profiteering are essentially the same thing.

Google usury and Christianity.  It was a sin until it was conveniently not a sin.

Like a lot of things