Investing Strategies. What is your move?

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greenjp said:
I think what's Dave's talking about (and he can jump in here to correct me if I'm wrong 😁) is that regardless of the tricks, discounts, payment plans, etc, there are millions of people who spend a significant (ie like some measurable percentage of their income) on expensive stuff like iPhones or other "luxury" goods who could get by just fine with lower cost options and should by any objective measure be putting that money towards paying off debt, making rainy day funds, saving for retirement, etc.

My street for instance is lined with many cars that cost a whole hell of a lot more than my 2006 Accord but I'd bet dollars to donuts their retirement accounts aren't as large as mine 🤑

I have an iPhone SE, bought "refurbished" for $300. There isn't a person on Earth who actually needs one of the big ones at 4x that price, yet Apple sells a ton of them to people who make a quarter what I do.

jeff
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It depends on how the individual uses their iPhone. For practical purposes it’s not just a phone. I’m typing this comment on my iPhone 11. I also pay for things with it, check investments, banking, my medical history is on it. All my fitness is tracked by it. I use it for navigation sometimes. My hearing assist device is connected to it. There are a lot of other things I can do with it as well.

For less than $50 a month one can get the latest model. I’m not of that group, as long as this iPhone serves my needs then I won’t upgrade. In the grand scheme of things $50 a month is not that much.
 
PimTac said:
It depends on how the individual uses their iPhone. For practical purposes it’s not just a phone. I’m typing this comment on my iPhone 11. I also pay for things with it, check investments, banking, my medical history is on it. All my fitness is tracked by it. I use it for navigation sometimes. My hearing assist device is connected to it. There are a lot of other things I can do with it as well.

For less than $50 a month one can get the latest model. I’m not of that group, as long as this iPhone serves my needs then I won’t upgrade. In the grand scheme of things $50 a month is not that much.
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While I am not an Apple customer (mostly) this post is spot on for customers that use their iPhone as @PimTac
There are others who purchase these wonderful but expensive cell phones as jewelry. Same for high end Androids, of course.

I did not know some of the cell's capabilities such as heart monitor until you posted them. Amazing. Simply amazing. And if I understand Apple, more to come.
 
Next month will be a quiet one from the Fed as they will meet in Jackson Hole Wyoming to ponder their course of actions. The scenery will be spectacular as always.
 
greenjp said:
I think what's Dave's talking about (and he can jump in here to correct me if I'm wrong 😁) is that regardless of the tricks, discounts, payment plans, etc, there are millions of people who spend a significant (ie like some measurable percentage of their income) on expensive stuff like iPhones or other "luxury" goods who could get by just fine with lower cost options and should by any objective measure be putting that money towards paying off debt, making rainy day funds, saving for retirement, etc.

My street for instance is lined with many cars that cost a whole hell of a lot more than my 2006 Accord but I'd bet dollars to donuts their retirement accounts aren't as large as mine 🤑

I have an iPhone SE, bought "refurbished" for $300. There isn't a person on Earth who actually needs one of the big ones at 4x that price, yet Apple sells a ton of them to people who make a quarter what I do.

jeff
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You took the words out of my mouth.

Low income folks just need a $100 Android cellphone and spend the rest of the money saved not buying an iPhone on food for their kids. Food in the refrigerator is much more important than a new iPhone every 2 years.

I know a few very wealthy folks and they all have $100 Android cellphones…..
 
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Dave Hess said:
I know a few very wealthy folks and they all have $100 Android cellphones…..
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My wife grew up in Darien CT, my MIL still lives there, she has cousins who live there, and we have lots of friends there, and I can assure you a lot of really wealthy people there have lots of really expensive things including iPhones, $5M houses, Bentleys, full memberships at both CCs in town each with six-figures upfronts, and they all had it by the age of 30.
 
PWMDMD said:
My wife grew up in Darien CT, my MIL still lives there, she has cousins who live there, and we have lots of friends there, and I can assure you a lot of really wealthy people there have lots of really expensive things including iPhones, $5M houses, Bentleys, full memberships at both CCs in town each with six-figures upfronts, and they all had it by the age of 30.
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Did they make or inherit their fortune? One would guess that makes a difference.
 
In between. Daddy was on Wall Street and with his connections they’re now on Wall Street. I mean they still needed to do well in school and show up for work but million dollar salaries were basically guaranteed.
 
JeffKeryk said:
Did they make or inherit their fortune? One would guess that makes a difference.
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Although we have very good friends who are the coolest, nicest, and most decent human beings on a planet who both inherited a lot of money. His family imported beer and her family owned a huge business products company.
 
So it’s official now if you use the traditional methods that have been in place for decades.

Recession.

Starting to see and hear more stories that housing is slowing down and sharply at that. Even in a hot market like Seattle-Tacoma it is obvious. I used to see homes sold within days. Now it’s weeks.
 
PimTac said:
It depends on how the individual uses their iPhone. For practical purposes it’s not just a phone. I’m typing this comment on my iPhone 11. I also pay for things with it, check investments, banking, my medical history is on it. All my fitness is tracked by it. I use it for navigation sometimes. My hearing assist device is connected to it. There are a lot of other things I can do with it as well.

For less than $50 a month one can get the latest model. I’m not of that group, as long as this iPhone serves my needs then I won’t upgrade. In the grand scheme of things $50 a month is not that much.
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Now that I am (gulp) over 55, some months back wife and I switched to T-Mobile for their limited promotion from Redpocket.
Two new iPhone 13's, Magenta 55+ plan including all taxes and fees $70 a month. No contract.
For sending them our two phones, an iPhone XR and iPhone 11 they sent us two new iPhone 13s. So after taking into account Redpocket was still cheaper and with less frills over the two year period our real net cost for the two iPhone 13s is about $400 total. Was a good deal, I haven't been with a major network in over a decade. Furthermore we are very impressed with TMobile and we do get more services for that difference too. Airplane data, overseas too but it doesnt matter, scored those two phones for $0.00 which paid for in bill credits over two years.
 
PimTac said:
So it’s official now if you use the traditional methods that have been in place for decades.

Recession.

Starting to see and hear more stories that housing is slowing down and sharply at that. Even in a hot market like Seattle-Tacoma it is obvious. I used to see homes sold within days. Now it’s weeks.
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Im looking for it to slow... but maybe not to fast which it may not in the southeast. I am seeing some deals from builders in Florida but its still hot.
I suspect you will be correct and it will be sharp for many places. Not only that, we know the Fed is normally a bit late and then too long compensating. *LOL*
The ONE thing and one thing only that makes me wonder how severe is this. Unlike any recession in the past we did not have a shortage of everything in a consumers life. Meaning cars, trucks and also business materials. So I wonder if this stuff, as the pandemic and labor shortages ease come to market help us recover faster than expected.
I dont know the answers and I know the words "this time will be different" and it never is but I wonder, yet then again, we never had a huge budget deficit and national debt like now either. So we cant spend out way out of this one, its getting insane and has been a house of cards for a long time now.
So I know everything I just said contradicts itself and makes no sense at all *LOL* but then again, hasn't that been the Fed actions of the last 14 years?
 
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alarmguy said:
The ONE thing and one thing only that makes me wonder how severe is this. Unlike any recession in the past we did not have a shortage of everything in a consumers life. Meaning cars, trucks and also business materials. So I wonder if this stuff, as the pandemic and labor shortages ease come to market help us recover faster than expected.
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I think the component that will aggravate this is labor. The shortage of labor is affecting everything.

I have several large projects in my immediate area in various stages of construction. What I am seeing are work stoppages. One apartment complex got framed and enclosed with building wrap then sat for a number of weeks. Then they got the siding up and it stopped again. I did notice earlier this week that they finally painted the buildings and balconies were installed. Another project right across the street has been stopped for two weeks now. Land was cleared and leveled. The utilities are in. Now it’s quiet.

So my impression is that it’s labor plus some supply chain issues that are lingering. Add to this the rising rates and suddenly the demand has dropped 25% here. The timing couldn’t be worse.

Every downturn has its unique characteristics. It is difficult to compare previous times with what we see now.
 
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