Or a 3,4,5 year CD ladder. Lock in higher rates while they’re available.
Investing Strategies. What is your move?
- Thread starter PimTac
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Or a 3,4,5 year CD ladder. Lock in higher rates while they’re available.
yeah, you can lock em in or miss out on higher rates, .. and by locking into CD's you also miss the opprtunity to swtch over to bond funds when the interest rate is falling.. that is the play. One thing I know for sure is if I had a crystal ball, I would own the street named Wall.
The Apple Savings program recently introduced has collected over $1 billion in just four days.
www.imore.com
Apple Savings is a massive success as over a billion dollars deposited so far
That's a lot of savings accounts.
www.imore.com
Bad news for the big spenders in the Bay Area. Nordstrom is closing their San Francisco stores.
Nordstrom to Close Two Stores in Downtown San Francisco
Retailer will shutter a 312,000-square-foot department store in August and a 45,500-square-foot Nordstrom Rack in July, citing “dynamics of the downtown.”
therealdeal.com
Thinking about it last night after seeing your question, once this 12 month period is up I may sell all the shares I purchase this year and put the money into an index fund such as FTSE100. And then start the process again of buying small quantities of stocks each month. Hopefully in January I can increase my monthly spend on stocks to £150 or £200 a month.
My thought process is I'm 'saving' up a small lump of money over a 12 month period and then putting it into something more secure for the long-term. During that 12 month period hopefully I turn the small lump I save into something a little bit better, albeit I understand it carries a higher risk. That said, by building up a portfolio of lots of small stocks over 12 months the risk is minimised.
I'm currently 30, we have savings but don't get a great deal from the bank for them. I see trying this method as being a bit more exciting with a better potential and also it's nice to do it for yourself.
Something else I have to consider is I'm currently doing this through eToro. I picked this as I liked the user interface and I saw a few good reviews about it when I did a bit of research online. Is there a better value alternative?
PacWest Bank is the next bank to go, now on the morphine drip. Shares plummeting after hours almost 60%
I think the situation is worse than what folks are saying.
There are a number of banks that are in trouble right now. That goes against what the powers in charge have been telling us
I dont think there is any issue with banks. I think it's typical cycle part of slowing the economy. Banks fail all the time but now the media will be making each one sound like the end of the world.
All I know is my wife and I got lucky once again. Just like we bought a new home in 2006 and a short while later values in our area went through the roof the same is happening right now on the house we closed on 6 weeks ago. Area has taken off, builder cutting back on included options, prices going up, they cant build them fast enough.
This is based on my micro environment = the Carolinas
Nationally homes sales taking off but this area, never stopped and is now insane.
All I know is my wife and I got lucky once again. Just like we bought a new home in 2006 and a short while later values in our area went through the roof the same is happening right now on the house we closed on 6 weeks ago. Area has taken off, builder cutting back on included options, prices going up, they cant build them fast enough.
This is based on my micro environment = the Carolinas
Nationally homes sales taking off but this area, never stopped and is now insane.
There is that old saying, when your neighbor loses his job it’s a recession. When you lose your job then it’s a depression.
The same could be said about banks.
Here is an ominous chart from FRED which is a reliable source.
Move the slider to expand the chart.
Move the slider to expand the chart.
10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
The 10-year minus 2-year Treasury (constant maturity) yields: Positive values may imply future growth, negative values may imply economic downturns.
fred.stlouisfed.org
The banking problem is a management issue. Management's decisions could not withstand the old fashioned bank run, even though they were solvent.
In a way, yes as the current managers had no idea of historical consequences.
It started with extremely high increases in spending out of DC which led to inflation which affected fixed income instruments. The banks didn’t adapt because of lack of knowledge and more importantly that all this happened in a short period of time.
The commercial real estate sector is starting to show its vulnerability.
All this tells me that we should be vigilant. Those who prepare now for difficult times ahead will be better off than those who say it’s different this time.
Many small banks are just not able to withstand bank run no matter how well they are managed. SVB for example have a bank run with VCs telling their startups to move money out of SVB in short notice, and FRB had a business model of attracting high net worth clients (only 30-40% FDIC insured deposit) and therefore low default rate and high profit per labor cost (each loan is bigger, no credit card to deal with, and chances to sell them investment products), but they run fast when in fear of collapse which leads to collapse. Then there are banks who were holding onto a lot of worthless debt after interest rate rising too fast, but they cannot hold them to maturity, and they are not too big to fail.
Oh they knew... Management chose their liquidity; the regulators were handcuffed and were lax at the same time.
Disagree. They overextended themselves because they made more money by selling more loans with respect to cash reserves. In a way they were forced to, with low interest rates. But that's the business they are in.
First Horizon Bank - FHN is down 30% today. TD Bank had been trying to buy them at $25 a share. Regulators weren't going to let that happen. Everything I read is TD still wanted them.
There trading around $10.
I wish I had a better understanding of how to research banks. I know enough to know I don't know enough so I stay out.
There trading around $10.
I wish I had a better understanding of how to research banks. I know enough to know I don't know enough so I stay out.
Not what I read (no expert). They doubled their book in a short period due to all the money pouring into silicon valley. How they got that money was inconsequential to their failure. They needed to invest their money into something, so they chose long term treasuries and MBS's. When Interest rates starting rising, those investments lost a ton of money - which any person with a 3rd grade education and a walmart calculator can figure out.
They should have been liquidating those positions as soon as interest rates started going up. It would have been at a loss, but they may have remained solvent. Instead they waited to long and tried to fire sale a bunch in mass. This caused them to drop 50% in value, which made them insolvent not just illiquid. Some tech VC's caught wind of this and told their clients to get out if they could. It was a bank run but on an insolvent bank.
Regulators should have seen this coming, apparently they don't own a calculator or posses 3rd grade math skills either.
The official narrative from the fed basically says exactly this. https://www.federalreserve.gov/publications/files/svb-review-20230428.pdf
As an aside, I can't keep but thinking the social security trust fund is 100% invested in treasuries.
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