I meant this hurricane season. If that happens very big trouble.
Investing Strategies. What is your move?
- Thread starter PimTac
- Start date
I meant this hurricane season. If that happens very big trouble.
This is a basic Economic pricing tenet. Market sellers will raise prices, above production cost, until demand levels off. The goal is profit maximization. If a product has inelastic demand, expanding production (with associated cost) is not as important.
In the case of gasoline, with its inelastic demand, the upper limit is pretty high. But you already knew that...
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We are sometimes moving off topic regarding Investing strategies. But....
This will not be accepted well by many here. Since WWII, my opinion is that our country has developed an entitlement attitude towards excesses at cheap prices. Overly large homes. Overly large vehicles. Too many/too much of many things. People here at BITOG state "it's my right to drive a pick up truck to commute with". To "buy, use, store thousands of rounds of ammo". To "have a home with four bathrooms". Few, if any, other nations have our standard of living regarding excesses.
We chose not to address this ourselves. Now, $$$$$ might force the adjustment. We have to address the excesses eventually. Kicking the issues down the road can only last so long. Too bad we can't moderate the changes better.
Investing strategies? We need to invest in the future and it is going to hurt because of our entitlement lifestyle. What good is oil/gas self sufficiency if we can't build vehicles due to chip shortages? Just my opinion. Flame suit on.
I use the word "our" because I don't live in a glass house.
This will not be accepted well by many here. Since WWII, my opinion is that our country has developed an entitlement attitude towards excesses at cheap prices. Overly large homes. Overly large vehicles. Too many/too much of many things. People here at BITOG state "it's my right to drive a pick up truck to commute with". To "buy, use, store thousands of rounds of ammo". To "have a home with four bathrooms". Few, if any, other nations have our standard of living regarding excesses.
We chose not to address this ourselves. Now, $$$$$ might force the adjustment. We have to address the excesses eventually. Kicking the issues down the road can only last so long. Too bad we can't moderate the changes better.
Investing strategies? We need to invest in the future and it is going to hurt because of our entitlement lifestyle. What good is oil/gas self sufficiency if we can't build vehicles due to chip shortages? Just my opinion. Flame suit on.
I use the word "our" because I don't live in a glass house.
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Ego plays a big role in that lifestyle of that excess mentality (YOLO).
______ morals and values is much more important.
That's all we need now. Ouch
Demand Destruction: YahooFinance article
A form of CDS. ( Consumer Defensive Spending)
It will get worse as oil is projected to go to $140-150 a barrel according to Goldman Sachs and JPM.
Buying less gas is the focus but how is it done? Skip the traveling vacation for something closer to home is one likely possibility. The travel and tourism sector will feel the effects.
Another effect is people trading in larger vehicles for more fuel efficient ones.
The article mentions $6 gasoline. I think we will see $7 this summer.
I see $7 and change premium at a few Shell and Chevron. And not the outlier areas; here in Silicon Valley.
Redfin has released their latest reports on the state of the real estate markets. Seattle has been one of the hotter markets in the country. There are signs that the market is slowing.
A paragraph from the article. (The bold is my doing).
“As inventory continues to climb, homebuyers are backing off, affecting the housing market both nationally and in Seattle. Tours, offers, mortgage applications and other requests for homebuying needs fell 12 percent last week, according to Redfin's homebuyer demand index measurement. New listings fell 2 percent over the four-week period, Redfin said, and 21 percent of sellers dropped their original list price.”
https://komonews.com/news/local/red...r-year-increase-in-asking-rent-in-the-country
A paragraph from the article. (The bold is my doing).
“As inventory continues to climb, homebuyers are backing off, affecting the housing market both nationally and in Seattle. Tours, offers, mortgage applications and other requests for homebuying needs fell 12 percent last week, according to Redfin's homebuyer demand index measurement. New listings fell 2 percent over the four-week period, Redfin said, and 21 percent of sellers dropped their original list price.”
https://komonews.com/news/local/red...r-year-increase-in-asking-rent-in-the-country
One could argue that money is worth more than life I guess.
I too would drop my asking price just to dump the property.
If it were that simple, I would not have made the initial statement. Let's just leave it at that.One could argue that money is worth more than life I guess.
And if things were more simple (which they were not) when the SHTF, then things wouldn't have played out like they did. The economy did quite well after things got derailed back then and the world learned how to move forward. What's happening right now is way more complicated than claiming it's all the fault of shutting down the economy for a short time 2 years ago.
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True in some ways, but many things still have not recovered. Businesses just gone. I did fine, when I saw REITs and Preferred stocks get halved, I was the clown buying with every $ I had. Businesses relying on foot traffic, stake to heart.
I give you the entire town of Sumas. Wiped out.
Point is, hysteresis. DOWN and big down, then up for easy free money then down................but has it been two years since climbing out? No. We climbed out and oops...................
The small towns in this country really got whacked. The focus is on the cities unfortunately.
Sumas and Lynden are wonderful towns.
The financial crisis of 2007-2008 took 8 years for employment to recover.
Let's see, how low is unemployment today?
Let's see, how low is unemployment today?
There was only 3 whole months of market reaction when the pandemic hit. Then 21 months of positive market growth in the markets. How did "shutting down the economy" for a short time cause such a reaction?
Now the down turn in the markets is being cause by the world jumping back to life more than ever, and supply is not keeping up with demand, and we all know the rest of the story. And unemployment is at an all time low and there are tons of available jobs, but apparently nobody wants to work any more to get the supply back up to meet demand. People need to get off their arses.
^^^ Look at those graphs. The market grew more in the 21 months AFTER the "economy shutdown" (Mar 20 to Dec 21 - NOT including the 3 month down turn from Jan-Mar 20) than it did from mid 2017 to the start of the pandemic (Jan 20). Crazy, right? There was a DOW gain around 6750 from mid 2017 to Jan 2020, and there was a gain of 7900 in the DOW between the end of the "economy shutdown" to Dec 2021.
Maybe we should "shut down" the economy more often.
Maybe we should "shut down" the economy more often.
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