*Investors Blog*
- Thread starter Warstud
- Start date
Weird day indeed. Broad market down fairly strongly. My portfolio enough in the green and I was playing only a single inverse fund lightly. Big boys betting Fed doesn't want bag holder label. Musical chairs anyone?
More interest rate hike (noise) or not?
It won't really work and they know it.
More interest rate hike (noise) or not?
It won't really work and they know it.
I see that rally didn't hold
Markets did better than I thought with all that crazy talk of reaching peak inflation.
Food and energy costs not included in CPI…. ?
All the gimmicks to lower fuel prices…. ?
We know things are in shambles and getting worse no matter how much CNBC cheerleading goes on.
2/3 of all Americans living pay check to pay check and exponential increase in credit card use.
I’ll admit I made a little money YTD and feel the calm before the storm is here.
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They are not doing anything about the supply side directly by controlling rates. They are just attempting to throttle a tight rope balance economy.
I've been an investor for over 40 years. One thing I've learned is that the stock market and recessions are not correlated in time. If anything, a big correction often precedes a recession and then the stock market recovers long before the economy. The stock market appears to be forward looking.
A recent article noted that (in Canada anyway) the period before a correction often generates the best returns. So getting out of the stock market because you think a correction is coming is dangerous. And how do you know when to get back in. The old saying is "never try to catch a falling knife." So I just stay invested and my investments go up and down with the market - and way up over time.
I try to follow Warren Buffet's advice. “It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. And his 2 rules for investment success: (1) don't lose money and (2) don't forget rule #1. In 40 years I've never made even one home run but I've had lots of singles and doubles. And over time that has worked out just fine. Boring investments can be very profitable.
A recent article noted that (in Canada anyway) the period before a correction often generates the best returns. So getting out of the stock market because you think a correction is coming is dangerous. And how do you know when to get back in. The old saying is "never try to catch a falling knife." So I just stay invested and my investments go up and down with the market - and way up over time.
I try to follow Warren Buffet's advice. “It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. And his 2 rules for investment success: (1) don't lose money and (2) don't forget rule #1. In 40 years I've never made even one home run but I've had lots of singles and doubles. And over time that has worked out just fine. Boring investments can be very profitable.
The Fed has lost control of the inflation. They raised their rate by 25 basis points last month to combat inflation but as of today it sounds like a 50 basis point hike is in the cards for the next meeting.
They could have raised it 50 basis points last month. This Fed is timid.
They could have raised it 50 basis points last month. This Fed is timid.
No. They know it won't work.
And they know they will kill the weak economy if they go too far
All the people responsible for this mess will be dead long before things return to normal.
This isn't like the inflationary period in the 70's and early 80's when the economy was weak and unemployment was at 10%, this is a unique global issue with many contributing factors. The economy is strong and unemployment is historically low, but due to the pandemic causing so many supply chain issues, China now being closed again, war in Ukraine and now we have bizarre things like bird flu impacting chicken supply it's like the perfect storm.
