*Investors Blog*

Operating margin of 6.6%. And dropping.

VW argues the cuts are necessary as it struggles with high production costs (margins), a stuttering switch to electric vehicles and rising competition in key market China. Aging factories, procurement, high energy costs, Russia Ukraine, and more are major problems. Porsche Audi has been propping up the company.

Change is the only constant. CEO Blume has tough decisions to make and nobody, including the German government is gonna like them. VW is a legendary company. Everything changes.
 
Noticing that the dollar and gold have been rising together for some time now. If you know you know.

If you don't - look up "the dollar milkshake theory". The whole thing from its creator Brent Johnson - not the google synapsis which is mostly wrong - well different than what Mr. Johnson says at least.
 
SC Maintenance said:
Noticing that the dollar and gold have been rising together for some time now. If you know you know.

If you don't - look up "the dollar milkshake theory". The whole thing from its creator Brent Johnson - not the google synapsis which is mostly wrong - well different than what Mr. Johnson says at least.
Click to expand...
Synapsis! ha.......oh synopsis

Dollar (DXY) got a charge out of USA rates going UP.

1730290982853.webp





But gold paints a better picture of not that much confidence...........the last 5 years

1730290857066.webp
 
Dave Hess said:
Contribution limits are still way too low.
Click to expand...
Nah, at that level (well after getting the max employer match), you are usually better off contributing after tax to an IRA, then rolling that after tax amount to a Roth. Financial advisors usually leave that trick off of the table. I think it's because they think they will get more assets under management if it's pre tax.
I wish I'd known about the backdoor Roth 20 years ago.
 
Dave Hess said:
Contribution limits are still way too low.
Click to expand...
I disagree even though I would personally take advantage of a higher limit.

Yes, if the purpose of a 401k is to give individuals the the maximum ability to forgo taxes today (or "tomorrow") no need to set the max contribution where it is. But if it is to create a tax advantaged situation to promote retirement savings, seems like a reasonable contribution limit over a working lifetime. Contributing to the max would give one a nice sized nest egg at retirement.

Also, plans have the options to allow contribution up to the combined employer and employee contribution limit, $69K this year going up to $70K next year, seems reasonable (honestly seems excessive to me) to contribute up without the limit needing to be higher.
 
401K's were the solution to the lack of pensions. Most pensions were always capped as a percentage of income. They were never intended to fund a full jet-setter lifestyle. You were supposed to have other investments and savings.

I agree that the government spends way too much but also taxes way too little - and a 401K is just another tax break. I don't want to pay more taxes either, but if everyone were paying more, possibly the public would care about the debt.

So its not really a investment or even retirement position, its a tax policy / govt debt position.
 
I was fortunate to get 3 retirement plans from my employer.


IRAs should have a $50K yearly contribution limit
401K / 403B should have a $80K yearly contribution limit
 
Last edited:
Dave Hess said:

Boeing machinists to vote on new proposal with 35% raises that could end strike​

https://www.cnbc.com/2024/10/19/boeing-workers-to-vote-on-new-proposal-that-could-end-strike.html

Maybe strike will end soon.
Click to expand...


Boeing sweetened their offer of 38% raise over 4 years and bigger ratification bonus.

Hopefully strike ends soon.

https://thehill.com/business/4967423-machinist-union-endorses-boeing-contract-deal/

“ The latest deal would raise wages 38 percent over the course of four years, according to a release. Boeing also agreed to update its ratification bonus to $12,000 to employees under the collective bargaining agreement — up $5,000 from the previous offer — and increase its 401K contributions. “

More details here:
https://www.iam751.org/2024StrikeProposal/HighlightsOct31All.pdf
 
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Dave Hess said:
Boeing sweetened their offer of 38% raise over 4 years and bigger ratification bonus.

Hopefully strike ends soon.

https://thehill.com/business/4967423-machinist-union-endorses-boeing-contract-deal/

“ The latest deal would raise wages 38 percent over the course of four years, according to a release. Boeing also agreed to update its ratification bonus to $12,000 to employees under the collective bargaining agreement — up $5,000 from the previous offer — and increase its 401K contributions. “

More details here:
https://www.iam751.org/2024StrikeProposal/HighlightsOct31All.pdf
Click to expand...
I suspect China will take over the passenger aircraft business in less than a decade. We will see but you can bet it doesn't cost half as much to build a plane in China and from what I understand they are getting ready to compete on the world market.
Blame greedy workers but Boeing will get no sympathy from me should China sending them packing. Sure a bit of a stretch right now, just wait and see.

https://edition.cnn.com/2024/02/19/business/china-comac-c919-international-debut-intl-hnk/index.html
 
^^^ IAM leaders recommend acceptance of the latest contract offer. They'd be stupid not to take it. Then 10% of them can look forward to a layoff. Keep voting the ever better offers down and maybe 25% will be laid-off. Forget trying to force the reinstatement of the heritage pension. Wish I could be making 38% more in 4 years than I'm making now. Not to mention the other incentives.
 
alarmguy said:
I suspect China will take over the passenger aircraft business in less than a decade. We will see but you can bet it doesn't cost half as much to build a plane in China and from what I understand they are getting ready to compete on the world market.
Blame greedy workers but Boeing will get no sympathy from me should China sending them packing. Sure a bit of a stretch right now, just wait and see.

https://edition.cnn.com/2024/02/19/business/china-comac-c919-international-debut-intl-hnk/index.html
Click to expand...

I can see your point of view of China growing their aviation industry….. but I think Airbus and Boeing are too far ahead in terms of the various airliner designs they are currently selling.
 
Dave Hess said:
Something tells me they want the full 40% and most will vote no.
Click to expand...
They'd be stupid to continue a strike over 2% over 4 years. And Boeing will not reinstate a pension. The IAM members don't take into account what the company has gone through in the last 5-6 years, and want to make-up their pay like it was all roses for the last 5-6 years. They act like Boeing hasn't had any struggles and has endless cash to pay them. Part of Boeing's problems aren't all management, some stems from QA practices by the workers in the factory.
 
Machinists see the billions and billions of cash for stock buybacks and now they want a cut of the pie.

Hopefully this gets resolved soon.

I was in the PNW back in July and it’s not a cheap place to live, I can understand why they feel their wages are stagnant.
 
Dave Hess said:
I can see your point of view of China growing their aviation industry….. but I think Airbus and Boeing are too far ahead in terms of the various airliner designs they are currently selling.
Click to expand...
They have to sanction proof themselves and not be in the position Russia is. But half of the components in the C919 are foreign made.
 
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