You’ll never see $70 oil again.

[SC Maintenance]

First, I agree with you.

But let's not forget the stock market. On a whim 20 to 25 years ago Sue and I opened a separate 401K with just $4.000 in it. We invested "recklessly" in high risk tech stocks. It was our "mad money" to gamble with. That original $4,000 has turned into $80,000 plus last time I looked, which I seldom even do anymore.

My point is even those with very few financial resources, but having at least a whiff of financial self control, could have done very well for themselves. Imagine a low wage earner doing the same thing, even with just $1,000, and having the discipline to leave the money invested.

My point is, there are many opportunities in inflationary economies.

Scott

I would like you to invest my money

As a young out of college Engineer in 1999 I squirreled up enough money to put $2000 into a Roth IRA. I chose the Janus Mercury Fund which was supposed to be big tech stuff. The brochure was very nice. Well Mercury collapsed, then they sunsetted it and moved it into whatever this is now. I have purposely never touched this money again. This is it now. Not bad, but if I had just put it in SPX it would be over $17K now.

I use it as motivation to manage my own money / buy my own stocks which have done much better.

 

[JackWildfeuer]

I would say a lot of people either have really bad short term memory or an IQ bellow standard. Remeber when Covid-19 hit? Oil companies where paying people to take oil, gas and diesel off their hands.

Even the price of egg's has recently come down.


Even when you have something that is price inelastic if the market forces swing hard enough to either side it will be effected. Normaly though natural market forces combined with government shananigans and open market speculation keep things from swinging too far, too hard or for too long in any one direction.

 

[slo town]

I would like you to invest my money

Haha. We got lucky, very lucky. If our other IRAs and 401Ks were similarly invested we'd be fantastically wealthy. Full disclosure - our primary investments have been on the embarrassingly cautious side, which has cost us a whole lot of money in the long run, but at least we saved. Further disclosure, I'm one of those who believes in a debt free lifestyle, which has resulted in a lot of missed opportunities as well. I never liked the financial term "leverage". It seemed dangerous to me.

Scott

 

[Dave Hess]

I’ll go out on a limb and counter the idea that “ things will get back to normal”. The US oil industry will not go back and drill for $70 oil. Harold Hamm set the tone when Continental stopped drilling for $60 oil in North Dakota earlier this year.

I will say I was wrong if it goes back, but let’s see.

Unfortunately you are correct.

 

[Astro14]

Pretty clear that one person wants to argue politics but doesn’t want anyone else to close their thread. We are done here. Locked.