+1
Rebalancing with the occasional reallocation (as in tweaking them) is all you need to do for long hold accounts. Based on the data, it wins all the time.
OT: Stock and Investment Thread
- Thread starter RU05
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Rebalancing with the occasional reallocation (as in tweaking them) is all you need to do for long hold accounts. Based on the data, it wins all the time.
QT isn't going to mean crap for about 18 months (unless the Fed significantly increases the rate of tightening). There is so much unused money with banks and the Fed has to suck all this up before it directly impacts the market. Keep an eye on the reverse repo rate of banks.
Traveling home today from a short family trip. Perhaps tomorrow we will start converting to SSO if the S&P 500 reaches the magic 25% down level. Gotta lock in these gains while they last!
It's comical watching people sell now and locking in their losses. Fear and panic are fascinating.
Actually the staples and utilities have come off their lows and a handful have turned green for now. I'm still waiting on them though because I don't think many of them have come down enough to get to an "acceptable yield" given where rates are going.
I'd say the game right now is waiting on the next CPI?
But we can really just watch the gas prices. If they continue to tick upwards the market is going to continue to drop.
But we can really just watch the gas prices. If they continue to tick upwards the market is going to continue to drop.
??? Maybe, you know, they're locking in their profits? Like you suggested yourself? Would you be doing so out of "fear and panic"? Or just out of prudence? You err in assuming the motives of others.
Or, even if they are locking in losses, they are also limiting their losses.
Yes. I mentioned this in a post a week before the last CPI #s were released. We really can just get out there ourselves, out of our bubbles, and witness firsthand the level of inflation, without relying on a Fed formula and official report, which is typically lagging a few weeks. I took an extended road trip in NC in late May into early June, and what I saw was concerning per the impact on working class and middle class folks. The official CPI for May was not a surprise. In fact, I think the Feds low-balled it. Housing, groceries/food, gas expenses are showing no signs of decreasing and in fact are increasing. Restaurants? Wow. Don't see how many will survive all this.
Nope, they are locking in losses or much lower profits than before. Really sad to see people behave so irrationally.
Everything I buy they raised the prices especially restaurants. It’s like they think nobody notices but it will have an affect on some of them and I see some of they failing because they don’t have the demand.
The only thing that going down in price are stocks.
ADBE earnings coming out tonight but already down another 11 points right now. It doesn’t really matter, it will be another excuse to bring tech down to the next level.
You really need to take a hard look at the 2x and 3x ETFs. That's the play when the market is down so much across the board.
When it it’s 30% down But I will be buying at 25% down. The 30% will be in July. However, I going to ease up on tech and buy other companies that are down big, maybe Tech doesn’t come back so quick this time.
Going to take a look now to see if anything is juicy.
I agree. Those 2x or 3x INVERSE ETFs are killing it in these type of down markets.
That's narrow-minded and short-term thinking. Jump into those 2x or 3x ETFs, sit back and relax. Long term trend is the market goes up, not down.
Alternatively, they are locking in profits and buying later at lower prices
From a market POV, it will like the R's taking over congress in a few months. The market loves DC gridlock!
Not looking to feed the CE board members.
But I think the market will like the R's as the D's take the heat for inflation.
??? The Fed is independent. The executive branch does not control it. Powell's a Republican and was appointed to the Fed Chair by Trump. As for Shmuel Zielonka, he is a staunch Republican.
Energy policy as well as fiscal policy play into inflation.
But even if they are incorrect I think the perception is this is a democrat problem, so just on that, I think the prospect of the R's winning big would lead to bump for the market.
Well... the US market and international markets will only recover if the underlying problems are effectively addressed in a timely manner, regardless of which party controls our three branches of government. Bigger picture "stuff."
Do we not think R's would be aggressive in terms of getting domestic fuel out of the ground or getting pipeline projects going so as to move that oil around?
As a left leaner myself I have to admit Dem's are certainly not addressing the current energy problems in a timely manner. IMO they are missing an opportunity to compromise on oil now for sustainable later type policies.
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For the larger part of the country who doesn't understand hw fiscal policy works, they will vote with their perceptions in the economy and how it impacts their wallets, thus, they will blame the current administration for that.
Very true, but overall, Wall Street likes divided government since they know nothing will get done.
Powell was reappointed by Biden. He also meets with the WH regularly and is influenced by them (and this goes for all Fed Chairs).
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There's finding oil, extracting it, transporting it, storing it, refining it, storing fuel, bringing it to market. Domestic oil companies haven't invested in infrastructure at a level that supports adding volume, based on past market demand. Russia created the imbalance. As for pipelines, I believe that's more to do with Canadian oil shale and ND/SD and getting the flow to our gulf refineries. Much has been made about a new pipeline route, but an existing pipeline is still in place, as I recall. The Dem emphasis on transitioning to green energy, well, yes. Nice ideal. But reality? Not ready for prime time. We'll be oil-reliant for a few decades. As for politics, we all need to find a way to unite very soon and get stuff done, or we're done....