stock market, jobs, economy all plummeting under trump

Discussion in 'Politics' started by UncleBuck, Feb 2, 2018.

  1.  
    BarnBuster

    BarnBuster Virtually Unknown Member

    You've got what, decades before you retire? Like C4 says, talk with a RIA and make sure you are diversified and you should be fine.
     
  2.  
    gonnagro

    gonnagro Well-Known Member

    A 401k is a long term investment. If you are not going to retire anytime soon then increasing your contributions was the correct thing to do to take advantage of this downturn. Too a long term investor this is essentially a non-event, just something to talk about and spend time searching for bargains.
     
  3.  
    see4

    see4 Well-Known Member

    Experts who actually know what they are talking about are saying something slightly different.

    Regardless of the fact. Trump inherited a booming economy with a steady growth in GDP and a relatively subdued inflationary rate. He then made the entire planet lose confidence in the US dollar, slowed growth, made inflation grow faster than it should have, and then introduced a tax cut for the wealthy sending even more signals of uncertainty through all markets. We are seeing corrections, market volatility and soon a bearish market.

    What do you think happens in a volatile market? Economic growth is stymied, that's what.

    And your penis is tiny.

    Do you not know the difference between "too" and "to"? That's pretty basic stuff dude.
     
  4.  
    SneekyNinja

    SneekyNinja Well-Known Member

    You said it was a buying opportunity right before a 10% drop...

    Ergo, you're an idiot, no-one wants your advice.

    Lol, she doesn't have a 401k.

    She works for minimum wage and commission and had to default on 12k of college debt.
     
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  5.  
    schuylaar

    schuylaar Well-Known Member

    I'm sure it's in bonds. I've never set it up distribution..with that knowledge where would you put it?
     
  6.  
    schuylaar

    schuylaar Well-Known Member

    I'm going to bookmark this conversation for a PM perhaps? I have demographic that I don't wish to advertise. I used to be very aggressive but I'm older now with less in.
     
  7.  
    BarnBuster

    BarnBuster Virtually Unknown Member

    sure
     
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  8.  
    schuylaar

    schuylaar Well-Known Member

    my company matches 100% up to 3% which I was already doing, then i added 2% because they match 50%..not bad 4% total on 5%. No sense in leaving money on the table.
     
    BarnBuster likes this.
  9.  
    gonnagro

    gonnagro Well-Known Member

    If you are not interested in actively managing your 401k, IMO then just put it all in target date fund. That’s why they exist.

    Your company has good matches.
     
  10.  
    UncleBuck

    UncleBuck Well-Known Member

    down another 400 points again so far today. you trumptards had better hope for a rally, and the magical non-volatility fairy
     
    abandonconflict likes this.
  11.  
    gonnagro

    gonnagro Well-Known Member

    Last edited: Feb 9, 2018
  12.  
    Fogdog

    Fogdog Well-Known Member

    This article from

    https://www.cnbc.com/2017/11/20/the...ng-and-now-equals-nearly-half-of-u-s-gdp.html

    Was published toward the end of November.

    "Corporate debt is at its highest level relative to U.S. GDP since the financial crisis , and while not now a concern, that mountain of corporate IOUs could quickly turn into a heap of worry under the right circumstances.

    Low rates have encouraged companies to borrow, but instead of using the money to expand, they have used it to boost their share prices, he said."


    Do you really believe that the underlying world economy is growing and strong? What reason can you give for that belief? Past results, perhaps? The soothing words of a paid-for-by-the-banks analyst, perhaps? Your own research? (just kidding, you are free of original thought). Recall that past results don't predict future profits.

    Trump's policies are both inflationary and recessionary. The smart money sees this and isn't buying -- literally.

    When companies take on large amounts of debt, they become more vulnerable to small changes in the economy. We are already seeing investment groups being wiped out by heavy bets that volatility would stay low. The next shoe to drop are companies caught wrong-footed by changes in interest rates. How many companies are loaded with debt? Most are:

    • At 45.3%, the ratio of corporate debt to GDP is at historical highs, having recently surpassed levels preceding the last two recessions.
    High debt that was spent on bolstering share prices instead of investing in the company gave you a false impression.
     
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  13.  
    gonnagro

    gonnagro Well-Known Member

    Markets rebounded 500pts in 20min. Day-traders dream. Missed that one, but like I said, "if you have cash this is a buying opportunity."

    On a positive note, there should be chances next week too.
     
  14.  
    see4

    see4 Well-Known Member

    It's really tough to say.

    Bonds is a very conservative hedge. So it sounds like you are in a conservative growth fund. And it doesn't sound like you are very diversified.

    If you don't mind me asking, how much dependency do you have on your 401k as part of your retirement plan? How long have you been paying towards it?

    Also, is there a way you can check what sort of returns you've been making over the past 5 years?

    Do any of your funds have a Morningstar Rating?

    A target fund may be an ok option if you want to play it very conservative. Probably not good if you are looking for more aggressive growth.
     
  15.  
    schuylaar

    schuylaar Well-Known Member

    I'll get the info and PM you. There's not much, I've just started. It would be great to do 'catch-up' provision.
     
  16.  
    Bugeye

    Bugeye Well-Known Member

    Friday afternoon short cover rally, imo. Not sure we've seen bottom yet, Monday will be interesting. Good luck if you're day trading this shit! :bigjoint:
     
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  17.  
    Fogdog

    Fogdog Well-Known Member

    You claim that this is "just a correction" and then talk about minute-by-minute market changes. You don't have a clue.

    It doesn't matter what happened today or yesterday, even. The market might be up next week or it might be down, what you are missing is: We don't have the important bit of information -- how many and which companies will default due to debt stress brought on by rising interest rates? We won't know this for a few more months, maybe not until September. Today's market volatility is due to this unknown.

    Debt driven recessions are the worst, by the way.
     
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  18.  
    greg nr

    greg nr Well-Known Member

    The problem is, trump is an idiot. He supercharged a hot economy with tax cuts, which will raise interest rates. He is also planning a 1.5 trillion dollar infrastructure plan where the guv will only contribute $250 B in actual funds. That means states and private industry will have to issue bonds to raise the rest of the money. That will also raise interest rates.

    If interest rates rise, money will have another place to go. Investors hate cash right now. It's next to worthless. As soon as the market levels off, it goes right back in.

    If interest rates rise, and infrastructure spending causes a lot of high quality bonds (many interest free) to start competing for investment, the market will fall, and not by a little. A trillion dollars will move.

    But higher interest rates will hurt consumer spending, which will hurt revenues.

    We might end up looking back fondly at 2007.
     
    abandonconflict, see4, Bugeye and 2 others like this.
  19.  
    Fogdog

    Fogdog Well-Known Member

    Comparing what's happening today with 2007 seems a bit extreme to me. That said, agree that inept administration, rising inflation, interest rate rises, low corporate profitability, high rate of corporate debt and years of low income growth along with high debt among wage earners/consumers sounds like a recipe for a nasty recession. I think today's market "correction" is a symptom of investment money moving away from stocks in anticipation of recession 6-10 months hence. But then again, what do I know compared to @gonnagro?

    If I were cynical, I'd say that recession will be delayed until after the election this fall.
     
  20.  
    schuylaar

    schuylaar Well-Known Member

    awesome post!:clap: and yes, trump IS an idiot. I can totally see this happening..the issue is..who HAS money to spend NOW? people are tired of 2-3 jobs..you're in a corporate role, are you guys doing good?
     

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