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re: 2 year inverted yield curve

Posted on 4/22/24 at 12:54 pm to
Posted by Tomatocantender
Boot
Member since Jun 2021
4752 posts
Posted on 4/22/24 at 12:54 pm to
quote:

Big Scrub TX


4 posts in a row? For someone who's been around since 2013, you have absolutely no self-awareness.
Posted by Big Scrub TX
Member since Dec 2013
33403 posts
Posted on 4/22/24 at 1:07 pm to
quote:

4 posts in a row? For someone who's been around since 2013, you have absolutely no self-awareness.
frick off. I'm not aggregating a response to 4 different posters. I'm responding separately.
Posted by Big Scrub TX
Member since Dec 2013
33403 posts
Posted on 4/22/24 at 1:07 pm to
Posted by Tomatocantender
Boot
Member since Jun 2021
4752 posts
Posted on 4/22/24 at 1:30 pm to
quote:

frick off. I'm not aggregating a response to 4 different posters. I'm responding separately.


Like I said, you have zero self-awareness especially in a 2-page Money thread. Thanks for confirming that you do, in fact, have zero self-awareness.
Posted by TigerTatorTots
The Safeshore
Member since Jul 2009
80770 posts
Posted on 4/22/24 at 2:09 pm to
quote:

I'm racking my brains over this. I'm 39. Tempted to put all future 403b/401k contributions for my wife and I into money market/cash starting this week with the anticipation of a hard recession similar to 2007-2009. I would not touch all current investments. Reassess 14-18 months out? Wise or foolish?

So you have 20-25+ year horizon and you are thinking about trying to time this thing? That is beyond crazy. 5 year horizon? I can understand the move. 25 years? No fricking way
Posted by Big Scrub TX
Member since Dec 2013
33403 posts
Posted on 4/22/24 at 2:52 pm to
quote:

Like I said, you have zero self-awareness especially in a 2-page Money thread. Thanks for confirming that you do, in fact, have zero self-awareness.
Oh, I just noticed. You're the "blame it on the POTUS" guy who doesn't like any reason or logic to enter the discussion. Carry on.
Posted by StonewallJack
Member since Apr 2008
685 posts
Posted on 4/22/24 at 3:23 pm to
quote:

It has felt like a recession for 2 years
It has? Please share some details.


Lack of wage growth, stagflation, inflation, rising interest rates

At least construction materials seem to have come down
Posted by Big Scrub TX
Member since Dec 2013
33403 posts
Posted on 4/22/24 at 3:37 pm to
quote:

Lack of wage growth
Wages were up over 4% in 2023. What was inflation for that year?
Posted by XenScott
Pensacola
Member since Oct 2016
3131 posts
Posted on 4/22/24 at 4:05 pm to
quote:

Lack of wage growth, stagflation, inflation, rising interest rates At least construction materials seem to have come down


Panels just went up 20-30%.
Posted by Thundercles
Mars
Member since Sep 2010
5039 posts
Posted on 4/22/24 at 4:10 pm to
quote:

Started to become worried it's all going to come crashing down out of nowhere.



There's two outcomes in the long run:

1 Money isn't real and the national debt doesn't matter so we run it up to a quadrillion and never worry about paying it off, or just print money to pay it off.

2 It all comes crashing catastrophically down and we have an entire generation of suffering.
Posted by fallguy_1978
Best States #50
Member since Feb 2018
48472 posts
Posted on 4/22/24 at 4:31 pm to
quote:

So you have 20-25+ year horizon and you are thinking about trying to time this thing? That is beyond crazy. 5 year horizon? I can understand the move. 25 years? No fricking way

I'm 46 and not at all worried about a big drop. Maybe if I was 62 I'd be less aggressive.
This post was edited on 4/22/24 at 4:32 pm
Posted by Hangit
The Green Swamp
Member since Aug 2014
39108 posts
Posted on 4/22/24 at 6:26 pm to
quote:

46 and not at all worried about a big drop. Maybe if I was 62 I'd be less aggressive.


62-year-old me would tell 46-year-old me to keep stacking stacks, and watching for blue chip-ish that are going to have a high return rate from the dividends.

Strong companies that the market tanking brought their stock price down, making their common dividends now pay 9-10%. Back up that F-150, load up on them, and go long.
Posted by fallguy_1978
Best States #50
Member since Feb 2018
48472 posts
Posted on 4/22/24 at 7:56 pm to
quote:

1 Money isn't real and the national debt doesn't matter so we run it up to a quadrillion and never worry about paying it off, or just print money to pay it off.

This seems to be the path we're taking but a $40 gallon of milk will bring the house of cards down eventually.
Posted by skewbs
Member since Apr 2008
2002 posts
Posted on 4/22/24 at 10:06 pm to
quote:


I'm racking my brains over this. I'm 39. Tempted to put all future 403b/401k contributions for my wife and I into money market/cash starting this week with the anticipation of a hard recession similar to 2007-2009. I would not touch all current investments. Reassess 14-18 months out? Wise or foolish?


When stock prices drop, they are on sale. Why on earth would you want to miss out on cheaper prices?
Posted by geauxpurple
New Orleans
Member since Jul 2014
12309 posts
Posted on 4/23/24 at 2:38 pm to
Economists have predicted 12 of the last 6 recessions.
Posted by SlidellCajun
Slidell la
Member since May 2019
10396 posts
Posted on 4/23/24 at 7:50 pm to
It’s going to go slower than that

We’re going to see more fighting over benefits to the funded programs like social security and Medicare as the debt payment becomes a bigger issue.

Once we start seeing some cutting back on these programs, we’ll see some political will to make the hard decisions.

Posted by Saunson69
Member since May 2023
1805 posts
Posted on 4/23/24 at 8:24 pm to
I hope there is another recession. Real estate prices are wayyyy overinflated. I'll just pull out all my money in stocks. My company at my job has plenty money to continue on. My 401k will take a hit but it'll rebound. I'll buy a house if/when it happens and give a big middle finger to all these greedy people and real estate agents letting them know that "No you're 1500 sq ft house isn't worth remotely $500k, more like $200k"
Posted by Saunson69
Member since May 2023
1805 posts
Posted on 4/23/24 at 8:27 pm to
quote:

When stock prices drop, they are on sale. Why on earth would you want to miss out on cheaper prices?



Do you not understand that if he keeps his money in those 401k, that it'll drop that amount. It's basically like saying if someone is holding onto NVDA at $1,000, and it's predicted to go to $500, saying why would you want to sell it when you can buy at $500. Doesn't make sense, he's already invested. If he holds, it too drops 50%. What should he do? Hold until it drops 50%? The wise move is what he is suggesting would be to sell now and buy back at low. You can't buy anything if you're money is already tied up in a tanking stock market
This post was edited on 4/23/24 at 8:29 pm
Posted by SlidellCajun
Slidell la
Member since May 2019
10396 posts
Posted on 4/23/24 at 8:28 pm to
quote:

I'll buy a house if/when it happens and give a big middle finger to all these greedy people and real estate agents letting them know that "No you're 1500 sq ft house isn't worth remotely $500k, more like $200k"



I have a strong feeling that this won’t happen.

As rates decrease, prices are going to escalate as more money is available to buy and sellers loosen up to the notion of moving without giving up that low mortgage.

I think now might just be the low in the real estate market for a good while
Posted by Saunson69
Member since May 2023
1805 posts
Posted on 4/23/24 at 8:33 pm to
The low lol? You're not looking at the big picture. The fact that majority of Americans can't afford housing and markets will always adjust to where a large percentage can. I'm positive a correction will happen within next 2-3 years. No shot it doesn't tank based on prior housing price to inflation/median income of US households. Would not be surprised to see even up to a 30% correction. It's at its peak now and every single time it has done this in the past, it drops significantly. It'd be hard to view that link and believe that it will not drop by a pretty large margin.

The other thing is that housing prices were at inflation increases from 1950 to 2000. Since 2000, it's way outpaced inflation. You see on the link a large correction in 2008, we are the peak today. It could even be worse than a 2008 correction. It may get back in line with 1950 through 2000 rates.

https://www.longtermtrends.net/home-price-vs-inflation/



This post was edited on 4/23/24 at 8:45 pm
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