- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Everyone seems to be talking about a recession.
Posted on 8/15/19 at 1:31 am
Posted on 8/15/19 at 1:31 am
I'm no money board expert and I have a lot of cash to burn.
Explain to me the pros and cons if it comes to pass.
A quick Google search suggests real estate,but I would prefer some real world experience.
What happens to interest rates? What other areas are greatly effected?
Is the recession talk just bullshite? I kind of feel that if you have cash on hand you can take advantage when the economy goes one way or the other, I'm just curious how to take advantage. Thanks in advance.
Explain to me the pros and cons if it comes to pass.
A quick Google search suggests real estate,but I would prefer some real world experience.
What happens to interest rates? What other areas are greatly effected?
Is the recession talk just bullshite? I kind of feel that if you have cash on hand you can take advantage when the economy goes one way or the other, I'm just curious how to take advantage. Thanks in advance.
5
Posted on 8/15/19 at 3:11 am to Ham Solo
quote:
Everyone seems to be talking about a recession.
Only idiots with an agenda
If a 3% loss in the Dow makes you clutch your pearls then the stock market is not the game for you.
As too your question just pick your favorite dividend paying large cap and hold it, I like utilities when they are down and DUK may look good if it drops a bit more.
Posted on 8/15/19 at 3:37 am to cave canem
quote:
I like utilities when they are down and DUK may look good if it drops a bit more.
If you can, break this down to me in layman terms. My wife and I have gone from 50k to 500k in a couple years thanks to promotions and bonuses. It's currently doing little for us, mostly from paralysis by analysis. Too many options and not enough knowledge.
I live in Bentonville Ar, which is one of the hottest real estate markets in the country. People say it's about 15 years behind Austin Texas. I feel like this is worth mentioning for people here to give proper advice.
ETA
Only debt is 120k left on our house. Pay off or not? Sorry if these are stupid questions, but it just kind of escalated quicker than I prepared for it.
This post was edited on 8/15/19 at 3:45 am
Posted on 8/15/19 at 5:06 am to Ham Solo
quote:
Only debt is 120k left on our house. Pay off or not?
Easiest free guaranteed returns on earth are not paying interest, the piece of mind is simply a bonus.
Lots of folks argue against it because the THINK they will do better in the market but that is not a certain thing IMHO.
Posted on 8/15/19 at 5:55 am to Ham Solo
quote:All these decisions boil down to numbers and risk. But even given identical situations various folks will come to different conclusions. E.g., cavecanem suggests paying off your mortgage. Dave Ramsey would suggest the same. But interest deductible mortgage notes at 3.5% are cheap money. It all depends on what you'd do with the $120K.
Only debt is 120k left on our house. Pay off or not?
Find a financial planner, go over things. Given facts, you'll see your way to a conclusion.
Posted on 8/15/19 at 7:10 am to Ham Solo
Sounds like you need to sit down with a professional
Posted on 8/15/19 at 7:41 am to cave canem
quote:
If a 3% loss in the Dow makes you clutch your pearls then the stock market is not the game for you.
While this is true, there are other indicators economists are pointing to that are sounding the alarm. The stock market is mostly reacting to those indicators and warnings.
Posted on 8/15/19 at 7:50 am to Ham Solo
quote:
Only debt is 120k left on our house. Pay off or not?
I say pay it off. No debt peace of mind is great and you could put your old monthly mortgage payments into some sort of savings/investing device.
You'll also probably be more determined to make up that $120,000 (although was never "lost") which should create positive future spending/saving/investing habits.
Either way sounds like you're in good shape. Congrats!
Posted on 8/15/19 at 9:31 am to Ham Solo
I mean you can always invest half in something that is gonna generate income like preferred stock. You need to lay out your goals. Do you want to deal with property? Are you going to be a landlord or pay someone to manage it. Do you want to truly dive into the real estate business or do you just want to be an investor. Maybe you could open Qdoba in Starkvegas. I'll eat there and support it.
Talk to a pro
It isn't a bad thing to have a little cash on hand to take advantage of an opportunity, but you also want something now that is gonna generate cashflow you just don't have to put all your chips in.
Talk to a pro
It isn't a bad thing to have a little cash on hand to take advantage of an opportunity, but you also want something now that is gonna generate cashflow you just don't have to put all your chips in.
Posted on 8/15/19 at 10:08 am to Ham Solo
The recession talk is not BS. If there was nothing else going on, this is still the longest expansion in history so reversion to the mean will eventually happen.
However, there is a ton that points to it... Between a decade of low interest rates, QE, highest deficits in history, tax cuts, etc and we still don't have consistent 3% growth, cracks are showing. The Fed is cutting rates again, the Prez is on twitter begging for QE, and we have a trade war with the 2nd biggest economy going on. This is a real possibility.
My advice would be to study up. Decide if you really want to do real estate, it's not as easy as it sounds, but if it's your thing, do it. If a recession does hit, you'll likely find some decent deals if the area has a decrease in prices because of loan defaults, etc. If you decide to invest in the market, study up. The market takes the escalator up, but the elevator down. Many on this board will say set it and forget it. I don't believe now is the time for that.
Sounds like you could probably pay that mortgage off and then have even MORE money to squirrel away monthly while you're learning and deciding what you should do next.
However, there is a ton that points to it... Between a decade of low interest rates, QE, highest deficits in history, tax cuts, etc and we still don't have consistent 3% growth, cracks are showing. The Fed is cutting rates again, the Prez is on twitter begging for QE, and we have a trade war with the 2nd biggest economy going on. This is a real possibility.
My advice would be to study up. Decide if you really want to do real estate, it's not as easy as it sounds, but if it's your thing, do it. If a recession does hit, you'll likely find some decent deals if the area has a decrease in prices because of loan defaults, etc. If you decide to invest in the market, study up. The market takes the escalator up, but the elevator down. Many on this board will say set it and forget it. I don't believe now is the time for that.
Sounds like you could probably pay that mortgage off and then have even MORE money to squirrel away monthly while you're learning and deciding what you should do next.
Posted on 8/15/19 at 10:23 am to Ham Solo
You make 500k... pay that mortgage off and be done with the nuisance.
Posted on 8/15/19 at 10:44 am to cave canem
quote:
Only idiots with an agenda
I wouldn't be so sure. I had dinner with some hedge fund managers in DC and they are betting bigly against the economy.
Posted on 8/15/19 at 10:52 am to boogiewoogie1978
quote:
I wouldn't be so sure. I had dinner with some hedge fund managers in DC and they are betting bigly against the economy.
Well, that settles that.
Posted on 8/15/19 at 11:20 am to Ham Solo
quote:
My wife and I have gone from 50k to 500k in a couple years thanks to promotions and bonuses
Damn. Did y'all go from resident docs to private practice?
This economy has had a long, hot run and a slowdown is going to happen (it may be happening already).
A recession, i.e. economic contraction, is a possibility, and it's more of a concern now than it has in the last 9-10 years. I'd say chances of a quarter of negative GDP sometime in next 3 years is 50/50.
But slowdowns can hurt too.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News