Stock Market Down. How is This a Good Thing?

a reply to: TheRedneck

I hope this ends up with a new gold backed dollar and an end to the fed. The stock market, while seeing huge losses, is still way up when viewed over the past several years

a reply to: AnonymousMoose

Maybe I'm wrong, but I think the stock market has dropped as far as it's going to, maybe a little more. But I wouldn't be surprised if you don't see it start to recover this week.

a Down Market is Good, so I can continue to Buy the stocks that were way too overpriced to buy before

I have a certain stock which began Trading at ~$26.50 but because of the Fed. balance sheet activity, had risen to an overprice level of $31.++

once at the end of 2019 I was able to buy more shares at a great price if $24.66 - otherwise the stock is way overpriced and not worthy of accumulating for a 2% dividend at a 40% overpaid cost to buy (it would take years of dividends to break even on any Return-on-Investment)

god-bless, buy-on-dips



yes, reader, stock markets are all-about the 'me' … each person individually

originally posted by: PublicOpinion
And I thought we were talking about the stock market? The one place that produces nothing but QE?

Sounds like the very stable genius God emperor wants to make quantitative easing look like a joke, he said we need to be a leader in having low rates like Japan who has a negative rate. Nothing like the government loaning money at a loss to prop up the stock market. Bigly winning if that happens.

originally posted by: AugustusMasonicus

originally posted by: PublicOpinion
And I thought we were talking about the stock market? The one place that produces nothing but QE?

Sounds like the very stable genius God emperor wants to make quantitative easing look like a joke, he said we need to be a leader in having low rates like Japan who has a negative rate. Nothing like the government loaning money at a loss to prop up the stock market. Bigly winning if that happens.

I think his issue is that rates were kept so low during the Obama years to make his economy look good but Trump isn't supposed to enjoy the same thing? He sees that as unfair somehow. Not that I agree with him, the rates have to go back up sometime.

originally posted by: face23785
I think his issue is that rates were kept so low during the Obama years to make his economy look good but Trump isn't supposed to enjoy the same thing?

The rates have been historically low for way too long and the fact that he thinks negative rates are good shows the level of stupid he's at with this.

Doesn’t China also hold most of America’s debt?

All the smart money saw something like this coming & sold before the markets crashed. The FED will lower interest rate to or below zero and/or continue to inject stimulus (inflate money supply/create more debt). These dollars will have to go somewhere eventually, most likely the stock markets and/or real estate, whatever has a better return on investment. If supply chains are halted longterm, manufacturing domestically will increase, which in turn will raise prices on everything which use to come form China (automobile parts, cellphones, TVs, socks/shoes/clothing, prescription drugs, solar panels, batteries, etc.). We're going to have hyperinflation of prices caused by the continued hyperinflation of the money supply (creation of debt). The only reason why the price of gold went down is because of margin calls on stock investments, which forced people to sell their gold to save their leveraged stock portfolios.

The true measure of a country's economic wealth is its resources, which we have an abundance of in the USA, if needed. The problem is the cost of obtaining these resources. Slavery is illegal in the USA, unlike China & Northern Africa, so the cost of obtaining these resources is higher, which in turn will raise prices of goods/services. Hopefully automation will equalize the playing field when it comes to obtaining resources at a reasonable price.

I find it interesting that CO2 emmisions are down considerably because of COVID19 & decreased shipping. Its almost like a jump start to the Democrat Socialist Green New Deal. Just in time for Bernie Sanders to be nominated/elected & the means of production to be taken over by government.

It was no shock to me when I said it would happen to the DAY all the way back in August last year... but hey what do I know...

Great Depression and the collapse of the US to come. 2022 4th July.

originally posted by: Stu112
Doesn’t China also hold most of America’s debt?

No, American citizens do.

a reply to: AugustusMasonicus

Plenty of money being shifted back to bonds and bank products from the stock market.
That means free market low rates for home buyers and real estate developers.
I agree with you, if the FED forced negative rates it might backfire.
So easy to short the stock market instead of going long.

originally posted by: AugustusMasonicus

originally posted by: face23785
I think his issue is that rates were kept so low during the Obama years to make his economy look good but Trump isn't supposed to enjoy the same thing?

The rates have been historically low for way too long and the fact that he thinks negative rates are good shows the level of stupid he's at with this.

Convince the Trump you should be running the Federal reserve..... Unless the Dunning-Kruger effect is the issue.

originally posted by: Slichter
Plenty of money being shifted back to bonds and bank products from the stock market.

Why anyone would shift out of the market into bonds with their horrible yields is beyond me, I would just continue to buy shares of what I already own and dollar cost average the issues as the market will rebound as it always does.

That means free market low rates for home buyers and real estate developers.

Those absurdly low rates are artificially suppressing real estate values.

originally posted by: NoCorruptionAllowed
Convince the Trump you should be running the Federal reserve..... Unless the Dunning-Kruger effect is the issue.

You don't need to have a Harvard MBA to know proposing negative rates is political fodder for imbeciles.

a reply to: AugustusMasonicus

I would just continue to buy shares of what I already own and dollar cost average the issues as the market will rebound as it always does.

They explained that to me at my brokerage, the 3 to 5% dividend you receive gets reinvested quarterly so when the market is low you buy 1 - 2% of your holdings at a discount in bad quarters. As long as you don't need the money for 10 years or more that sounds right. But what if you are a millennial who wants to buy a house? Paying $1200 a month rent costs a lot more than any gain you will make in the stock market from DRIP LOL.

a reply to: Slichter

You can go with non-dividend, high-growth stocks instead. Many of them took a beating and should rebound once this moronic panic subsides.

In my opinion it's a good thing I see the orange full flipping out being he based his presidency on the market so I laugh everytime it falls

originally posted by: Rob420
In my opinion it's a good thing I see the orange full flipping out being he based his presidency on the market so I laugh everytime it falls

Yeah, I know it's hilarious watching peoples pensions and retirement funds taking a beating. All because Trump bad.

a reply to: AugustusMasonicus

If you wanted to gamble FAS went from $68 a share to over $77 today, but you would need to take profits before news of the next recession. House prices are usually lower during and after recessions when dividend yielding stocks are also near their price lows. Home ownership is down near 64% so the younger generations have some catching up to do to reach the 69% of 2005. Stocks are the investment choice of only about 10% of the population and the demographic is ageing rapidly, there is also a lot of dilution from competing instruments like bitcoin and Asian markets along with real estate so we need to watch that trend as well..

Until we are willing to work 12hr shifts daily with 1-2 days off per month and basically no annual leave, we can't compete with SE Asia.

Western culture is inherently lazy by comparison.

That's all there is to it.