I guess if you work at the dollar store. it's pretty safe during recessions
CNN: Dow falls 460 points as US recession indicator flashes red
- Thread starter Slayven
- Start date
Well poors have been fucked since forever but i get your meaning and agree. I'd add that 08 pretty much exterminated what was left of the middle class as well.
Well, first off that's a horrible way to view debt.
People own houses and pay mortgages, they have hundreds of thousands in "debt". People can get degrees which put them in the mid to high five figure range of student debt, but can get into fields that will greatly increase their life time earnings vs. not going to college.
There are lots of good debts, just like there are bad debts. Even having money on a credit card is considered debt. As long as you pay it off during your monthly statement, it's good debt as it doesn't cost you anything extra, likely lands you rewards and increases your overall credit score to get better deals for higher cost loans like one for a house or car.
Come trade crypto, where you get to trade after a complete market collapse!
Needs to be said again. The last recession was historically bad, rivaling the Great Depression. Recessions are part of the economic cycle, clearly they're not good but unlimited growth is a myth
These types of stories really make you think about how Trump is going to handle a recession:
the article is worth reading. but the gist is that this guy is a complete buffoon and completely unqualified to have a hand in directing monetary policy.
and from CNBC:
http://nymag.com/intelligencer/2019/03/stephen-moore-federal-reserve-trump.html
the article is worth reading. but the gist is that this guy is a complete buffoon and completely unqualified to have a hand in directing monetary policy.
and from CNBC:
lol
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Part of it is that some companies, especially those controlled by private equity, are essentially are loading up on debt today, often to make purchases of competitors, in hopes that by creating a oligopoly or near-monopoly, profits will rise and they can use those future greater profits to pay down the interest on their debt.
In the start-up world, a lot of it is just capital churn for companies like Uber and Tesla with the end result being "Hey, we need to spend money now to make a shit ton of money later." That's true of most businesses (capital costs at the start are often the biggest hurdle to overcome), but its also why most businesses fail without a clear path forward.
If how much money you make is predicated on how much money you spend, leveraging debt can make you more money.
Even most small (sole trader) successful companies have debt. Business loans are a thing and are a great way to finance business purchases or setup new businesses. In investment in general, leveraging allows you to make much larger returns than otherwise is possible. As long as a business has the ability to meet its repayment obligations without it making up too much of the profit, it's not a bad thing.
Personal/household debt is not the same as corporate debt.
When you go into debt it's to buy something you want but can't afford entirely right now.
When a corporation goes into debt it's because they think they will make more in the long run. It doesn't always work out of course.
When you go into debt it's to buy something you want but can't afford entirely right now.
When a corporation goes into debt it's because they think they will make more in the long run. It doesn't always work out of course.
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well three main sources of debt: car loans, homes, and education are assets that are either necessary to live (as in homes) or to generate more future income. hard to see either of those things associated w/ failure.
I think he means buying a McMansion or a luxury vehicle when your salary can't support those purchases.
Both he and Art Laffer were responsible with crafting tax policy in Kansas that took a 300 million dollar surplus and turned it into a 700 million dollar deficit in four short years. It resulted in education cuts that had some kids going to school only 4 days a week.
We know enough to make an estimate. Demotivate yourself at your own peril.
I'll continue holding before buying a house.
No, you don't. There are people that have been claiming we're on the cusp a recession for the past five years. Eventually like a broken clock they'll be right but they can't claim they called it correctly.
Additionally, you have to get two things right and the only way you do either is by sheer dumb luck. A) When to get out. B) When to get back in.
There are people out there that yanked all their money out at the bottom of the last recession and are still sitting there even today wondering when to get back in.
You're best off creating a portfolio you're comfortable with no matter what the markets are doing. This means figuring out your risk tolerance and sticking to a mix of stocks and bonds that you can live with in good times and bad.
S&P 500 posts best three-month start to the year since 1998
https://finance.yahoo.com/news/stock-market-news-march-29-2019-124211144.html
https://finance.yahoo.com/news/stock-market-news-march-29-2019-124211144.html
They never disappoint, do they
Yup, Republicans create recessions and Democrats clean it up.
I hope that doesn't happen.... took me an extra 5 years to get going during the great recession.
...due to volatility. There was on oversell late last year that caused this. Volatility due to investor panic is not a good thing, when there is volatility after economic progress, the rebounds from dips prior to a recession will always break records. Look up the wild swings in 2008 before the recession, those broke records too. Volatility + global PMI dipping below 50 means a recession is extremely likely to occur.
The trade wars are creating malinvestment and volatility. The sooner we get a correction, the better, especially considering it happening now would give Trump the boot and we'd cease trade wars.
The global PMI among advanced economies for manufacturing is below 50, that usually leads. Other areas are still positive. Bad policy overtime will peg manufacturing and drag down other sectors.
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I was curious: I'm about to sell my company stock at my job because I think we might get a recession later this year or next. After selling the stock, what's the smartest thing to do with it? I obviously want to keep what I put in, but if I think I can weather the recession without too much trouble, what is the smart move?
And the 4 day school week showed to be a success for the wellbeing and success of students, the Chamber of Commerce started shitting their pants and wanted it to be illegal. Likely seeing it as a slippery slope to a 4 day work week.
Nah.. time to buy stocks to be honest.
I'm ready to ride this wave.
Anyone with an annuity is getting completely fucking ripped off. I say that as someone that worked in the insurance industry for 20 years. You don't get anywhere near the return of the S&P in an indexed annuity. The clowns pitching these things talk about how they limit your downside risk, which is true. What they don't talk about is they also cap your returns. The S&P 500 could go up 20% (like it almost did in 2017) and guess what? You're capped at 7% or less. Add in the enormous fees and they're an incredibly stupid thing to put your money in.
Also, the stock market tanked going into 2019 from October until December so we're all just recovering from that.
You should get out of your company's stock. Both your job and your investments are tied into one company which is far too dangerous - ask the people who did this at Enron and lost their jobs and every bit of money they had invested as well. It's far too dangerous to invest in individual stocks anyway. That's pure speculation, not investing.
You don't know when the next recession will be, how long it will last, or anything else. Neither do any of the braying jackasses on CNBC or any other financial news. Or anyone else for that matter.
You're best off taking the money out of the company stock and investing it in a globally diversified fund at the lowest expense you can get. Put some money in bonds if you think you'll freak out when the next recession hits and take money out, or if you're older. VTWAX charges more than my investments but it's still not bad at 0.1% and if gives you exposure to something like 7,000 publicly traded companies around the world. Leave it alone until you start taking money out in retirement.
Any combination of healthcare, IT, and dev are pretty good.
If by "weather the recession" you mean make a profit off it, that's one thing (and many people far more experienced than us will fail trying the same thing). If you mean come out the other side with all your money in tact then the smart move is to leave your money exactly where it is.
That means you're getting a better deal. If you're buying to hold onto for 30+ years, it's better to buy while it's dropping than while it's rising. Only worry when you start cashing out of your 401k.
These are the kinds of thoughts you keep to yourself. People in this very thread are invested and you are rooting from them to lose money and perhaps suffer hardships. It's dickish at the very least.
And of course I just closed on a house at the peak. I don't think housing will get hit as hard again though. Mortgage is cheap enough either way and even with a crash it will recover even if it may take 5-10 years.
Buying a house right now also, was talking to a contractor recently and he was telling me that 2008 really did jack shit to prices in our market. It just stablized them for a year or so before they started going back up.
Yeah the market is up 10% over the last 12 months. This was a stupid clickbaity article.
rather than sit it out, just buy more when the market is down. If you have the cash.
It's going to be real ugly when it hits.
Trump is not mentally sound enough to understand the mind games of a recession, he will do so much more harm than good.
Yes, fuck everyone once I get mine. These kinds of post are disgusting.
