That’s going to screw the increasing number of people using their credit card to make it between paychecks.
Article says Fed members agree they’ll cut rates a whole percentage point in 2024, but that is impossible to commit to or even predict.
We’re currently paying for almost 20 years of reckless government policy, between the perverse incentives causing the housing loan scandals and the subsequent 12 years of interest rate suppression.
There’s no way to know how long it will take to normalize. This could turn into the late 1970s/early 1980s.
I heard the Powell press conference and he outlined what they want to do in February but it’s completely dependent on CPI, PPI, and employment numbers. Anybody who says they know what the Fed will do is full of shit.
The market proved that yesterday, up smartly before the announcement and sliding into the basement afterwards, and into the subbasement today.
It’s getting tough to predict what might happen 3+ months out with inflation. Supply demand is still out of balance and I don’t see much improvement on the supply side. The fed is trying to cut the demand side of the equation. At the same time, the congress is continuing to spend spend spend which is keeping the demand high.
I recently read an article about Ernest Young (EY) is freezing all their bonuses due to uncertain economic conditions even though they have just recognized record results. To me this is a decent window to the future. A global audit and consulting firm like EY has partners that sit in on board of directors meetings and they are consulted with some of the most confidential and significant factors that companies are currently facing. They have inside information about thousands of companies as their audit staff are currently onsite at the companies preparing interim audit procedures.
@kcflyer has been clamoring for higher rates for his CDs so he should be stoked. Of course those will actually pay negative inflation adjusted rates…but he won’t know that.
I am not worried about inflation. YOu are damned right that I want something safer than the casino that is Wall Street stocks for my retirement. But you know…inflation is up and…how did that stock market do today? I know that my CD I just bought is still worth it’s full value. But those stocks aren’t doing much to help those folks tackle inflation. But help me…if a guy has a hundred thousand in a CD and another guy has a hundred thousand that just lost 3% of it’s value today, is the guy with the stocks protected against inflation?
Not until a Republican gets into the White House.
Wall Street is more secure that your Social Security.
Correct.
Wall Street pays big money to rig the game. Consumer-grade citizens pay nothing & stand in line to vote for their favorite Santa Claus snake oil salesmen. One of these two groups is full of naive suckers.
Now, to be technical, KC’s nominal SS payment amounts are likely secure enough, unlikely to go down. But they’re also unlikely to go up enough to keep up with inflation.
My main point was that if any of us had put our SS contributions into any type of investment, they would be exponentially bigger than they are now.
Same point, different wording.
Politicians help the rich steal from the poor. And they do it through laws, codes, regulations, civil asset forfeiture, and fractional reserve banking.
This scam is as old as time. The ancient Romans did all the same stuff. Greeks & Egyptians too. And the far east. You name it.
Doesn’t mean we should have no government, but the citizens should know the game they are in and wake up. I see scant grounds for optimism there.
Did the guy with the stocks sell? Anybody can take a snapshot of time and say this or that. You have to know your goals as they relate to your time horizon.
I’ve been in mutual funds outside employer plans (I took advantage of those also) since I was 23, just under 40 years, 30 of those somewhat aggressive… there is no comparison to what I would have done with fixed income instruments. Not even close.
I dunno. I’m 5 years from being 70 and you know what sucks…watching your money grow and grow over that 5 years and then…two weeks before retirement, a camel farts in the desert and EVERYTHING drops. That’s my time horizon. You can grow it like crazy, but you can lose a SHITLOAD in a day.
You know what sucks even worse?
Seeing how much money you have contributed to Social Security and then seeing how little they will pay you back.
ANd you don’t know how I did from 20 to 60…but at 60, I’d rather not put it in the stock market. Sure, I won’t get the returns, but since could afford to take a loss (dollar cost averaging) one year and buy it back over the next 5 or 10 years, I’m not so risky in my 60’s. And FWIW - I don’t need to touch the money in my IRA for 7 more years…but I want to make sure I’ve got something to withdraw when I have to take my RMD
Theres nothing wrong with locking in an automatic 5 or 6%. And im okay buying stocks back at the june lows, im up a little but not looking too closely. Dont really care because ill only need this new money i put to work if i take a spendy 30 year old as a wife. So in this case, KC and i are both right
Risk tolerance is individual and it sounds like you have done a great job establishing yours but I get the impression that you think others must wear the shoe that fits you when you say…
Wall Street can be a casino if you don’t pick good businesses to invest in but on average its not a casino… crypto is a good example of a casino.
I am older than you and am at about 45% stocks, 55% bonds and fixed. I don’t see a time when I will be below 40% stocks.