Took 70% of my cash and put it into the stock market

DoubleAtotheRON

DoubleAtotheRON

Well-Known Member
Meast21 said:
@DoubleAtotheRON
So where is the market headed?
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Im def no expert, but I see the Energy sector staying strong/steady growth. Pharma stocks are going to rise as we go into Flu season this Fall/Winter. Tech Sector is all over the map. Kinda wished I would have played the rollercoaster ride on BABA. I don't even pay attention to Crypto. It's been kinda of a weird year or so. We didn't really go into a Bear Market, but it was Bearish. The good news long term is that Bearish Markets don't last nearly as long as Bull Markets... even tho we just had the longest Bull run in history up until around 2021. But, if history repeats itself (and it usually does), then long term, we'll see the Dow exceed the 37,000 mark in the next 2 years as the feds settle down and start thier target drop to around 2%. ... we shall see.
 
M

Meast21

Well-Known Member
DoubleAtotheRON said:
Im def no expert, but I see the Energy sector staying strong/steady growth. Pharma stocks are going to rise as we go into Flu season this Fall/Winter. Tech Sector is all over the map. Kinda wished I would have played the rollercoaster ride on BABA. I don't even pay attention to Crypto. It's been kinda of a weird year or so. We didn't really go into a Bear Market, but it was Bearish. The good news long term is that Bearish Markets don't last nearly as long as Bull Markets... even tho we just had the longest Bull run in history up until around 2021. But, if history repeats itself (and it usually does), then long term, we'll see the Dow exceed the 37,000 mark in the next 2 years as the feds settle down and start thier target drop to around 2%. ... we shall see.
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So you don't see the SP500 getting below 3600 anytime soon?
 
DoubleAtotheRON

DoubleAtotheRON

Well-Known Member
Meast21 said:
So you don't see the SP500 getting below 3600 anytime soon?
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Although it HAS dropped below that in the past 12 months, it's still trending up (almost 20%) over the past year.... The top 3 companies that comprise the S&P are strong, and take up almost 50% of the whole index which include sectors of Information Tech, Healthcare, and Financials. The dip happened right about the time the Feds posted thier 4th rate hike of .75 bias points back in Sept. So, I think this was the catalyst that brought it down temporarily. So, looking forward, the last Fed reserve meeting did not raise or lower the Fed reserve rate. Which is good. They are seeing a cooling on inflation. Thier plan is to monitor this "cooling off", and ideally start lowering it back down. So, hopefully, we'll still see growth in the S&P in the future.
 
M

Meast21

Well-Known Member
DoubleAtotheRON said:
Although it HAS dropped below that in the past 12 months, it's still trending up (almost 20%) over the past year.... The top 3 companies that comprise the S&P are strong, and take up almost 50% of the whole index which include sectors of Information Tech, Healthcare, and Financials. The dip happened right about the time the Feds posted thier 4th rate hike of .75 bias points back in Sept. So, I think this was the catalyst that brought it down temporarily. So, looking forward, the last Fed reserve meeting did not raise or lower the Fed reserve rate. Which is good. They are seeing a cooling on inflation. Thier plan is to monitor this "cooling off", and ideally start lowering it back down. So, hopefully, we'll still see growth in the S&P in the future.
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How much higher can this market go?
 
Hobbes

Hobbes

Well-Known Member
How's DJT doing? I haven't been able to follow the markets because of work, the shorts are going to be hammering on ole donnie's stock.
 
S

smokerjimbob

Well-Known Member
I have very little cash holdings. Just enough to pay for any emergencies should they happen. Since 2019 I have seen the US dollar get decimated. I have most of my money in either SLV or ethereum. Even stocks are better than cash but things are too toppy right now. What I do know is that the dollar is on a path to $10 per gallon.
 
M

Meast21

Well-Known Member
smokerjimbob said:
I have very little cash holdings. Just enough to pay for any emergencies should they happen. Since 2019 I have seen the US dollar get decimated. I have most of my money in either SLV or ethereum. Even stocks are better than cash but things are too toppy right now. What I do know is that the dollar is on a path to $10 per gallon.
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What does the dollar is on a path to $10 per gallon mean??
 
Sunbiz

Sunbiz

Member
Meast21 said:
What does the dollar is on a path to $10 per gallon mean??
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Inflation, as the USD is used by many other countries to trade for energy.
The best investments currently are commodities, gold, silver, copper; and even food have out-performed paper markets over the past 2 years.
 
S

smokerjimbob

Well-Known Member
Meast21 said:
What does the dollar is on a path to $10 per gallon mean??
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It means you'll be poorer because your wage will go up far less than the price of things. Like a gallon of a gas and a big mac meal. Look at price of gas per gallong.

$1 dollar during Clinton, $2 dollar during Bush, $3 dollar during Trump, almost $6 during Biden. It won't take much for gas to hit $10 and i'm sure it will happen sooner than later.

This effect has been going on strong since the late 70s with congressional free trade deals, other economic arrangements where labor is offshored, and caps to minimum wage, union busting, and other methods to wrestle away bargaining/economic power away from the average worker and into the hands of shareholders, CEOs and the wealthy.
 
Sunbiz

Sunbiz

Member
smokerjimbob said:
It means you'll be poorer because your wage will go up far less than the price of things. Like a gallon of a gas and a big mac meal. Look at price of gas per gallong.

$1 dollar during Clinton, $2 dollar during Bush, $3 dollar during Trump, almost $6 during Biden. It won't take much for gas to hit $10 and i'm sure it will happen sooner than later.

This effect has been going on strong since the late 70s with congressional free trade deals, other economic arrangements where labor is offshored, and caps to minimum wage, union busting, and other methods to wrestle away bargaining/economic power away from the average worker and into the hands of shareholders, CEOs and the wealthy.
Click to expand...
It began the minute Nixon took us off the gold standard, which previously forced government to live within a budget.
And inflation is a tax, a tax created by the government so they can spend spend spend...and print print print.
It is so unsustainable, even Saudi Arabia has abandoned trading in dollars for their oil.
They'll somehow manage to hold the markets together until the holidays, after all; it's an election year.
Paper markets are also inflated, as investors are chasing yields; trying to keep up with the inflation.
While wages have not kept pace with the inflation rate, irresponsible government spending is at the root of the current issue.
Reverting back to the OP topic, I would personally not be sleeping very well; if I had a load of cash tied up in the "stock market".
Seriously, the average consumer right now is better off buying a years worth of food ahead of time; as in a year it will cost 20% more.
And I guarantee the stock market will not be going up 20% in 12 months.
Silver right now is great option, still very undervalued; and affordable for almost everyone.
Gold has gone up b/c all the BRICS nations are gobbling it up, to back their own currency; like we used to.
As the US dollar is now only backed by the US military, and the Federal Reserve is not Federal(private)and has zero reserves.
Even FICA is out of money, when a bank fails; they just print it over with greenbacks.
 
M

Meast21

Well-Known Member
smokerjimbob said:
It means you'll be poorer because your wage will go up far less than the price of things. Like a gallon of a gas and a big mac meal. Look at price of gas per gallong.

$1 dollar during Clinton, $2 dollar during Bush, $3 dollar during Trump, almost $6 during Biden. It won't take much for gas to hit $10 and i'm sure it will happen sooner than later.

This effect has been going on strong since the late 70s with congressional free trade deals, other economic arrangements where labor is offshored, and caps to minimum wage, union busting, and other methods to wrestle away bargaining/economic power away from the average worker and into the hands of shareholders, CEOs and the wealthy.
Click to expand...
The stock market is so over inflated IMO... Where do you see it going and when? They want Biden to win so I don't see any fall in the next 5 months.
 
S

smokerjimbob

Well-Known Member
Sunbiz said:
It began the minute Nixon took us off the gold standard, which previously forced government to live within a budget.
And inflation is a tax, a tax created by the government so they can spend spend spend...and print print print.
It is so unsustainable, even Saudi Arabia has abandoned trading in dollars for their oil.
They'll somehow manage to hold the markets together until the holidays, after all; it's an election year.
Paper markets are also inflated, as investors are chasing yields; trying to keep up with the inflation.
While wages have not kept pace with the inflation rate, irresponsible government spending is at the root of the current issue.
Reverting back to the OP topic, I would personally not be sleeping very well; if I had a load of cash tied up in the "stock market".
Seriously, the average consumer right now is better off buying a years worth of food ahead of time; as in a year it will cost 20% more.
And I guarantee the stock market will not be going up 20% in 12 months.
Silver right now is great option, still very undervalued; and affordable for almost everyone.
Gold has gone up b/c all the BRICS nations are gobbling it up, to back their own currency; like we used to.
As the US dollar is now only backed by the US military, and the Federal Reserve is not Federal(private)and has zero reserves.
Even FICA is out of money, when a bank fails; they just print it over with greenbacks.
Click to expand...
Agreed with all you said. The world is slowly converting to other currencies besides just the dollar. Although the dollar is still king there could be a time when some major countries refuse to trade in dollars. When and if this happens anything in dollars will be a bad choice. Although stocks are in dollars at least they still go up with inflation in price. So always better to have money in stocks than cash as long as markets remain stable. However de-dollarization is a growing theme throughout the world and it's important to prepare for this event.

I'm not an economist by any means but I do know that the government has to print money to pay off just the interest that collects on outstanding debt. Like you said inflation is a populist choice and used by governments to stimulate economies and get people excited about things like wage raises. Problem is the US capitalist model benefits most shareholders and the upper management and these people are most excited about raising prices and lowering product price inputs, ie wages.
 
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