So the markets had finally calmed down. In fact they were up 1200 points. Then in their presser today, they come out and start talking tariffs on China again. And of course, the traders panicked again. And the market dropped like a rock. Use a little common-sense folks. If the market is recovering LET IT RECOVER! Talk about tariffs again next month. Give it a rest!
Meh.
There’s all kinds of gains to be had from trump’s moves here.
4 Likes
A major stock market drop is part of the plan. They told you this would happen before the election.
If (and I’m giving Trump the benefit of the doubt because some of his advisors probably think this way) part of the plan is to force the Fed to lower rates so they can refinance/reissue the $9.2 T in debt that matures this year, they need at least an economic slowdown…a recession would be even better.
Ridiculous tariff rates like 104% on China will help accomplish that.
Tariffs do spike prices initially, but over time they are deflationary, not inflationary (we are seeing that with oil futures. Our supply capacity hasn’t changed at all, but the price of oil is dropping rapidly. That’s deflation at work, not new supply appearing).
But personally again, I think Trump enjoys the power to declare winners and losers, which was always one issue with tariffs throughout US history. Leaders would often use them to reward those they liked and punish those they didn’t.
1 Like
Is that you 1%er??
I’m not sure what you mean. Only 1%ers should be concerned about the stock market?
The stock markets absolutely positively should not be
the decoding facto in this.
“Oooh here is a policy that is good/bad for America but the market might go down the day I announce it so . . . I’d better not.”
The market were overpriced, they still all over priced.
They are still at the stock market version of paying $2,5 for a banana taped to a wall.
People aged 50 and 60 and 70 still have their money in stocks
man of them in tech stock with little or no earnings.
I used this on another thread (so we can ignore the arrows here)
but umm pension funds and mutual funds are a third of the market.
Households (including the 1-percenters)are only 35%
What share of that 35% do you think the 1-percenters own?
The 1%ers will be just fine.
They sold at the peak and will be ready to snap up the bargains once Trump decides to stop battering the economy.
It’s those who want to retire now that will have a tough time, considering it’s so confusing no one knows what really to invest in.
Can’t even count on fixed return securities as Trump may be trying to force interest rates down.
He’s more interested in Main Street than Wall Street.
Rightly so.
2 Likes
For decades “those who want to retire now” should invest 40-60% in bonds and the rest in safe non-growing dividend stocks.
That has not changed.
What has changed is that people who just made big bucks in the real estate market got overly confident and decided to bet their life savings in ways no other generation ever has.
“It is my right to make a clear safe foreseeable profit doing this risky thing no other generation in history ever has,” is a piss-poor retirement plan.
Unfortunately, the 10-year treasury is soaring, causing my bonds to nose-dive. A double whammy for my portfolio. My losses are now well into the six figures. Still doesn’t begin to affect me, but I don’t like it none-the-less.
You “invested” in 10-year treasuries but did not plan on keeping them 10 years? (More to follow I just want to confirm this first.)
About 35% of working Americans choose to invest a portion of their pay checks into a 401(k) retirement account.
35 percent seems like more than 1 percent. I have a 401(k), a brokerage account, and an IRA, and I’m nowhere near the 1 percent.
1 Like
No. My observation is that when the 10-year treasury goes up, many of my bond funds go down.
If you buy a 10-year treasury (actually a treasury of any length) and hold it to maturity, you get 100% of your principle back and 100% of your promised interest. That never changes.
What DOES change is the “cash-it-out-early, sell-it-now” price.
Buying a bond with plans to sell it early = speculating (just like speculating in stocks.)
I get what you’re saying.
However, in this current environment, even “safe” investments aren’t safe.
1 Like
My portfolio includes a variety of different bond funds. I have no idea how any of that works.
You can invest in the bonds themselves as opposed to the funds.
Or invest in fixed rate or target maturity bond funds.
Gaius is right on the one point. If you buy a bond and hold it to maturity, your bond pays out the promised interest.
The bond funds are going down because the fund managers aren’t holding bonds to maturity…they are buying and selling them like any other security.
