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Halls of Shrewd'm / US Policy
No. of Recommendations: 3
QQQ is down 10.7% since Trump took over. Correction territory.
S&P ( SPY ) is down 8.5% since Trump took over. Approaching correction territory.
I am not tempted in any way, shape, or form to put take money out of fixed
income and deploy into the either index. All of this drop is self-inflicted,
shoot yourself in the foot error by Trump, imo.
Does anybody have a target price that they will take money out of fixed income
and deploy it back into the market ??
Old saying goes The Market Hates Uncertainty. Trump's whiplash tariff policy
is definitely an uncertainty. He is quickly losing all credibility, and spooking a lot
of investors out of stocks. And as I said above, all self-inflicted. If he's
this bad when there is no real emergency or crisis, how bad will be during an
actual crisis ?? Covid gave us all a good answer to that question, he was
pretty damned bad.
At least we're not in a 0% interest world, it's easy to get 4.2% pre-inflation
return on fixed income.
No. of Recommendations: 3
We're 3 weeks away from when quarterly statements go out to folks saving for retirement. I wonder how they will feel when they see how much money they have lost. How much will they tighten their spending? How will that impact retailers? Is this the edge of the spiral or can we move back from the event horizon?
No. of Recommendations: 6
"We're 3 weeks away from when quarterly statements go out to folks saving for retirement"
I took calls from 4 different people today, 2 family, 2 friends, each asking what they should
do in their retirement accounts. To say they are nervous is an understatement. None of
them are MAGA.
Things did not have to go down like this, the move fast and break things is gonna bite them
in the butt really bad, unless MAGA gets incredibly lucky.
I shudder to think about what happens when a real catastrophe hits. I remember Hurricane
Katrina and how GWB botched that. And GWB and his team look like logistical geniuses
compared to the Keystone Cops and 3-Stooges that are gonna be called to act when defecation
hits the rotary oscillator on Trump's watch. Covid and can we drink bleach are still pretty
fresh in my mind.
No. of Recommendations: 1
I took calls from 4 different people today, 2 family, 2 friends, each asking what they should
do in their retirement accounts.
Out of curiosity, what did you tell them (in general terms)?
No. of Recommendations: 4
"Out of curiosity, what did you tell them (in general terms)?"
1st thing I told them was I am not a financial expert,lol.
2nd thing was: At Times, You're Not Looking For A Return ON Your Principal,You're Looking For A Return OF Your Principal, lol. And that IMO, this is one of those times.
But I told them of the stock market adage: The Market Hates Uncertainty, which is true.
This volatility is going to continue until the guy in the WH calms down, or Congress
actually starts asserting itself. And I told them that isn't likely to happen until more
pain is felt.
Also told them that while 10% drops are a bit scary, they are fairly common.
Asked them if they had enough in fixed income ( bonds, cd's, treasuries ) so that
they would not need to be selling stocks if things keep falling, and 3 of the 4 did
have a safety portion in FI. My sister did not, so I advised her to get at least
a years worth out of stock, and into short term FI.
Also told them not to get out of stocks completely, that nobody knows what is going
to happen in the future.
No. of Recommendations: 5
Sound advice.
Since we retired early, I made a point of having a cash cushion. Mom's death resulted in me inheriting a bit more, and I didn't reinvest it. I just let it stay in cash. So we won't be compelled to take SS before we wanted.
I don't have any plan to liquidate. I think we can ride out a few years. Which is all the big money people will allow, before they start threatening their congress-slime.
