Do you guys think another market crash is coming?

[rtp]

Do you guys think another market crash is coming?

[quote=sandhillhunter;15649458]

Ive got the tangible part covered and continue adding to that pile./QUOTE]

Care to define tangible?

Cash? Precious metals?

I’m curious because holding cash right now is risky as well due to inflation risks.


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Various real estate(mostly industrial and some storage). I don’t want any of the headaches that come with retail and residential. Money is too cheap to keep much around right now IMO. While I do leverage to some degree I’m still very conservative on that front.

The margin on my Schwab accounts has been ridiculously cheap for years now. I have simply borrowed against my main account there to buy what I want. My last commercial property loan was 4.25% and my margin for the down payment was been sub 2%.

I just refinanced another one for a flat 4% about a month ago. These are 5 year loans with balloon payments at the end.

Find a quality property that is under market value and it is hard to not make a killing on it in the last 5 yrs or so with the cheap money. They are out there you just have to find them.



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[sandhillhunter]

[quote=rtp;15649571]

Various real estate. Money is too cheap to keep much around right now IMO. While I do leverage to some degree I’m still very conservative on that front.


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Makes sense. Thank you.


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[JES]

What goes up, must come down.

[overcomer401965]

The reset is upon boys. To control us they must divide and break us.

[SabineHunter]

[quote=rtp;15649571]

Various real estate(mostly industrial and some storage). I don’t want any of the headaches that come with retail and residential. Money is too cheap to keep much around right now IMO. While I do leverage to some degree I’m still very conservative on that front.

The margin on my Schwab accounts has been ridiculously cheap for years now. I have simply borrowed against my main account there to buy what I want. My last commercial property loan was 4.25% and my margin for the down payment was been sub 2%.

I just refinanced another one for a flat 4% about a month ago. These are 5 year loans with balloon payments at the end.

Find a quality property that is under market value and it is hard to not make a killing on it in the last 5 yrs or so with the cheap money. They are out there you just have to find them.



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I'm thinking When the market crashes, so does the cheap money plus they will call in your margins. Property values will drop steeply as well. Etrade called in my margins once and it wasn't pretty. You have one day to sell to make the margin and they sell whatever they want after that. I haven't used margins ever since. I'm looking to buy a bunch of puts as soon as this market begins to turn south.

[rtp]

[quote=SabineHunter;15649817]

I'm thinking When the market crashes, so does the cheap money plus they will call in your margins. Property values will drop steeply as well. Etrade called in my margins once and it wasn't pretty. You have one day to sell to make the margin and they sell whatever they want after that. I haven't used margins ever since. I'm looking to buy a bunch of puts as soon as this market begins to turn south.

You missed the part where I said I was very conservative in the use of leverage/margin. Im not even leveraging 10% of what I have in those accounts. I will never have a margin call.

[SabineHunter]

[quote=rtp;15649944]

You missed the part where I said I was very conservative in the use of leverage/margin. Im not even leveraging 10% of what I have in those accounts. I will never have a margin call.

Yep, I guess I did miss that part. At one point I controlled 1.3 m on an initial investment of 51k. Dow 2009 was very good for me.

[Acameron52]

[quote=rtp;15649571]

Various real estate(mostly industrial and some storage). I don’t want any of the headaches that come with retail and residential. Money is too cheap to keep much around right now IMO. While I do leverage to some degree I’m still very conservative on that front.

The margin on my Schwab accounts has been ridiculously cheap for years now. I have simply borrowed against my main account there to buy what I want. My last commercial property loan was 4.25% and my margin for the down payment was been sub 2%.

I just refinanced another one for a flat 4% about a month ago. These are 5 year loans with balloon payments at the end.

Find a quality property that is under market value and it is hard to not make a killing on it in the last 5 yrs or so with the cheap money. They are out there you just have to find them.



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You sound like someone much smarter financially than me so I’ll ask…

If it does take a turn in the future (which I personally think it will), is that the time to jump into the rental property game?? I’ve got an extremely stable job that won’t be going anywhere. I’ve sold some stuff and moved things around over the last few months to put some money in the bank in preparation for it to go down. My thinking is to jump into some investment property once it does. I’m only 25 years old with a ways to go until retirement so I don’t mind putting some of that on the line to set myself up for the future.

[rtp]

[quote=Acameron52;15650116]

You sound like someone much smarter financially than me so I’ll ask…

If it does take a turn in the future (which I personally think it will), is that the time to jump into the rental property game?? I’ve got an extremely stable job that won’t be going anywhere. I’ve sold some stuff and moved things around over the last few months to put some money in the bank in preparation for it to go down. My thinking is to jump into some investment property once it does. I’m only 25 years old with a ways to go until retirement so I don’t mind putting some of that on the line to set myself up for the future.

I would just say that most ordinary people will create wealth through real estate. The stock market is fine and all but if you are lucky, you will average 8% annually over time. Certainly that is good but that will not create wealth just a very nice nest egg to retire on. Which aspect of real estate to delve into has to be determined by the individual. Example, there is a lot of money to be made in residential rental property but I dont have the time and energy to babysit a handful of these properties. I have a few friends that do it because the $$$ to entry is probably the lowest in any real estate category. A lot of that has to do with the amount of capital they have to get in the door so to speak. It is certainly cheaper to get into residential rental property than say industrial or office space. At your age, you have plenty of time to figure it out. One tip that was given to me long ago about real estate is to always buy good to prime property. Yes it costs more, but that is because it is desirable. Dont buy cheap stuff just because you can afford it. This piece of advice has served me well. You might see if you can find a storage play that is looking for investors to get started. The minimum buy in will probably be somewhere between $50k-$500k. It has boogled my mind for a decade now at how much people use storage facilities and how much they pay to do so each month. Good luck.

[rtp]

What goes up, must come down.

Why do you have to bring all that negativity up in here?

[Zmaxhunter]

https://youtu.be/GI4FLbW30vo

https://youtu.be/tmWkmf6Sq6I

https://youtu.be/TUtoOtTi7Bo

All i buy is tangible assets, stocking alternative fuels, bought lots of materials, copper wire, wood, plywood, etc, all before the mass inflation.. stacking food to the rafters.
Im an electrical contractor.. plus i have a guide service.. if i had $50k in materials before.. i have about $150k now.
Shop for deals, auctions, garage sells, etc.
The reset is coming

https://youtu.be/pV8FQpc1NlQ

Klaus shwab cyber attack

https://youtu.be/0DKRvS-C04o

https://sociable.co/technology/prepping-cyber-pandemic-cyber-polygon-stage-supply-chain-attack-simulation/amp/?__twitter_impression=true

The WEF, https://youtu.be/8rAiTDQ-NVY

Buffett is sitting on billions in cash.. waiting for the crash.

[OldRiverRat]

Russia exiting all $ denominated assets from their wealth fund and buying into oil and coal assets. Occurring while US has 30% increase in Russian oil imports.

Expect several additional things to happen:
1. Oil prices will continue to increase and US will have no bargaining power because Biden and idiots trying to destroy US energy industry.
2. China to dump US treasury holdings once FED begins increasing interest rates and reducing FED balance sheet.

Objective is to destroy US economy and eliminate $ as premier world currency. If it works we will see big inflationary increase in western world.

It’s coming
70’s all over again but worse


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Just some supporting data to my comments above

US Reliance on Russian Oil Surges to Record High Amid Tensions
BY EMEL AKAN
June 17, 2021 Updated: June 17, 2021
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WASHINGTON—Russian oil imports have set a new record in the United States despite the strained relationship between Washington and Moscow. Industry experts believe the Biden administration’s climate policies will make the country more dependent on foreign oil producers.

The United States imported record levels of crude oil from Russia in March and is expected to continue importing at high levels in coming months, according to the Western Energy Alliance, a trade association that represents 200 independent natural gas and oil producers in the United States.

Imports of crude oil and petroleum products from Russia reached 22.9 million barrels in March, the highest level since August of 2010, according to International Energy Agency (IEA). Of the total amount, crude oil imports from Russia stood at 6.1 million barrels. Russia has become the third-largest oil exporter to the United States.

High levels of oil shipment from Russia have continued since March, according to ClipperData, a commodity intelligence company that monitors cargo shipments worldwide.

“Last month we saw a record 5.75 million barrels of Russian crude discharged in the US, and we’re projecting a further record this month of 7.5mn bbls,” ClipperData analysts wrote on Twitter on June 7.

Critics argue that Biden’s climate agenda is hard on the U.S. oil industry but soft on foreign producers.

Experience the best way to read The Epoch Times online. Try our free app for a limited time.

“It’s disturbing to our industry that the Biden administration goes out of its way to disadvantage the American producer while buttressing the Iranian and Russian industries,” Kathleen Sgamma, president of the Western Energy Alliance, told The Epoch Times.

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The recent spike in Russian oil imports has followed the “misguided climate policies” of the administration, including ending the Keystone XL pipeline and pausing new oil and natural gas permitting on public lands and waters, according to Sgamma.

President Joe Biden has “tipped us into oil dependence on Russia just a year after complete independence,” Sgamma said, calling it “a geopolitical gift” to the Kremlin.

U.S. West Texas Intermediate crude surpassed the $70 mark last week, reaching the highest level in over two years. Top commodity traders now believe oil prices could see $100 per barrel due to supply constraints. Oil hasn’t traded above $100 per barrel since 2014.

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“There’s been kind of a dearth of investment in fossil fuels, which is going to leave us undersupplied as we go forward,” Phil Flynn, senior energy analyst at the Price Future Group, told The Epoch Times in a recent interview.

He noted that the Biden administration’s climate policies, which will reduce the supply of oil and gas, have been a major factor in driving the prices.

“U.S. oil production has fallen by 1.715 million barrels [per day] from a year ago, so a large part of that void is being filled by Russia,” Flynn wrote in a recent op-ed on Fox Business.

“During Trump’s term, America was competing with Russia and Saudi Arabia to be the world’s dominant oil and gas producer, yet under Biden, we are retreating from that race in the name of climate change,” he wrote.

An increase in oil and gas prices will help boost Russia’s energy and political dominance, he argued, criticizing Biden’s recent move that will allow Russia to supply natural gas to Germany.

The Biden administration last month waived Trump-era sanctions against the company building the Nord Stream 2 natural gas pipeline that links Russia and Germany.

The pipeline is expected to increase the dependence of the region on Russia for natural gas. Construction on the 764-mile pipeline that began in 2018 was a source of friction between Washington and its European allies.


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[Hogmauler]

So will cash be worth anything when inflation eats it up? Our investor recommended municipal bond and some precious metals. Then I heard that as inflation rises you lose money in bonds. What does the screen say?

[Grand Passage]

Buffett is sitting on billions in cash.. waiting for the crash.

Please explain why he would do this. If the crash comes and the dollar is worth nothing, his billions in cash would be worth a fraction of current value, correct?

[txpitdog]

Please explain why he would do this. If the crash comes and the dollar is worth nothing, his billions in cash would be worth a fraction of current value, correct?

He’s betting that the decrease in the value of the dollar is less than the decrease/contraction in the valuation of the companies he would invest in. If the dollar loses 5% but funds lose 10%, he wins by 5% before any kind of recovery or upswing even begins.