Markets and FED QE

[rtp]

Well no pause in rate hikes yet. Just the opposite. Just raised 0.75% largest in a long time.

Needed to happen. Should have started these last year.


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[RiverRat1]

Needed to happen. Should have started these last year.


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Should have never created so much money or lowered to zero % in the first place

[rtp]

Should have never created so much money or lowered to zero % in the first place

True.....those are actually the root cause.

[Mudslinger]

My short honest is opinion, we are screwed especially if you are already retired. Our retirement funds are being destroyed.! I put this straight on Biden!

[RiverRat1]

I hate Biden as much if not more than everyone else...This is not all his fault though. Sure high gas/oil is his fault. It's failed liberal BS policies that are all their fault.

But it's all politicians fault that voted to spend, print, and/or give away money.

Now if Trump were in office would things be different? Sure. But there would still be inflation, just not near as bad IMO...BUT it would get to us one way or another IMO sooner or later.

[RiverRat1]

Looks like bond funds are now 4-6% down from when I started this thread.
And the markets down 6-10%

Looks like cash was the place to be.

Wish I would listen to myself more. Seems like I have lots of guesses but when I take the time to post on TBH that's the ones that actually happen.

Next time I post a thread like this I need to follow my own thoughts more LOL

They'll use any dips in the market, especially closer to election day, as an excuse to pause the rate hikes. They don't want high interest rates. They would rather stick us with higher inflation than have higher rates on all that government debt.

Nope. FED was serious this time. Even now they're still saying they will raise more well into 2023.

Well no pause in rate hikes yet. Just the opposite. Just raised 0.75% largest in a long time.

Now get bonds to move up. Or crash the SPY to 300 and end this cycle. I don't think that will happen though. In the past it takes years to slow inflation.

IMO investing will revert to more like the late 80's and early 90's once the FED is complete. May not be a bad thing.

[Tex_Cattleman]

So what are you doing now, Rat (meaning today)?

I've always tried to build cash when market is high and go in on a "real" drop. I have been waiting for this one and am jumping in. I fully believe in jumping in when everyone is scared, and taking profits when everyone believes it rains money forever.

It's at a risk of needing (and not having) that cash over the next few years, but heck - building wealth is a risk in the first place. Making my living by closing mortgage loans is not pretty right now.

I went in .25% of my cash today. I'll trickle in more as the market dives, IF it does. If it turns and I'm not yet all in, that's perfectly fine. Cash in the bank is always the opportunity to jump on a good real estate deal.

[Gumbo Man]

So what are you doing now, Rat (meaning today)?

I've always tried to build cash when market is high and go in on a "real" drop. I have been waiting for this one and am jumping in. I fully believe in jumping in when everyone is scared, and taking profits when everyone believes it rains money forever.

It's at a risk of needing (and not having) that cash over the next few years, but heck - building wealth is a risk in the first place. Making my living by closing mortgage loans is not pretty right now.

I went in .25% of my cash today. I'll trickle in more as the market dives, IF it does. If it turns and I'm not yet all in, that's perfectly fine. Cash in the bank is always the opportunity to jump on a good real estate deal.

I like your way of thinking.

[RiverRat1]

I'm watching and waiting. Debating on selling the rest on my PUTS.

Overall day to day this market is impossible to trade or time. Even week to week.

Before this drop I was 90% sure markets would correct. But man alive they rallied it so hard up to SPY 430 in the face of everything bad it made it hard to short.

I'm still saying they go 10-20% lower within 6 months BUT zero idea if they rally up or tank on Monday or what they do until they break lower.

If they go back to normal trading this soon then nothing changes. They need to wipe out many more traders to end this. If you're not scared to buy then it's not the bottom.

[TeamAmerica]

So what are you doing now, Rat (meaning today)?

I've always tried to build cash when market is high and go in on a "real" drop. I have been waiting for this one and am jumping in. I fully believe in jumping in when everyone is scared, and taking profits when everyone believes it rains money forever.

It's at a risk of needing (and not having) that cash over the next few years, but heck - building wealth is a risk in the first place. Making my living by closing mortgage loans is not pretty right now.

I went in .25% of my cash today. I'll trickle in more as the market dives, IF it does. If it turns and I'm not yet all in, that's perfectly fine. Cash in the bank is always the opportunity to jump on a good real estate deal.

.25 or 25% cash!? Catching a falling knife is hard. I still think we have at least 15 to 20% to go in the market. To get rid of inflation you need higher unemployment. You literally need to contract the economy and bond rates look really attractive right now with 3 mth t bills pushing 3.5%.

[brokeno]

Heard tonight on the news that if you have invested $10,000 in stock markets when trump was elected it would have been worth $20,000 when he left and if you have invested $10,000 in stock market when Biden took over you would have lost $6,000 so far. F j b

[miket]

Im sitting on cash, dont know enough to get in the stock market. I kind of like the idea of holding cash to be ready for the good real estate deals though. Though I know nothing of real estate....may just sit on cash forever

[TeamAmerica]

I believe the banks are much healthier than they were in 2008. Will be interested to see if they can still lend thru another crisis. It won't matter if rates are at 20% because no one can afford to borrow! Powell has been on record that Volcker is his mentor and he had no issue raising rates to 20%! If the fed is not buying bonds, fewer buyers means higher yields. Market manipulation at the highest level!

[KactusKiller]

Amazing how wealth plans change in such a short amount of time? Just a yr ago I was told and was telling others that cash laying around was a bad thing. Between rising inflation and high rates of return in investment sitting in cash in the safe or in a savings account was loosing you money. Now I’m just under a yr cash is king. No def answers when it comes to investing.

[TeamAmerica]

So what are you doing now, Rat (meaning today)?

I've always tried to build cash when market is high and go in on a "real" drop. I have been waiting for this one and am jumping in. I fully believe in jumping in when everyone is scared, and taking profits when everyone believes it rains money forever.

It's at a risk of needing (and not having) that cash over the next few years, but heck - building wealth is a risk in the first place. Making my living by closing mortgage loans is not pretty right now.

I went in .25% of my cash today. I'll trickle in more as the market dives, IF it does. If it turns and I'm not yet all in, that's perfectly fine. Cash in the bank is always the opportunity to jump on a good real estate deal.

What rates are you seeing Trey? MND is saying 6.6%. Is that close to reality? Without buying points?