patrick.net

Malcolm says

And believe it or not, I believe we are in a recession at this time given the insane bargains on things like home improvement, travel and entertainment

Where are you seeing insane bargains? I’m in the Midwest and am not seeing anything approaching a bargain on travel at least. I’m mainly talking domestic, Caribbean and Mexico.

Airlines have some of the highest fares I’ve seen lately, especially domestic summer travel. If you can afford the airfare you can afford whatever the lodging and entertainment in those areas is charging. That’s only one metric, but I’m just not seeing/feeling any deals around. Might be different by you.

Patrick says

Malcolm says

Pay absolutely every debt that you have. Pay down/off mortgage.

@Malcolm I absolutely agree. Simply not paying interest is usually a good investment.

That depends.

If you can make a higher return putting that money to work than what your interest rate is, do it. Plus, it's better to stay more liquid than having your money tied up in equity, which can be difficult to extract, if needed. It's the net cost that matters.

Malcolm says

Paying debt is the safest investment you can make.

Not always. When I make major purchases, I play the zero percent game, and use other people's money and hang on to my cash. I'll take that type of debt every day of the week.

Malcolm says

When everyone’s defaulting you will be golden.

Which is why you need dry powder on the sidelines, just waiting to suck up the bargains. In tough times, try going and refing your house to get the cash you want for a fire sale. Good luck finding a bank that will loan the money during a meltdown and recession.

Malcolm says

It is way easier to not have to spend money in the future than to save and plan for it.

You won't have to spend money in the future, as you won't have any. It will already be spent on all that other stuff.

Sniper says

That depends.

If you can make a higher return putting that money to work than what your interest rate is, do it. Plus, it's better to stay more liquid than having your money tied up in equity, which can be difficult to extract, if needed.

Just be sure you factor in a risk premium for those comparisons. Yes, ridiculously low mortgage rates are tempting to leave to invest, I have done it in the past. I say, take the safe bet any day. You have plenty of liquidity when you are debt free. I've also never said don't save, or don't invest, I just maintain that those activities are further down the priority list.

Other income is also a huge factor to consider. If someone has a good job, they may opt to save and invest differently.

If you have passive income, like rentals, you could also invest that way. Not necessarily by acquiring, but you could improve cash flow from rentals by paying down liabilities relating to passive investments.

Funny thing, just skimming other posts, not one person suggests starting a small business. Pretty sad state of affairs in the USA.

No recession here, nothing to see here folks.

BayArea says

6mo later with increasing volatility, I’d like to bump this back to the top to see how people’s strategies are changing and if any stocks stand out in your portfolio moving forward?

So, to give you a specific answer, the best performing in my portfolio is my defense stocks and defense ETFs. With all the saber rattling and the "my dick is bigger than yours" going on around the planet, a shooting conflict isn't that far away. I'm expecting even better returns in the future.

Sniper says

Not always. When I make major purchases, I play the zero percent game, and use other people's money and hang on to my cash. I'll take that type of debt every day of the week.

Absolutely. Least acquisition cost. I do it too. Different subject. Talking about paying down debts, not on smart financing of purchases. Also, cash is king, the zero financing game is marketing. I opt to use a 3% rebate, Amazon Visa instead of same as cash financing. I pretty much only use Amazon for most things. Changing times and buying habits. Sure, I'll make two or three payments for tires if they are doing zero interest same as cash financing. I love using zero cost money, especially when I had some revolving debt, that's when it is really awesome to borrow. Borrowing at 0% to pay a card at 10-15%? Yes, that's a no-brainer, when you fully understand terms, like cash advance fees, and that stuff.

anonymous says

Bobs numbers are way exaggerated.

$50k purchase $800/m is war zone territory. Vacancy will be at least 30% and maintenance will be through the roof as tenants will cook meth turn tricks and trash the house before leaving.

Even $20K houses in those areas don't work. Stay the hell out of Jackson, MS if you are considering buying rentals. Even if you are given the houses for free, it is impossible to make money as a remote landlord. You lose a productive year of rents every time you have a vacancy. Those people are the scum of the Earth.

Funny thing, just skimming other posts, not one person suggests starting a small business.

To be fair, that was not the question. Starting a small business is not an investment, it is a change of job. The statement "Say you have $100K-150K cash to invest today. Let's say the investment period is 5+yrs" strongly implies someone keeping their job and looking for what to do with invest-able cash.

HeadSet says

Funny thing, just skimming other posts, not one person suggests starting a small business.

To be fair, that was not the question. Starting a small business is not an investment, it is a change of job. The statement "Say you have $100K-150K cash to invest today. Let's say the investment period is 5+yrs" strongly implies someone keeping their job and looking for what to do with invest-able cash.

I stand corrected; not one person suggested investing in a small business.

Malcolm says

I stand corrected; not one person suggested investing in a small business.

I actually tried to do that in my area. I was looking for a place to park some money and diversify, kinda like a "Shark Tank" approach with a local business.

Couldn't find anything respectable. Lots of crazies looking for me to invest in some wacked out idea they had, but no legitimate business that could use the help/money.


Malcolm says

If you have passive income, like rentals, you could also invest that way.

I've looked at that too, but being a landlord in a screwed up state where tenants have better rights than landlords, and where it takes multiple months to evict a squatter, too much to risk.

BlueSardine says

buy low sell high.

Why are there 50 posts after this one? @Patrick ... close the thread on this advice.

Sniper says

I actually tried to do that in my area. I was looking for a place to park some money and diversify, kinda like a "Shark Tank" approach with a local business.

Couldn't find anything respectable. Lots of crazies looking for me to invest in some wacked out idea they had, but no legitimate business that could use the help/money.

I tried that too. I had some money to place and even advertised that I wished to evaluate business plans. Even if there was a seed of an idea, the guys were always nutty.

Unless you are religious about going to the gym, id invest some in good execercise equipment and a good personal trainer.

Also consider a flash car and only giving rides to women with great legs and short skirts.

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anonymous says

Bobs numbers are way exaggerated.

$50k purchase $800/m is war zone territory. Vacancy will be at least 30% and maintenance will be through the roof as tenants will cook meth turn tricks and trash the house before leaving.

Not really-maybe in CA. In many parts of the country 800 bucks is a very decent rent. CA yes.

Being around others that exercise is more lasting, inspirational than home equipment.
Home equipment for the majority of purchasers winds up not being use...

willywonka says

Unless you are religious about going to the gym, id invest some in good execercise equipment

BlueSardine says

Unless you are religious about going to the gym, id invest some in good execercise equipment

Check out an app called AllTrails. It is free. Save the money on the home gym equipment. Go out alone or with friends, but go walk and explore your area. It is one of the best freebies there are. It is amazing how good you'll feel checking out a new place every week or so.