patrick.net

DJIA 33,172.96 -1,092.41 (-3.19%) As of 12:40PM EST.

RC2006 says

Its lost a year of gains,

Years? It's roughly where it was last June.

Rin says

Ok, the following is not my opinion but that of another trader I know.

OH it was you that mentioned the Russell index yesterday.
Turns out your buddy called it.

https://www.thegatewaypundit.com/2022/01/markets-tank-nasdaq-sp-correction-territory-russell-2000-bear-market-territory/?source=patrick.net

I wonder if people are going to make a connection between the stock market crashing and Biden being in office.

They should. His foolish shutdown of the Keystone pipeline raised energy prices, and therefore inflation. Not to mention his unconstitutional mandates and the resultant job losses.

Everything that was feared about Trump was false about Trump, but is true about Biden:

- destruction of economy
- disastrous foreign relations
- descent into authoritarianism
- censorship
- racism
- corruption (notably the overt extortion of Ukraine to pay Hunter)

Let’s wait to see whom Biden blames for the drop in stocks; it’s the nail in the coffin for November 2022.
Even bleeding heart Democrats like money and are annoyed to see it go “poof”.
Of course, so do the infamous “independents”.
Interest rates are probably not going up much, so stocks should come back; GameStop and Peloton and others probably not.
Either way I will have to hang on because my greed exceeds my fear.

Patrick says

I wonder if people are going to make a connection between the stock market crashing and Biden being in office.

Not a crash (yet). The SP500 is up about 11% since the inauguration.

Lately this song has been running through my head so much…

https://youtu.be/DDOL7iY8kfo?source=patrick.net

porkchopexpress says

Patrick says

Lol!

If the rent is less then the cost of owning (interest, taxes, insurance, opportunity cost) then rent. Otherwise buy.

It's a complicated calculation, but not that complicated.

I tend to ignore macroeconomics. You really don't know what is going to happen there, so just concentrate on value.

Thanks Patrick for keeping it simple. We're moving to the Nashville area (from SCAL) and have never owned a home, so the wife is keen on owning. I'd hate to see the Fed ratchet up interest rates only to have me buy at the top of a bursting bubble, but I agree on the macroeconomic guesswork of that.

Just like marriage, buy in haste, repent at leisure. If you've got enough of a war chest to rent for a year or two, do that. You really need to get to know the city, then the various neighborhoods. Every house purchase/sale is up to a 12% round trip, so choosing unwisely will cost you again and again.

FJB says

bitcorn

At first I thought this was a typo.
https://bitcornproject.com/?source=patrick.net
It's real!

As long as my dividends aren't cut, I'm good.

Patrick says

Everything that was feared about Trump was false about Trump, but is true about Biden:

I think it is self-preservation smart for a president to choose a loser VP. Obama did.

Golly. I have already torn all my hair out and it's rebounded a percent.

Predictions of the next 5-10 years?

A lost decade, or full steam ahead due to printing presses?

That was a heck of a comeback - I maintain an overall bullish stance for this week.

Hircus says

Predictions of the next 5-10 years?

A lost decade, or full steam ahead due to printing presses?

"Nobody knows nothing"

djia wound up .29 percent up for the day. Well, at least I panicked while I had the opportunity.

W5000 up 0.45% today, down 8.49% since January 1.
I’m lately just watching WFC which I want to sell.
“Domp eet”

one can still buy mid, small cap and international funds, us large is overvalued.

If your new to an area, probably best if you rent for three to six months to get to know the area well before you buy. As far as house prices, I suspect they will go up for another year two. In many ways it reminds me of the 2004 to 2008 run up beforw the crash. Every cycle is unique, but there are some similarities.

When you do buy, purchase what you can afford. Also, if you can afford an extra payment or two every year, do so.
When I bought 10 years ago that's what I did, and when I found myself unexpectedly unemployed this time last year, I'm glad I had gone about it that way. It saved my bacon.

porkchopexpress says

Do I buy a house now or continue renting?

I'm trying to buy. You can use the R/V ratio to make sure you're getting a good deal. https://www.jasonhartman.com/rv-ratios-good-property-deals-math/?source=patrick.net

I follow the 18.6 year real estate/credit cycle. Late this year/Early 2023 real estate will have it's half cycle low and after that it will continue to go up until 2026/7 and then it will take years before the bottom is in. Sounds crazy but look at history always repeats itself.

https://propertysharemarketeconomics.com/18-point-6-property-share-market-economics/?source=patrick.net

Onvacation says

It's real!

What? You thought I was speaking about bitcoin? C'mon man everyone knows that's just a ponzi scheme.

mich says

I'm trying to buy. You can use the R/V ratio to make sure you're getting a good deal. https://www.jasonhartman.com/rv-ratios-good-property-deals-math/?source=patrick.net

On top of that there, everyone should be more cautious about the massive inflation. Its very likely can not be stoppable with $T spending that we don't have at least in the next few years. It doesn't mean the next R. POTUS will slow down either only will have a different priorities. All middle class and savers are being robbed by corrupt govs.

Hircus says

Predictions of the next 5-10 years?

A lost decade, or full steam ahead due to printing presses?

According to Piper Sandler, we’re in a secular bull market which should last till 2030 or so before we enter a secular bear market (multi-years).

Cyclical bear market can happen within the secular bull market, but the general trend should still be up. I’ll leave this chart from Piper Sandler here.

From a historical perspective, an average 17% correction is expected during the midterm election years.

https://twitter.com/ryandetrick/status/1480754093689876485?s=21&source=patrick.net

Eman says

17% correction is expected

Pricing stuff with the fiat money is complicated nowadays.

Something stinks. I smell the plunge protection team.

"Stocks have never been down so far, so fast in a year"

AmericanKulak says

"Stocks have never been down so far, so fast in a year"

Did you mean in a month? If that’s the case, did you forget March 2020?

FJB says

Something stinks. I smell the plunge protection team.

Yep, they will keep plugging any major correction.

Eman says

AmericanKulak says

"Stocks have never been down so far, so fast in a year"

Did you mean in a month? If that’s the case, did you forget March 2020?

Here is the article I pulled that from:

https://au.news.yahoo.com/market-never-plunged-10-fast-173607529.html?source=patrick.net

Q1 2020 was an unbelievable buying opportunity....they dont come often.....buy the dip in stocks and HODL!

I almost want to make some money and buy more but I guess I’m lazy.

According to the government, I will be around for 20 years if I am average life expectancy.

I’m betting I’m above average (Lake Wobegone).

So, I assume I have 10 years of capital appreciation.
10 year negative returns are rare in the stock market.

I of course hate to see my pile shrink, who doesn’t?
I hope it’s fleeting.

Looks like the PPT busy again on Tuesday.

clambo says

According to the government, I will be around for 20 years if I am average life expectancy.

20 years of useless eater sucking of resources and your social security benefits. DIE, PARASITE, FUCKING DIE ALREADY! Unless, of course, you are one of the Satanist elites and have put in a nice supply of adrenochrome and stem cells.

The Globalist Guv will do everything it can to kill everybody over 60, and then fake the stats to make it look like everybody lives to 90.

How else are they gonna get the votes?

We Are Being Warned That A Horrifying STOCK MARKET CRASH Which Could Wipe Out Trillions Has Now Begun
January 23, 2022 by Michael Snyder
http://theeconomiccollapseblog.com/we-are-being-warned-that-a-horrifying-stock-market-crash-which-could-wipe-out-trillions-has-now-begun/?source=patrick.net

Not sure what to make of the above, probably just more fear porn, they’ve been banging the drum for stock market collapse since 2008.

Social security payments are fleeting, an illusion.
If you depend on the money to live, you saved no money. You’re almost broke.Your life sucks.

If you saved money in IRAs, SEP-IRA, HSA, variable annuity, and regular accounts, you’ll have some retirement income sufficient to owe the Treasury almost what you get in social security payments.

Of course, Medicare has a lifetime “premium” deducted, starting at $144/month but it is increased as your income increases, so they take $204/month out of my social security payment.

I calculate my income would be higher if I had not contributed to social security and had just bought a variable annuity over the years.

ZIRP increased the price of assets, for sure, but did it increase the price of beef, gas and cars? Supply chain issues (COVID overreaction) and free money to combat the criminal COVID lockdowns and economic destruction caused prices to rise. Will raising interest rates only temper asset price inflation? Will consumables inflation subside on its own, once the madness ends? Already there will not be more bazooka free money, unless the Dems get really desperate around midterms. It is possible that inflation will slow and subside on its own, relieving the Fed of the need to QT and raise rates. Stay tuned.

Wages are also going up, at least entry level jobs are up $3-$5 per hour, and they still can’t find people who want to work

We are already in for a flat to slightly down stock market for the year.
It's past time to tame the housing market.