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Today is the day! Sell stocks, invest bonds!


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2022 Nov 11, 8:30am   8,928 views  74 comments

by Shaman   ➕follow (4)   💰tip   ignore  

The market had a nice bump (exactly as I predicted) https://patrick.net/post/1347675/2022-10-05-the-stock-market-is-wrong-the-economy?start=1#comment-1891329 post election, indeed rising over the couple of weeks before the election. We have reached another peak, and the optimism will dribble out of the market quickly. I firmly expect drops in stock value to be the rule going forward for a few months. First it will be tax loss realization, as investors take losses they can write off on taxes for this year. That will depress stock prices, which will mean they will hold off on buying more for a while. This will become a self-perpetuating trend as more bad economic news rolls in. I expect heavy stock value losses in the early parts or next year. Perhaps even all year long as we saw in 2008.

I reinvested my investments in bonds yesterday, and switched my kids’ 529 college savings plan investments to bonds today. So I’m putting my own money on this bet, and I’m going all in.

BEAR MARKET alert!

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68   AD   2024 May 30, 10:20pm  

The stock market is erasing a lot of the COVID pandemic gains.

On one of several websites that track the stock market metrics, I saw that the inflation-adjusted S&P 500 is at the same level it was in October 2021 and only about 13.5% above its January 2021 level.

https://www.multpl.com/inflation-adjusted-s-p-500

This equates to an average annualized real gain of about 3.7% from January 2021.

I suspect it may drop from 3.7% to below 2% by this September as evidenced by recent major earnings disappointments such as today by SalesForce.

Historically the S&P 500's real annual gain or return is at least 7%.
70   AD   2024 Jul 27, 10:46pm  

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As far as the above post, I was expecting once interest rates decrease a little more and then steady, then the Vanguard Total Bond Market fund (ticker: BND) will steady also.

It was $90 in July 2020 and bottomed to $68 last October, when the 10 year Treasury peaked to 5% (which is now at 4.2%). BND is now $73.

BND average annual return is 2.9% since its creation in April 2007.

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72   Al_Sharpton_for_President   2024 Jul 28, 5:34am  

The 13-week T bill yield is losing gas.


73   FortwayeAsFuckJoeBiden   2024 Jul 28, 9:59am  

Eman says

richwicks says


Eman says



DD214 says






As much as some don’t like to admit, this is partially true.




I guess Sam Bankman Fried, Bernie Madoff, Ghislane Maxwell, Jeffrey Epstein, Nancy Pelosi, Joe Biden, Jeff Zuckerberg, Jeff Bezos, Bill Gates, etc are just really good people doing quite well. It's not like they are just criminals or something...


That was why I said it’s partially true as there will always be some exceptions. However, it’s generally true in most cases. 😂


I think real report card comes from god and soul, perhaps the world we leave behind in some ways, and footsteps we followed. i’ve seen poor and people with no opportunity in life never making it, and i’ve seen people who succeeded financially despite hardships. it’s all over the place. I’m sure you’ve seen it all too. at the end we are just dust in the wind.
74   AD   2024 Aug 28, 11:48pm  

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As far as bonds, stocks and economy, notice everytime the 10 Yr minus 2 Yr is no more than Zero, within a year there is a recession.

Look at the 2024 values, and if this trend or pattern is true, then expect a recession within 6 to 9 months.

https://fred.stlouisfed.org/series/T10Y2Y

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