Investment Thread

[YmoBeThere]

I didn`t want to start a separate thread but did want fo note the passing of former Fed Chairman Paul Volcker yesterday. A giant among central bankers(he was 6'7"), he was credited with breaking the high inflation of the 70s and early 80s. For that we are in his debt.

[Jeffrey]

I didn`t want to start a separate thread but did want fo note the passing of former Fed Chairman Paul Volcker yesterday. A giant among central bankers(he was 6'7"), he was credited with breaking the high inflation of the 70s and early 80s. For that we are in his debt.

Volcker may have been Carter’s best decision. Volcker knew the best solution and refused to let many others try to convince him otherwise. Paul deserves a lot of the credit for the amazing US economic run since the mid-80’s. He did not let his very substantial knowledge of free markets stop him from massive interest rate manipulation. It’s been all down hill from there.

RIP, and many thanks, Big Paul!

[fuse]

I’ll see if I can find the article, read something today that stated more money has been pulled out of the stock market since the start of the year than ever (?), to the tune of $130B+.

Any exaggeration/misrepresentation of the details is mine.
Pretty scary that the market is simultaneously super hot and investors are taking the money and parking it in safer places.

[Jeffrey]

Pretty scary that the market is simultaneously super hot and investors are taking the money and parking it in safer places.

IMO, pretty awesome.

[YmoBeThere]

I’ll see if I can find the article, read something today that stated more money has been pulled out of the stock market since the start of the year than ever (?), to the tune of $130B+.

Any exaggeration/misrepresentation of the details is mine.
Pretty scary that the market is simultaneously super hot and investors are taking the money and parking it in safer places.

I’m not shocked. The youngest Baby Boomers are 55. So many are now retiring, they will have to take money out of their accounts. The oldest of them will have to due to RMD requirements.

As for me, I’ve had a great year in my trading account(other accounts too but those stay fully invested). So much so, that I took funds out to buy a long desired item.

[fuse]

IMO, pretty awesome.

Would enjoy the benefit of your perspective.

My read was teetering on a razor’s edge of high highs and fears of a big crash.

Since my crystal ball is cloudy, I don’t mind enjoying the high highs. I’d love to avoid a huge loss.

Ok, duh, now that I’ve gotten the obvious out of the way...

[OldPhiKap]

I’m not shocked. The youngest Baby Boomers are 55. So many are now retiring, they will have to take money out of their accounts. The oldest of them will have to due to RMD requirements.

As for me, I’ve had a great year in my trading account(other accounts too but those stay fully invested). So much so, that I took funds out to buy a long desired item.

Which raises the question -- are folks pulling money out to park it somewhere safer, or pulling it out to spend (i.e. keep the economy moving)? For example, I pulled funds out of a 529 mutual fund basket and it went to tuition, private apartment owners, etcetera as opposed to a simple reallocation of asset classes.

[bundabergdevil]

I’m not shocked. The youngest Baby Boomers are 55. So many are now retiring, they will have to take money out of their accounts. The oldest of them will have to due to RMD requirements.

As for me, I’ve had a great year in my trading account(other accounts too but those stay fully invested). So much so, that I took funds out to buy a long desired item.

An "Indecent Proposal" style night with James Ingram?

[OldPhiKap]

Another theory on money flows from US stocks:

https://www.cnn.com/2019/12/10/inves...ing/index.html

[Jeffrey]

Would enjoy the benefit of your perspective.

Sure, FWIW, I'll respond later today, instead of a couple quick one liners now.

[YmoBeThere]

An "Indecent Proposal" style night with James Ingram?

Hmmm, nope. A 1971 Pontiac Trans Am.

[bundabergdevil]

Hmmm, nope. A 1971 Pontiac Trans Am.

Wait. So your handle isn't inspired by 40 Year Old Virgin? Hmmmm...I could see how my comment could be, ahem, odd then.

[Jeffrey]

Hmmm, nope. A 1971 Pontiac Trans Am.

Hope you've been making great progress. I'm just not up for that amount of work anymore. Wimped out and got a 2019 ZL1 with 650 horses/650 lbs. of torque and the new A10.

[Jeffrey]

Would enjoy the benefit of your perspective.

IMO, there are substantially better investment options than money markets.

https://www.cnbc.com/2019/10/12/inve...he-crisis.html

FWIW, I'm thrilled when most disagree with me. I'm a contrarian investor and strongly believe most investors will make the wrong choice. So, I'm greedy when others are fearful. IMO, FOMO will kick in if we get a phase one China trade deal and Biden wins the D nomination.

IMO, this continues to be the best domestic economic/equity period of my lifetime. I absolute love buying equity when interest rates continue (for a decade and maybe even a decade more) to stay at 35 year lows, U.S. corporate tax rates are at 68 year lows, U.S. unemployment rate is at a 50 year low, and U.S. Government and consumer spending are going through the roof. There's nothing left to do but smile, smile, smile.

[YmoBeThere]

Hope you've been making great progress. I'm just not up for that amount of work anymore. Wimped out and got a 2019 ZL1 with 650 horses/650 lbs. of torque and the new A10.

Finely crafted machines, but do they have a soul?

[YmoBeThere]

Wait. So your handle isn't inspired by 40 Year Old Virgin? Hmmmm...I could see how my comment could be, ahem, odd then.

Lol, nope. I was listening to that song when it was first released in ‘83-‘84 when I was a teenager. And my nickname to every one of my peers was Yamo (first part of my last name) or nouch (part of the second half of my last name.). By the time I hit undergrad in Durham in the late 80s, I was still known by most of my classmates as either one of those. If any of them posted here, I’m fairly certain they would recognize my screen name. Alas, they haunt other realms for their social fix.

*Actually the first part of my last name is Yama and I had a friend who always addressed me as that or in its place, the Rockin’ Llama

[Jeffrey]

Finely crafted machines, but do they have a soul?

Give me a year to finish my mods and it’ll have 800 horses at the wheels. Does that qualify?

Do you run the Texas Mile? Many of my car friends take their rides there.

[YmoBeThere]

Give me a year to finish my mods and it’ll have 800 horses at the wheels. Does that qualify?

Do you run the Texas Mile? Many of my car friends take their rides there.

Will you use a Bridgeport or a manual lathe in crafting the parts to achieve your HP gains???

I know a couple guys that have done the Texas mile, but the guys in my club that do most of the racing were Bonneville afficianados.

What driving I have done has been a 1/4 mile at a time.

[bundabergdevil]

Lol, nope. I was listening to that song when it was first released in ‘83-‘84 when I was a teenager. And my nickname to every one of my peers was Yamo (first part of my last name) or nouch (part of the second half of my last name.). By the time I hit undergrad in Durham in the late 80s, I was still known by most of my classmates as either one of those. If any of them posted here, I’m fairly certain they would recognize my screen name. Alas, they haunt other realms for their social fix.

*Actually the first part of my last name is Yama and I had a friend who always addressed me as that or in its place, the Rockin’ Llama

Welp, I totally whiffed on that then. I was convinced you really liked this scene from aforementioned movie:

[YmoBeThere]

Well, hopefully no one whiffed in 2019 as it was a good year for most of the averages. Even the international markets showed some life.

Good luck in 2020, be it investing, trading, modifying your car, or watching old Steve Carrell films!