Dave Taylor
Rex kwan Do
The sheep (your average citizen)live off a system.A system works until it doesn't. We as sheep rely on 401Ks, annuities, pensions, iras and stocks to live day to day and retire. I've talked about this before but in a situation like what could potentially happen in the next few weeks how do you guys protect yourselves? Where do you get all this"buy the dip" money as most people just add weekly to the markets. I feel like in the event of a crash or systemic breakdown 99% of people don't have cash to buy the low. This only happens a couple of times in our generation.
I ask this because despite everyone always saying"stocks always go up" or "just BTFD" or "dollar cost average s&p500" most people can't do that. I feel this time is different. In 40 years we have lowered rates and printed more US dollars. Now, after this huge blown up bubble that got exaggerated in 2009 and blown the F up when covid hit it may be time to pay the piper. The FED (Mr Powell) is consistently raising rates( tightening or removing liquidity from the markets), the economy is in a recession, inflation is rapidly increasing(not transitory), unemployment is peaked and the stock market is declining. Bonds are a horrible investment and the US dollar seems the only place to stash your loot. I generally don't have a great feeling about this coming week in particular let alone the next 2 years or so.
Who here is prepared if the S&P500 goes from the all time high of 4800 down to 3000? Retirees? SPACS and small caps have collapsed, literally the first to get sold off in mid 2021. Shitcoins are garbage, gold is garbage, the S&P. DOW, RTY, NDXand just about everything look to be falling off a cliff. Your typical supply/demand is not working as supply is there but demand is not, yet prices still high.How do we control inflation? Is the only option to print more money and lower rates?We are left with not much room to lower. What do you smart financial guys tell your clients now? I personally just bought a JPM short note that pays 11% annual and will mature March 2024. This basically relies on the SP500, $RTY and $NDX not declining more than 30% in any given month or risk of losing that month's premium payment. It also means this 3 need to bless than 30% lower when they are called in 2024. Still not 100% sure we can do this but the world is F'd if this truly does happen.
So, long story short...who here is prepared if their assets(equities, bonds, precious metals and homes) decline more than 40-50-%? We may be at the end of a 40 year cycle of printing money and lowering rates. I would hate to have to buy an overpriced house right now with a 6% plus mortgage rate.
I ask this because despite everyone always saying"stocks always go up" or "just BTFD" or "dollar cost average s&p500" most people can't do that. I feel this time is different. In 40 years we have lowered rates and printed more US dollars. Now, after this huge blown up bubble that got exaggerated in 2009 and blown the F up when covid hit it may be time to pay the piper. The FED (Mr Powell) is consistently raising rates( tightening or removing liquidity from the markets), the economy is in a recession, inflation is rapidly increasing(not transitory), unemployment is peaked and the stock market is declining. Bonds are a horrible investment and the US dollar seems the only place to stash your loot. I generally don't have a great feeling about this coming week in particular let alone the next 2 years or so.
Who here is prepared if the S&P500 goes from the all time high of 4800 down to 3000? Retirees? SPACS and small caps have collapsed, literally the first to get sold off in mid 2021. Shitcoins are garbage, gold is garbage, the S&P. DOW, RTY, NDXand just about everything look to be falling off a cliff. Your typical supply/demand is not working as supply is there but demand is not, yet prices still high.How do we control inflation? Is the only option to print more money and lower rates?We are left with not much room to lower. What do you smart financial guys tell your clients now? I personally just bought a JPM short note that pays 11% annual and will mature March 2024. This basically relies on the SP500, $RTY and $NDX not declining more than 30% in any given month or risk of losing that month's premium payment. It also means this 3 need to bless than 30% lower when they are called in 2024. Still not 100% sure we can do this but the world is F'd if this truly does happen.
So, long story short...who here is prepared if their assets(equities, bonds, precious metals and homes) decline more than 40-50-%? We may be at the end of a 40 year cycle of printing money and lowering rates. I would hate to have to buy an overpriced house right now with a 6% plus mortgage rate.
