Maybe a depression hits and your home value gets reduced to half, while you lose your job and unable to pay mortgage, so your home gets foreclosed. That’d be a true life lesson for you.
Not worried one bit - if my home gets slashed in half I’m actually happy (because others will be on sale too). Oh by the way I just got another recruiting email, this time from SNAP…lol
So much job demand… no recession worries
Whether it is sarcastic or serious, most of us are speechless with lot of REDs !
BTW: President denied signing stop gap shutdown bill today !
He needs to stop watching TV. Fox has been on non-stop don’t sign with wall to wall coverage since last night and continuing from 6 AM this morning targeting him (since the are aware he spends hours watching Fox every morning). Seems to have worked as they changed his mind. It shows the world that he can be be easily manipulated by what he watches.
I do not watch CNN , Fox, but watch Bloomberg for stocks. Just few minutes before Paul Ryan came (Live TV) and said WH is not signing !
I trust Bloomberg and WSJ better than otehr channels.
Was giving background on why the WH flip flopped yet again. Lobbying by Fox news conservatives
At this point the yield on the S&P is close to the yield on cash. Historically that’s always been a good entry point. If you’re sitting on cash there’s no reason to be afraid to invest at these levels. Maybe it’s not the low for this cycle. So what? You still lose nothing.
I will preface by saying I am not pulling anything out of the market (since I don’t plan to buy anything in the coming year or two). That said the counterpoint to the above argument is that the yield is based on the current economy. If a recession hits and profitability tanks, then your yield will drop. So it is risk free to enter right now only if you assume the economy continues on a flat to up trajectory
If the economy really does enter a recession in the near future the yield on your cash will drop as well.
I didn’t get any recruiting email. Is it ageism?
The lower the price, the higher the yield. What does your statement means? Thought yield of S&P is always higher than yield on cash. So as prices drop, yield of S&P would be even higher.
Market is still higher than Feb/Mar.
My point is that no one knows if we are at a bottom and about to bounce back or if we will go lower first. But if you give up no yield by going into equities now it’s a safe bet. Selling gets you the same yield and the risk of having sold at the bottom and missing part or all of the next leg up.
I am seeing some positive with SPY, QQQ, FB puts and SPY short (would have gone to DIA short) !
I did not use full cash this time, but around 50k level overall short/put amount.
Market is fairly green today, Santa is here
Did you buy these? I also bought ABBV in addition to JNJ hold.
Thinking about PFE for right entry.
Guess you are referring to Healthcare stocks. Only 100 JNJ.
I hold 300 JNJ.