Home Forums Hunting & Shooting Hunter's Campfire Speculation, Stock Market, Biden

OK, there are always predictions of an imminent stock market correction. There is always someone predicting financial doom. Once in a while, one of them is right. To me, it feels like we may be due for just such an event. I wouldn't be surprised to see DJIA lose 30-50%. Stock prices are high, a major part of our workforce is idle, and we've had a record breaking bull market with a major Covid divot in the middle, and all that.

So, suppose that it does happen. Independence Day rolls around, and all the investment and retirement funds in the country are suddenly worth a lot less. People with a major investment component to their income take a serious hit. Wealth nationwide takes a big hit.

What is the political and social fallout?

There will be a great gnashing of teeth.

There will be a massive amount of talk about who did what and why and how.

Then life will move forward again with everyone being much poorer... except for the one or 2% that will thrive as the new Masters as you become a cog in the wheel of slavery.

What can you do now?

The money that you currently have still has value, use it accordingly to prevent your future enslavement.

Nothing changing here.

Congress will put a couple turbochargers on the printing presses and all will be good.

Killing the fossil fuel industry has not got to the stock market yet.

The DJIA P/E ratio is around 29. That says that on average, stock is really worth much less than people are paying for it. So if the crunch does come....

Voters is 2022 are seriously pissed off, and let it be known at the ballot box. Dems lose both houses of Congress.

Unemployment rises sharply in the summer of 2021, and bad guys take to the streets, but this time the riots are far more serious. Government responds with greater force, and restrictions on personal liberties.

In an effort to right the country's finances, the government drives interest rates to all time lows. One effect of this is to make the dollar much less desireable on the international market. The value of the dollar slides vs. foreign currency, and imported items rise in price.

The combination of stock market correction and low interest leaves investors with no place to go.

Gotta quit.... this is depressing me.

YOU ARE NOT WRONG, BUT I EXPECT A COUPLE WARS TO ADD TO THE MIX.

Undeniably the US military will be tested.

Money goes where it is welcome and well treated. Right now, I see people hesitant to start businesses based on that notion.

You currently have a government that believes a worker should get $30K a year no matter how low skilled that worker may be. Is that an artifact of smart governing? It sounds good if you are a huge company that wants to crush competing new start ups.

I see optimism crashing. With it, goes the market. And I am a big believer in the market. I retired in my mid 40s because of it.

You think any corporation with stock traded in the market pays less than minimum wage?

I made an average of 23% per year for the last 26 years in the stock market.

For 26 years, I have never "timed the market".

In the 2 weeks since Biden was inaugurated, I am up 10%.

Long term, I think the market is going to be ok.

For the individual investors:

Much depends upon the individual’s time horizon concerning which way the market goes within the short to medium period time frame.

Long term I’d expect it to rise.

You ought to be well into nine figures net worth by now.
Congrats.

He thinks a little harder than you Wheelz.

Doesn't Mickey D's trade Dumbass?

You should talk to your Doc, I think maybe the paralization is creeping into you mushy head

The last times the PE ratio’s were at this level were

1929
1999
2007

Make your own calls

Buy low, sell high.

I’ve taken some profit, but honestly, with the firehose of money spraying into the economy, worldwide, it’s hard to imagine the market dropping much, FOR A LONG PERIOD OF TIME. There’s just no other place for money to go but real estate, and if you think stocks are high.......

"9 figures", I wish.
I started out too poor.
228 times pocket change is still small.

Just depends on the availability of paper for printing.

Lol!

And yeah, I'll take real estate any day. Made that decision long ago.

Where I'm at also. I do think that after the next round of stimulus that I will move some Growth funds to Balanced funds to help ride out the next correction.

It has a chance of a +$50K day for me.

If the lefties don't totally screw it up, IMO, the economy is teed up for a good run. Get the vaccine out and it will take off.