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It is ot all doom and gloom though . You have to have your investments in the right place. Dont have to have every stock in the right place, just enough to offset any losses. Today was a good example for me . The total stock market funds lost .73%, but today I lost $8.46. In other words I lost .00%. I had some steep losses though, like midcaps are getting pounded harder than the largecaps and should have withdrew some of it 3 weeks ago. However, I have a lot of gains today. All my high dividend ETF's made money today in a solid down market. Ishares( HDV ticker) gained .66%.!! That is a fantastic gain for a day like today. The high dividend stocks have been left in the dust the last 10 yrs. and now it is catch up time. The reason they are doing so well cause many are actually undervalued and many give 3 to 4% in dividends. Food did real good today and so did utilities. This says many are done with the high flyen growth stocks . Tyson, Kroger, Kellogs, General Mills Smuckers Jelly did very good today. When the SHTF , people buy food.
Last edited by ihookem; 01/27/22.
But the fruits of the spirit is love, joy, peace, patience, kindness, goodness,faithfulness, Gentleness and self control. Against such things there is no law. Galations 5: 22&23
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Joined: May 2015
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I'm missing something. If CPI is around 7% and the 10 year is just above 2% why sell equities with the Fed tightening? Even with a huge increase in rates you won't beat inflation with a bond. Where are big funds taking their money?
@jameslavish
If you work 40 hrs/wk: at 5% inflation and after 5 years, you need a 28% pay raise or to work 44 more hours (*one full extra week* per month+) to make up the difference.
This is inflation
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Joined: May 2004
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I'm missing something. If CPI is around 7% and the 10 year is just above 2% why sell equities with the Fed tightening? Even with a huge increase in rates you won't beat inflation with a bond. Where are big funds taking their money? They are mostly taking their money in to safer , higher dividend stocks . These stocks, many are consumer staples like Proctor& Gamble, Clorox, 3M, food, and a lot of oil stocks. These are the stocks that have been way under valued for a long time, even 10 yrs. cause the smart investors knew that growth stocks would do good with sinking interest rates cause many growth and tech companies have a lot of debt but were in a good position to do real well . The reason they were in that good position was cause they lost 85% of their value in the 2000 " tech wreck". Those tech and growth stocks took a beating like I've never seen. They were cheap , real cheap form 2002 to 2006? , then the 2009 crash came, made them cheaper. When the bottom, April 2009 came, they were so beat up there was no where else for them to go but up, much like Energy stocks were about a year ago. So many put their easy money in growth for 10 yrs that they all forgot about the older stocks. Then 2004 came the oil crash . Many investors put even more in tech and growth the last 10 years that it became WAY WAY over valued, every bit as over valued as in 1999. The place now is high dividend , older companies that literally no one wanted till 2021. With 0% in the bank, 3 to 7% dividends with an undervalued price tag is very attractive. Verizon, Rio Tinto, 3M, most food like Kelloggs, general Mills , Smuckers Jelly, Tyson, maybe even Heinz Catchup Campbells Soup, too are very reasonably valued, and we will eat , or die is my saying , so food stocks it is. Kroger was cheap , Canagra brand are very reasonably priced. Mining companies are dirt cheap, and some are completely out of debt and sitting on 52 week lows . WIth copper at $4.50 lb. I think mining companies are safe. Rio Tinto pays 10% dividends and should be very safe. Verizon has a safe dividend of about 5% and has been raising their divies for 20? yrs.? Just have to put money in companies that no one thinks of but use every day. . For too long every goof ball was buying Amazon , Apple, Facebook . I dont buy those stocks. I buy good solid companies that pay dividends most of the time.. I did buy Spirit Airlines though, and already regretting it but they should go up soon.
Last edited by ihookem; 01/27/22.
But the fruits of the spirit is love, joy, peace, patience, kindness, goodness,faithfulness, Gentleness and self control. Against such things there is no law. Galations 5: 22&23
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Joined: Dec 2010
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Apple blew out earnings again today. Thank you
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Joined: May 2015
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I like your logic ihookem, I just don't see how the fed's policy triggered the group think. I added NUE on what looked like a good deal.
@jameslavish
If you work 40 hrs/wk: at 5% inflation and after 5 years, you need a 28% pay raise or to work 44 more hours (*one full extra week* per month+) to make up the difference.
This is inflation
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Joined: Feb 2013
Posts: 6,458
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I know my SP100 portfolio lost a sickening amount of value. Going to retire in a month, or maybe June. Kinda scary, but I have an easy 7 year liquid reserve giving 3.2%. So I don't have to sell stock at these biden killing America levels. Still scary.
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Joined: Nov 2008
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Campfire Ranger
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OP
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Stupid Facebook dragging the entire market down. It's pretty sad when one stupid social media web site, that doesn't even make anything, can impact the entire market.
"Hey jackass, get your government off my freedom." MOLON LABE
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Ouchy 4%
If you are not actively engaging EVERY enemy you encounter... you are allowing another to fight for you... and that is cowardice... plain and simple.
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Joined: Nov 2008
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Campfire Ranger
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"Hey jackass, get your government off my freedom." MOLON LABE
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My portfolio gained .31% today. I have a lot of Energy, Real estate , food, and utilities did very good today, you know, things we need instead of Facebook and snapchat.
But the fruits of the spirit is love, joy, peace, patience, kindness, goodness,faithfulness, Gentleness and self control. Against such things there is no law. Galations 5: 22&23
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