Posted on 10/28/2021 6:03:12 AM PDT by maggief
The numbers: U.S. gross domestic product growth decelerated to an 2% annualized rate in the third quarter, down from a 6.7% rate in the April-June quarter, the Commerce Department said Thursday.
Economists polled by the Wall Street Journal had forecast GDP to slow to a 2.8% rate.
This is the slowest growth rate since the 2020 recession.
Key details: Consumer spending rose a scant 1.6% in the third quarter, well below the 12% rate in the prior three months.
(Excerpt) Read more at msn.com ...
That’s a very good thing. Will help rein in inflationary impulse going forward if the fiscal stimulus starts to fade.
I'm about 25% in bonds - they earn crap, but if the SHTF they won't go to near zero like my stocks.
Only the people who don't have to worry about stuff like this would know the answer.
I'm 63 and may be getting forced to retire due to vax mandates - may be a blessing in disguise as I'm only living in this nasty Blue state because they pay me very well.
(I'm not your run-of-the-mill whore - I'm a high-class prostitute...)
You also need to factor in the multiple billions of dollars fleeing China as their investors look for someplace to hide their illicit fortunes before Xi catches them. This will just acerbate the situation in China, causing their crash to be even more spectacular.
That is when our market will go belly up, for awhile. The good news is that with a little ramping up, we can produce the stuff we currently buy from China. China cannot reproduce the funds we provided them.
That isn’t necessarily true. An inflationary SHTF scenario would wipe your bonds very quickly.
If you do, make sure its shorter duration bonds. Give up a small amount of yield (1%) but far less risk of losing a ton in bonds in a very elevated inflationary environment than long and intermediate bonds. Personally, I’d rather get 0.6% in a HY online savings account with 100% flexibility than 1.5% and potentially have my bond fund drop 50%+ in principal if interest rates rise significantly, especially if equities to drop - could be a good entry point for deployment.
Exactly, inflation is kryptonite to bonds.
How do you get deflation out of a 30-50% rise in prices?
“I have 24% of my portfolio in bonds. Should it increase to 33%?”
I’ve been using preferred stocks and ETFs instead of bonds for years now. Better yields even after taxes. I get 4-7% dividends.
Then by definition we have a rogue government that doesn’t honor the Constitution.
So why should we recognize their authority?
I’ve also have a Franklin Templeton Treasury Bond Fund for years, yields 3%. But there’s a fat upfront load to get in.
Yup. And with the way the BLS calculations inflation, even TIPS bonds don’t fully protect you.
I’d prefer defensive stocks, perhaps like PG with a yield over 2%, long enough to hold thru a recession.
When growth is strong, wahh-wahh about inflation.
When growth weakens, wahh-wahh about the economy.
The big thing is to find something to wahh-wahh about every day.
Don’t worry!
The government has assured us that this situation is only temporary and things will get better next year.
They just need to print up some more money so people have more money to spend, right?
...commented on wrong thread :)
I’m sticking all of my bond $ and some of my equity into real estate. Some direct investments and some through sites like Fundrise and Crowdstreet….more direct investments but I realize not everyone wants to own rentals directly
Should note I aim for 8%+ year 1 cash yield on rentals and usually do better, plus principal pay down and appreciation
diversification is your friend.
QUICK, we need another 2.5 TRILLION in STIMULUS
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