Posted on 05/16/2024 9:31:16 AM PDT by ChicagoConservative27
The Dow Jones Industrial Average eclipsed 40,000 points for the first time in its history Thursday as Wall Street cheered slowing inflation and potential for lower interest rates.
The iconic stock index was up roughly 111 points shortly before 11 a.m. Thursday, reaching about 40,020 points. The Dow was created in 1895 and includes the 30 most prominent U.S. companies as determined by S&P Dow Jones Indicies.
The Dow is up 6 percent since the start of 2024 as investors eagerly await Federal Reserve rate cuts, which could add more fuel to the stock market. While the Fed has held off on rate cuts so far thanks to a combination of strong job gains and rising inflation, new data from the Labor Department showed price gains slowing for the first time since last year.
The Dow, Nasdaq composite and S&P 500 index all closed at record highs Wednesday.
(Excerpt) Read more at thehill.com ...
“Propped up government. All BS”
I’ve heard that for over 40 years, what’s that mean? The money still spends and just fine like always.
The supply of places to make money is huge, thankfully.
There are people that have car payments higher than my former mortgage, real estate taxes and homes owners insurance combined.
Wasn’t there some sob story article a few weeks ago about some stupid woman who had an $85K SUV and couldn’t make the payment after she lost her job?
We are going to be seeing a lot more of that.
Gains above the rate of inflation are real gains and they are always available, though some of them take years to come to fruition.
We know, however, the Dems are taking full credit and feeling the “halo effect” of being near something good that makes people feel fuzzy and warm.
I peeked at the disgusting Drudge (as I often do to see the enemy’s strategies). On the left side yesterday’s upper corner clickbaits were: Dow breaks records again. Inflation down. Gas prices finally edging downward. Picture was of Biden holding the distressed Trump in a headlock as debates were announced with Trump still tied up in court.
Sounds like a big Dem victory plausibility setup for their vote fraud.
We have to hope the economy will really crash and inflation will get worse BEFORE November. Or people will vote Dem and go back to the game on TV. Goodbye American Dream for all of us.
Once the bubble bursts then cash will be king.
Can't really beat 5%+ on 4-week US Treasuries for that portion of the portfolio. Buy them in a 25% laddered approach, so that 1/4 of them are maturing every week for good liquidity.
I would like to see Biden telling average voters that “the stock market is doing great,” while they are having trouble paying for groceries and rent.
No doubt, it's gotten way out of hand. High prices and high interest rates are a killer. I cannot see how middle class people are affording any new car over 30k, which is a small universe. Like you say, pick up trucks at 70-80k are common.
I’m still waiting for the inevitable crash to come
In which the markets recovered within a year or so and have since far exceeded previous highs.
Ditto with the 2007-2009 period in which the Dow plunged by over 50% (worst since The Great Depression). Within a few years, the markets were reaching new highs yet again.
This argues for the long term dollar cost averaging approach in investing. Choose a diverse mix of stocks in the S&P and stay in for the long haul, while contributing on a regular basis, so that you ensure you are buying on the downturns.
Warren Buffet/Berkshire Hathaway has $200 Billion in short term TBILLS making 5.3%.
I have slightly less than that in exactly the same.
Adjusted for inflation it is very high, which means it only has one way to go.
What do you suggest?
“A dollar amount that is not adjusted for inflation is meaningless.”
Tell that to the IRS when they come for your long held asset sales buck$.
They LOVE to tax inflation.
Can’t really beat 5%+ on 4-week US Treasuries for that portion of the portfolio. Buy them in a 25% laddered approach, so that 1/4 of them are maturing every week for good liquidity.
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Excellent advice.
Yup we are all just Jill and Joe Sixpacks. I don’t trust Wall Street. Right now I am in energy, gold, and a handful of Canadian stocks - being Canadian.
In a word, inflation!
It's all a gamble, as you suggest. Back in 2007/2008 I lost a third of my investment value. But it climbed back. So a few years ago, I pulled back from the markets into cash holdings, fearing a repeat of 2007/2008. Didn't happen, and I could have made more in the last few years. Cash is worth less than what it was, and the market is a way to keep pace with inflation - if you don't lose while gambling. So I'm continuing my conservative stance in the market, will continue fearing of a crash. Don't put all your eggs in one basket!
And the National Debt has passed $37 trillion for the first time so what’s the point. That Bidenomics is a miracle?
Yes. I hate the IRS. Forcing me to do RMD's, taking large amounts from retirement investments, boosting me into a higher tax bracket so they can steal more taxes from me. Meanwhile, the money won't buy what it used to buy because of inflation. Then the government wastes the money and keeps demanding more taxes.
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