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If anyone throws the old "we are the next Japan",and we are going to have deflation,don't buy bonds,soon they will yield zero.1)The Fed will DEVALUE the dollar in one way or another before they let that happen,which would cure the deflating housing market,foriegners would come out of the woodwork to buy cheap property in the U.S.,right now,at 3.4 times median income,U.S. housing STILL is overpriced.Historic average is 2.7 times,and always overshoots on the way up and down.2)Americans ain't like the Japanese,who live frugally,and save like mizers,moneys velocity is how economies recover,spending,not saving,and brother,do we spend,even if we don't have it! 3)If you believe in the economic recovery which isn't happening yet,IMHO,bond yields go up as the indices start to recover.Good Luck
M2 Velocity is way down; don't expect it to bounce back much. The boomers were spenders, now they are older and nervous, Gen-X hunkers down. We have a long wait until the millennials kick in their family formation spending.
M2 Velocity is way down; don't expect it to bounce back much. The boomers were spenders, now they are older and nervous, Gen-X hunkers down. We have a long wait until the millennials kick in their family formation spending.
Much of the money pumped into the banks just went to buy treasuries,short circuiting the flow and muting the bang for the buck the administration(s) were hoping for. If another stimulus comes down the pike,you can bet it will be rejiggered in a way that will make money flow.Tax rebates anyone!!!!
Much of the money pumped into the banks just went to buy treasuries,short circuiting the flow and muting the bang for the buck the administration(s) were hoping for. If another stimulus comes down the pike,you can bet it will be rejiggered in a way that will make money flow.Tax rebates anyone!!!!
Half the population doesn't pay taxes. Anything they try will be short term in affect. You can't get a 62 year old whose kids are out of the house to spend like they did at 48. Especially when 28% of the boomers were counting on having home equity in retirement to supplement their income.
The bottom half will spend it on necessities and the top half will save it.
Half the population doesn't pay taxes. Anything they try will be short term in affect. You can't get a 62 year old whose kids are out of the house to spend like they did at 48. Especially when 28% of the boomers were counting on having home equity in retirement to supplement their income.
The bottom half will spend it on necessities and the top half will save it.
Everyone pays Social Security /Medicare taxes,this makes up about 40% of someone paying at the 12% effective tax rate.And yes,all those people standing in line for iphones desperately needed them.Plenty of 62 yr olds are spending thier childrens inheritance.
Everyone pays Social Security /Medicare taxes,this makes up about 40% of someone paying at the 12% effective tax rate.And yes,all those people standing in line for iphones desperately needed them.Plenty of 62 yr olds are spending thier childrens inheritance.
EIC and in some cases the Child Tax credit gives back most if not all SS & Medi tax.
Look up the Consumer Expendature Report, spending by age is all there.
If I talk to 6 different financial advisors, I get six differnt answers. If I read six different financial articles in how to invest your money, I get six different answers. There are tens of thousands of stocks to buy, there are several thousand mutual funds to buy and you will get tens of hundreds of investors who deal in those markets to give you the advice on what to buy, all different of course.
What you need to do is read books, invest at your tolerance leveal , invest wisely and don't chase the market. We have never seeen this kind of financial market in the history of finance. I am 55 years old and I have been saving since I was 7 years old. When I was a teenage 40 years ago, I made 5 percent on my savings. Now we make 1.15 % on my savings.
If I talk to 6 different financial advisors, I get six differnt answers. If I read six different financial articles in how to invest your money, I get six different answers. There are tens of thousands of stocks to buy, there are several thousand mutual funds to buy and you will get tens of hundreds of investors who deal in those markets to give you the advice on what to buy, all different of course.
What you need to do is read books, invest at your tolerance leveal , invest wisely and don't chase the market. We have never seeen this kind of financial market in the history of finance. I am 55 years old and I have been saving since I was 7 years old. When I was a teenage 40 years ago, I made 5 percent on my savings. Now we make 1.15 % on my savings.
I would be surprised if you got that many different stories from advisors, they pretty much stick to the rational market theory. They need to agree to and explain the theory in many license exams and CFP exams.
Read The Myth of the Rational Market by Justin Fox and The Black Swan by Nasim Taleb.
I don't agree that this generation will not herit much. The boomers like myself didn't really inherit much other that say a house because Our parents mostly had pensio that died with them.After the 70's recession many actaully started a boom in small businesses whch many of their children are already starting to inherit or at least takeover.Then many also have money that will not disappear with their deaths ;like pensions. Sure there those that this recession really hurt but alot will survive.One has to remmeber that most miidle class live pretty much paycheck to paycheck with some savings in the 50-70's.They helped or financed their childrens college because loans were not available then like now.Many in their 40's thru late 50's are not doing that now for many reasons that include the high cost.Most boomers actaully learn more than given credit for in the 70's recession. Those since will learn from this one. Rememeber that the 70's recession saw a entire generation leave the markets. We are seeingmre people retiree i their 50's with teh bommer generation than ever before especailly their parents.
I don't agree that this generation will not herit much. The boomers like myself didn't really inherit much other that say a house because Our parents mostly had pensio that died with them.After the 70's recession many actaully started a boom in small businesses whch many of their children are already starting to inherit or at least takeover.Then many also have money that will not disappear with their deaths ;like pensions. Sure there those that this recession really hurt but alot will survive.One has to remmeber that most miidle class live pretty much paycheck to paycheck with some savings in the 50-70's.They helped or financed their childrens college because loans were not available then like now.Many in their 40's thru late 50's are not doing that now for many reasons that include the high cost.Most boomers actaully learn more than given credit for in the 70's recession. Those since will learn from this one. Rememeber that the 70's recession saw a entire generation leave the markets. We are seeingmre people retiree i their 50's with teh bommer generation than ever before especailly their parents.
The estimates are the boomers will inherit about $10 trillion. The generation that left the markets in the 70's never really entered them in the first place, they were the G.I. Gen.
They didn't need markets with 7-10% CD's.
The reason we are seeing more boomers retire is there are more boomers, plus women are leaving the workforce faster and they were the first generation to have been fully in the workforce to start with, now with the kids grown they don’t need to work, hence another reason that boomer spending will drop.
I see what you are saying to a point but you need more evidence to backup your points.
Its exactly the sort of simplistic mentality towards investing in this thread that will make other people a lot of money. Western civilization isnt going to end because of this crisis. That means there are young, tender, shoots out there that will reward you richly if you have the guts to invest in this market.
Now I grant you listening to idiots like Kramer who try to push you into blue chips, that is a recipe for disaster.
The rules have changed. The advantage the small investor has is the ability to take intelligent risks on potentially high reward companies which have room to grow because of innovation, new technologies. The mutual funds are paralyzed with fear and wont stray much from the Walmarts and the Krafts.
The little guy is more nimble, and if he is smart can make a lot of money in this stock market.
If you're not willing or able to do the type of research and legwork necessary to invest in this market then you shouldnt be in the market. All blue chips do horribly when their growth is stunted.
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