All Time High Stock Market

[Fordguy]

Markets are inflationary just like everything else

Wait a minute... Old guys? mid to late 50's?! .

I remember when 50 was old... lol.

 

[MattB]

Yes, but eventually housing prices will revert to the mean. This will destroy the lives of many Americans.

And what will cause that? The Fed lowering interest rates in 2024 will provide upward pressure on home prices. High interest rates have been putting downward pressure on new supply which supports housing prices. I think I know what I am missing here, but if you have insight as to economic factors that will cause a decline in home prices I would love to hear it.

 

[Scotto]

https://www.reuters.com/markets/us/...el-more-us-stock-gains-fed-pivots-2023-12-15/

Worth reading.....

 

[Rich M]

Post #55, 50 year mortgage. Roll all that debt up and put it into one nice little package and service it for the rest of your life... It will happen, people are stupid, once a few go that way, the lemmings will follow.

That's why we have 7-10 yr vehicle loans now. They couldn't charge $60k for a truck if we only had 5 yrs loans - no-one would pay that much.

If you want to "own" your property, I'd suggest keeping the mortgage term to more like 15 years, which admittadly is tough to do with the combination of RE prices, rates and incomes.

Nothing wrong with a 30 yr mortgage. The catch is about buying your lifetime house. Folks bop around a lot more now than when the 30 yr mortgage was invented.


@MallardSX2 - I used to live in a blue state and they called it personal property taxes - from $500 and up to own a car, boat, anything registered. It is something to consider when moving.

 

[Rich M]

And what will cause that? The Fed lowering interest rates in 2024 will provide upward pressure on home prices. High interest rates have been putting downward pressure on new supply which supports housing prices. I think I know what I am missing here, but if you have insight as to economic factors that will cause a decline in home prices I would love to hear it.

Affordability - there is a point at which the middle class can no longer afford stuff, and then stops trying to get stuff, allows themselves to slide backwards cause it aint worth the effort to "get ahead" as it is out of reach.

Houses can keep going up, but more and more corporations will own and folks rent cause folks can't afford em. Heading towards that "you won't own anything and will be happy" reset concept.

 

[Hnthrdr]

https://www.reuters.com/markets/us/...el-more-us-stock-gains-fed-pivots-2023-12-15/

Worth reading.....

Good article, makes sense also what will help keep RE super high, cash rich will pour back into the market if they can make a buck

 

[Dos Perros]

Wages are not keeping pace with inflation. That's a concern.

 

[Rich M]

Wages are not keeping pace with inflation. That's a concern.

They didn't back in the 1970s with Carter either.


As a boss, had a mid-50's woman get pissy cause we didn't give her a 10%+ raise to keep with inflation. Asked her if her husband (self employed with work crews) gave his workers a 10%+ increase. Aint heard nothing since.

 

[MattB]

https://www.reuters.com/markets/us/...el-more-us-stock-gains-fed-pivots-2023-12-15/

Worth reading.....

That article is spot on. As interest rates and inflation decline, yields on short-term investments will follow suit. This will drive those who are holding cash/cash equivalents to seek alternate investments which will likely bid up equities.

 

[ETtikka]

The biggest misconception is that the avg American life is affected by the stock market, most are not, many 401ks fluctuate but won’t impact the majority of lives, inflation absolutely effects everyone that is low or middle class

 

[Rich M]

The biggest misconception is that the avg American life is affected by the stock market, most are not, many 401ks fluctuate but won’t impact the majority of lives, inflation absolutely effects everyone that is low or middle class

It does affect retirees and the amount of money they can withdraw.

 

[Beendare]

Sad that this is political and being manipulated.

So inflation is over? Yeah right.

WSJ says its the most crowded trade on Wall St. ARKK is up 46% since October- wow. Something tells me you had to be a WH staffer to see that coming.

I used to jump on these trends and pick up a few points…I may not bother here.

 

[HornPorn]

The biggest misconception is that the avg American life is affected by the stock market, most are not, many 401ks fluctuate but won’t impact the majority of lives, inflation absolutely effects everyone that is low or middle class

As a financial advisor, I have many middle class clients who receive monthly distributions, based on the value of assets in accounts as of 12/31 of the previous year. If the market holds current levels, some are going to get an extra $500 per month next year. You think that doesn't impact them?

 

[ETtikka]

As a financial advisor, I have many middle class clients who receive monthly distributions, based on the value of assets in accounts as of 12/31 of the previous year. If the market holds current levels, some are going to get an extra $500 per month next year. You think that doesn't impact them?

understood; that is why I said most people, not all. Anyone in a position to have enough investments to recieve distributions are not affected as much by inflation, that I all was getting at

 

[TaperPin]

A coworker cashed out his 401 at the bottom of the market a while ago because of some bs recession fear mongering on news max. So many folks I used to think of as smart have turned off their common sense and believe whatever the talk show guys are being paid to promote by billionaires.

 

[eamyrick]

A coworker cashed out his 401 at the bottom of the market a while ago because of some bs recession fear mongering on news max. So many folks I used to think of as smart have turned off their common sense and believe whatever the talk show guys are being paid to promote by billionaires.

Was just talking about this with a friend. 2 people we know who are very intelligent pulled money out of the market because it was about to tank and now it’s up 20%. I don’t doubt it will tank again but I’m no where near needing the money and trying to time a dip doesn’t seem to work

 

[Billinsd]

It’s more like gambling anymore. Overall, long term it keeps going up. We are living in very uncertain times for sure!!

 

[Afhunter1]

I haven’t changed my investments in years and I’m still 7% off my personal high.