Stock market on fire

[wired]

There are many ways to look at it.....like?
Assuming that you still have a job and your wages will keep up with the hyperinflation.

And if not?

Aloha, Mark

PS.....also look at what the CBO is saying about what a $15 an hour min wage will do?

900,000 lifted out of poverty
While 1.4 million more unemployed

LOL......IF the Govt really wants to help more people out of poverty. Just, draw the poverty line at a lower number.

That's a joke folks.

Theres always a lag but Its a given that fixed mortgage costs do indeed become a lesser percentage of individual income. Not talking runaway massive inflation but 15% annual inflation over 7-8 years with wages lagging 1-2 years behind really does knock the real payment down on a fixed mortgage to a fraction of what it was . Of course everyone else in the game looking to purchase on a new mortgage is not paying those 70's style 15-18% mortgage interest payments and credit card debt would be through the roof. Prices go down and you ride it out where you are.

One of the things I found interesting during the 2008 financial meltdown was the number of people who were defaulting on their mortgages because their Variable rate mortgages had reset. I could never get anyone to tell me what their rates reset to. 4-5% was common at the time and I clearly remember when my first house was at 8 1/2% but I never heard of anyones mortgage getting even close to that. . I always figured it had absolutely zero to do with higher rate resets and folks were defaulting on their mortgages because they were under water and didnt want to pay double the mortgage on houses that weren't worth what they were paying. The interest rate just being a piss poor excuse.

 

[ma96782]

STORY TIME.
My first home was purchased in Hawaii. And Jimmy Carter was the president back then. I can remember that the 30 year fixed home mortgage was in the double digits. I couldn't even afford to save enough (monthly) to offset the monthly increase in the price of the home. My dream of homeownership was quickly fading away. So, I made my purchase using one of those new (at the time) FHA deals. Where the down payment was small (in comparison to the usual 20% down) and there was a "known" yearly reset/increase. The selling point was that.....your salary was probably going to increase yearly too. Cough, cough....

Anyway.....after making the purchase (and as quickly as I could afford it)......I refinanced to a fixed mortgage.

Some may remember this era.

When Volcker ruled the Fed, 'people thought they'd never buy a home again'

Paul Volcker's greatest legacy was breaking inflation with shockingly high interest rates, but he turned the housing market into a nightmare.

www.cnbc.com

+++++++++++

But really......who cares? Everyone has to make their own decisions........on what's right for them.

YES.....IMHO, buying a home.....even while using a fixed/affordable mortgage is helpful (though it's not always a guarantee of anything).

Aloha, Mark

PS.....and I have another story (that I'll save for another time) about expecting a yearly raise in your salary.

 

[DeanfromOregon]

STORY TIME.
My first home was purchased in Hawaii. And Jimmy Carter was the president back then. I can remember that the 30 year fixed home mortgage was in the double digits. I couldn't even afford to save enough (monthly) to offset the monthly increase in the price of the home. My dream of homeownership was quickly fading away. So, I made my purchase using one of those new (at the time) FHA deals. Where the down payment was small (in comparison to the usual 20% down) and there was a "known" yearly reset/increase. The selling point was that.....your salary was probably going to increase yearly too. Cough, cough....

Anyway.....as quickly as I could......I refinanced to a fixed mortgage.

Some may remember this era.
<snip good stuff>

I do remember. My first job I enrolled in a 401K from Wells Fargo that had a 10% interest rate fixed. This was in 1981 or 2 when interest rates were 18%. I could only afford $25 per paycheck, and I only was able to make deposits for 6 months or so before they locked it down.

Got my statement and it's ~$55k ish, it matures in 4 years when I turn 60, should be around $70k by then. Best investment I ever made.

 

[jblake00]

Sold a Call option with OKE yesterday for 44.6% return. Not to bad for only being in the play for a week.

 

[The Heretic]

 

[The Heretic]

 

[ma96782]

I was thinking today....

Why is the market on fire? OK, Ok, ok.....maybe not today (02-23-2021) exactly but.....

Consider this......

The President has said that he wants to give away (forgive) $10k in student loan debts. And, while this pandemic continues, there is also a hold on the student debt interest accumulation. Rrrrright and the kids who owe the debt are supposed to be smart. Yeah, they went to University.

So.....even if they don't get the free $10k forgiven.

Why not just......invest the money that would have been paid to the loan companies and instead invest the money in the stock market?

Rrrrright.......and It's not like the banks are giving you any meaningful interest in a savings account. Besides.....there are plenty of opportunities to make some "easy money in stocks".

"Yeah.....I heard that stocks in _______ are about to take off. Besides..... Congress might even increase the forgiveness to $50k!! It's all about gambling anyway."



Aloha, Mark

 

[ma96782]

Today 02/24/2021

Another record close for the DOW. Up 424.51, at 31,961.86.

Aloha, Mark

 

[wired]

Lots of volatility in cryptos right now. 2-3% per day easy money.

 

[nosbocaj]

Looks like Gamestop round two might be on. Closed at $91.71 and is going insane after hours (hit $200 at one point). I made some good money on it the first time around and bought back in during the lull. Only have a few shares this time, but excited to see where it goes again.

 

[wired]

Made 22k on doge and ethereum today. Damn.

 

[ma96782]

Made 22k on doge and ethereum today. Damn.

Yikes.....even at today's inflated prices.....that will buy you a whole lot of ammo or primers.

Aloha, Mark

 

[wired]

Yikes.....even at today's inflated prices.....that will buy you a whole lot of ammo or primers.

Aloha, Mark

Wild ride this week. I had made big chunk on tesla last week. Cashed out 100K and gave it to old lady to never be seen again. Put 100K in and Ive been riding cryptos all week. Made 9K yesterday and 22k today. Just sent those over to her account and kept the 100k seed in robinhood. I'm happy if I can pull 2% a day but man the volitility has been strong and really predictable the last few days. Buy by 10 AM and sell by 8PM .Today was just bizarre.

Its not gambling. I swear ).

 

[ma96782]

Whatever it is you're doing.....

YOU'RE DOING GREAT!!!

Aloha, Mark

 

[ma96782]

And there we go.......
So far today 02-25-2021......the DOW is down big -536 at 31,425.

Aloha, Mark

PS....DOW closed -561 at 31,400.

 

[wired]

Banner day to make money in cryptos. They're all down 10%

 

[arakboss]

Banner day to make money in cryptos. They're all down 10%

What about the poor saps who bought yesterday?

 

[wired]

What about the poor saps who bought yesterday?

It's not a buy and hold sort of thing. Get in early when the price looks good. Throw a bunch down and get out when it starts to drop. 1% here, 2% there. Maybe 4-5 times a day. As soon as it starts trending up buy. As soon as it starts moving down sell.

Or you can do like what I did today. Bought a crapload of Dogecoin at 5 cents. I have a automatic limit sell set for 5.2 cents. It'll hit that at some point. Maybe even go higher but I'll still make 4% for the day. Not bad.

 

[The Heretic]

I am going to put about $10K that I earned in self-employment this year into a Solo 401K and go hard into the stock market with it. Pay no taxes on that income (except double FICA which has to be paid on all earned income?) and earn some $ in the stock market long term.

Wish I could put more in (I can put 100% of self-employment in up to $26K and then 22% more after $26K), but budget ran out on the project and client cut me off. So now I am back on UI benefits for the foreseeable future (probably until September) and then I will just be fully retired unless I get some piecemeal part time only contracts I can do while traveling (hoping travel restrictions life this fall with vaccine cert).

 

[wired]

And just like that Doge pays off.
And the principle goes right back into Bitcoin for a quick 2%..

My youngest son, who's 15, and I were talking about this the other day. I've made enough in the last week to pre pay his college. Some of his gamer friends who have aged out of it are doing the same thing with cryptos now and are sitting on 6 figure accounts at 16years old. .

I swear this is just too freakin easy. The volatility is huge. All of the cryptos dropped like a stone today. Bought ethereum as soon as it started to move at $1430 and put it on a limit sell at $1498. Why $1498? I'm conservative and $1500 is where it stalls. Thats where the institutional guys have their limits and it can sit there for a while and potentially ( absolutely ) drop again for a few hours . It'll go higher overnight probably but thats a cool 5 grand for like zero work in 3 hours.