Coronavirus - Stock Market Crash / Economic Impact

[SOMEPARTS]

Everybody is pretending a loan default tidal wave is not coming - but it is. What's next - a debt jubilee for everyone who owes what they can't pay?

The NPR story below starts reporting the news and then ends up saying there is not enough being done, haha. Where is this money coming from? It's coming from future higher tax rates and dollar printing/devaluation....so if your 401k goes up 25% but the value of the dollar also falls 25% is there a net gain or are you being played?


https://www.npr.org/2020/06/03/867856602/millions-of-americans-skipping-payments-as-tidal-wave-of-defaults-and-evictions-

[gib]

True, but like warriors we will keep buying. Now is the time that separates the men form the boys.

And as I told you. The men who invested are now up big time. The girlie men who panicked and either sold off or failed to buy lost out big time. What a massive displacement of wealth we saw over the last 3 months!

[gib]

As an investor, we love panic. Its panic that produces volatility, which in turn creates very rare and very profitable opportunities.

Oh how I love looking at my earlier quotes. I hope some of you all learned a lesson...

As for me, I was already 70% in the market. I piled in with another 20%. Not perfect timing of the bottom but close. Up 27% overall on my corona investment, not including dividends also received.

[gib]

The market rally has very little to do with the "funnymentals" of these companies. 

It's ALL about the Fed and their funny money machine. They create money (really just 'currency') from nothing and throw it into the market and bailout whoever they want to.  The Fed now OWNS the market.  They no longer need permission from congress to do what they're doing like they did in 2008. 

As long as the USD continues to be the worlds reserve currency, the US stock market will continue to rise (nominally).  As the USD becomes more worthless over time, it's reign will eventually end, then the Fed will be out of ammo.  That is when the real shit hits the fan.   

I've been saying this for years and I'll say it again... you guys better have some physical PMs (gold and silver) in your possession as insurance, because that's the only physical asset that doesn't have any counter-party risk.  It holds value and protects your purchasing power.

IF... everything goes to hell and we get fucked back to the stone age, ammo will be the new gold.

Bitcoin is the answer to your problems my friend. And you know it.

xxx Blip.

[gib]

So your confirmation bias is telling you it won't happen, because hasn't happened... good luck with that over the long term. 

TPTB are going to do anything and everything to keep the system propped up.  I would not be surprised if trillions turn into quadrillions.  It seems like it will go on and on, but there is no way this phony economy and fiat, debt-based financial system can continue indefinitely. 

No paper PM, only physical PM in my possession... several well hidden fireproof safes... home alarm... no earthquakes here... and I am the armed guard.   People who store their PMs in a private vault are going to be in for a rude awakening.  You think some idiot with a gun getting paid $15-20 an hour to stand guard over your PM is going to hang around when the SHTF?  The people at companies like Brinks will be raiding those vaults and taking off, never to be seen again.

Bitcoin is the answer to your problems my friend. And you know it.

xxx Blip.

[loco]

Everybody is pretending a loan default tidal wave is not coming - but it is. What's next - a debt jubilee for everyone who owes what they can't pay?

The NPR story below starts reporting the news and then ends up saying there is not enough being done, haha. Where is this money coming from? It's coming from future higher tax rates and dollar printing/devaluation....so if your 401k goes up 25% but the value of the dollar also falls 25% is there a net gain or are you being played?


https://www.npr.org/2020/06/03/867856602/millions-of-americans-skipping-payments-as-tidal-wave-of-defaults-and-evictions-

Everybody is pretending?

Banking giant Wells Fargo, one of the nation’s leading auto lenders for new and used cars, will no longer lend to many independent auto dealerships as a result of the financial risk that has resulted from the coronavirus pandemic.
https://www.foxbusiness.com/personal-finance/coronavirus-wells-fargo-indirect-auto-lending


And BTW, those who didn't buy into the panic, doom and gloom, and fear mongering, and held on to their stocks and bought even more are doing great right now.   

[SOMEPARTS]

Everybody is pretending?

Banking giant Wells Fargo, one of the nation’s leading auto lenders for new and used cars, will no longer lend to many independent auto dealerships as a result of the financial risk that has resulted from the coronavirus pandemic.
https://www.foxbusiness.com/personal-finance/coronavirus-wells-fargo-indirect-auto-lending


And BTW, those who didn't buy into the panic, doom and gloom, and fear mongering, and held on to their stocks and bought even more are doing great right now.   

It's like being "ahead" in poker.

[gib]

And BTW, those who didn't buy into the panic, doom and gloom, and fear mongering, and held on to their stocks and bought even more are doing great right now.   

Yep - I am possibly poised to break the 50m mark today. Sitting on 48.816m as of now!

[loco]

It's like being "ahead" in poker.

Only if you time the market, which is the opposite of what those people did.  So no, it's nothing like being "ahead" in poker.

[gib]

As a retired person, my entire income is reliant on a healthy economy. Since there is nothing that I can do to change the current state of affairs, I'd rather not think about the future. One thing is certain most of us if not all of us are going to be affected in someway by the economic fallout from the CVID-19 pandemic of 2020.

One more thing is also certain. Life, business, finance, and commerce goes on...

[loco]

Yep - I am possibly poised to break the 50m mark today. Sitting on 48.816m as of now!

Good for you, but what then are you doing posting on getbig?  You should be in a hot tub with a bunch of big booty blondes, drinking champagne and stuff.

[SOMEPARTS]

Only if you time the market, which is the opposite of what those people did.  So no, it's nothing like being "ahead" in poker.

Gambling is more realistic. At least in poker you actually get access to your gains instead of the casino(govt) holding them hostage "tax deferred".

It's not a gain until you realize it and no matter what timing will be an issue because the exit terms are not up to the investor. The rest of the stock market valuation game is just about as factual as bitcoin at this point. The numbers mean nothing in relation to how things were measured before these huge bubble cycles.

[Mr Anabolic]

Bitcoin is the answer to your problems my friend. And you know it.

xxx Blip.

I don't have any problems.  You assume waaaaaaay too much.... sociopathic fucktard

[Mr Anabolic]

Oh how I love looking at my earlier quotes. I hope some of you all learned a lesson...

As for me, I was already 70% in the market. I piled in with another 20%. Not perfect timing of the bottom but close. Up 27% overall on my corona investment, not including dividends also received.

One day buying the dip won't work anymore. 

If you had bought calls (like I told you to) you would've been up 10-100x that. 

[Hypertrophy]

Yep - I am possibly poised to break the 50m mark today. Sitting on 48.816m as of now!

Your prediction track record sucks. When is Bostin Lloyd "going down", lol

[Mr Anabolic]

Yep - I am possibly poised to break the 50m mark today. Sitting on 48.816m as of now!

Modest too! 

[gib]

One day buying the dip won't work anymore. 

If you had bought calls (like I told you to) you would've been up 10-100x that.

True. But I stick to what I know. Companies already have enough leverage. So I don’t want a leveraged exposure to a company with leverage. Yes can make more but can also go very wrong. I can be very confident that a company is undervalued but not as confident as to when a company’s fair value will be realised. Buffett rule #1 - don’t lose money.

[Mr Anabolic]

Gambling is more realistic. At least in poker you actually get access to your gains instead of the casino(govt) holding them hostage "tax deferred".

It's not a gain until you realize it and no matter what timing will be an issue because the exit terms are not up to the investor. The rest of the stock market valuation game is just about as factual as bitcoin at this point. The numbers mean nothing in relation to how things were measured before these huge bubble cycles.

No, they're investing geniuses!   

There is a plethora of idiot savants who ride the coat tails of the federal reserves funny money machine.  They claim they're "investors" and pretend to know something you don't.  It's hilarious really.

[loco]

Gambling is more realistic. At least in poker you actually get access to your gains instead of the casino(govt) holding them hostage "tax deferred".

It's not a gain until you realize it and no matter what timing will be an issue because the exit terms are not up to the investor. The rest of the stock market valuation game is just about as factual as bitcoin at this point. The numbers mean nothing in relation to how things were measured before these huge bubble cycles.

Gambling is more realistic?  Really?  Is that what you advice young people, to play poker instead of investing in a 401K, IRA, Roth, HSA, and/or a taxable investment account?

In poker you get access to your gains, only if you have any gains at all.  And after all your losses, you still pay taxes on any occasional, lucky "gains."

You have a problem with investing in the stock market in general, or just with tax deferred accounts?  Why did you put it in quotes?  Even if you ended up paying more taxes after retirement than you would before, it's still tax deferred.

Tax deferred accounts make it possible for people to invest more money earlier in life, which gives them more time in the market. Time in the market plus contribution rate are two of the best ingredients for success in stock market investing.

Either way, not all investment accounts are tax deferred, and tax deferred accounts can be converted to Roth at a time when you are in a lower tax bracket.

HSA accounts are 100% tax free, as long as you spend the money (principal and gains) on medical expenses.  Everyone has medical expenses, and they are high, especially in retirement.

Then of course there's the taxable investment account.  You pay taxes yearly on dividends, and you pay taxes on gains only when you sell.  You get a tax credit if you sell at a loss.

All better than poker, but nowhere nearly as fun.   

[gib]

Good for you, but what then are you doing posting on getbig?  You should be in a hot tub with a bunch of big booty blondes, drinking champagne and stuff.

Here’s the funny thing. I was feeling pretty bad during first few months of covid. I’m a rational guy but it’s a sick feeling in the gut when you are down a mill or more in day. Worst day I think was around nearly 3m in a day. So at times like that one really is not in the mood for pussy, blowjobs or coke. And one really needs to keep a clear head to prevent any rash decisions. For me it was a time for reflection and lots of thinking. I forced myself to buy in more. Not easy to do but the right thing nevertheless. That’s the whole point of having some cash on the sidelines. I’m up now and have taken some small gains over the last week. Feeling better now

[gib]

Your prediction track record sucks. When is Bostin Lloyd "going down", lol

He did a deal with cops. Ratted to save himself.

[Mr Anabolic]

Here’s the funny thing. I was feeling pretty bad during first few months of covid. I’m a rational guy but it’s a sick feeling in the gut when you are down a mill or more in day. Worst day I think was around nearly 3m in a day. So at times like that one really is not in the mood for pussy, blowjobs or coke. And one really needs to keep a clear head to prevent any rash decisions. For me it was a time for reflection and lots of thinking. I forced myself to buy in more. Not easy to do but the right thing nevertheless. That’s the whole point of having some cash on the sidelines. I’m up now and have taken some small gains over the last week. Feeling better now

Way to go Captain Hindsight. 

[nzmusclemonster]

"Be greedy when others are fearful, be fearful when others are greedy."

The fear mongering is getting louder and is coming from the people that didn't dollar cost average down, or sat there trying to time the market.

Most have no concept of what trillions of dollars means.

I wrote this in mid April, deep in covid time.

For the rookies that panic sold and held cash, read the quote I put in there from Warren buffett and look up what dollar cost averaging is.

[SOMEPARTS]

Gambling is more realistic?  Really?  Is that what you advice young people, to play poker instead of investing in a 401K, IRA, Roth, HSA, and/or a taxable investment account?

In poker you get access to your gains, only if you have any gains at all.  And after all your losses, you still pay taxes on any occasional, lucky "gains."

You have a problem with investing in the stock market in general, or just with tax deferred accounts?  Why did you put it in quotes?  Even if you ended up paying more taxes after retirement than you would before, it's still tax deferred.

Tax deferred accounts make it possible for people to invest more money earlier in life, which gives them more time in the market. Time in the market plus contribution rate are two of the best ingredients for success in stock market investing.

Either way, not all investment accounts are tax deferred, and tax deferred accounts can be converted to Roth at a time when you are in a lower tax bracket.

HSA accounts are 100% tax free, as long as you spend the money (principal and gains) on medical expenses.  Everyone has medical expenses, and they are high, especially in retirement.

Then of course there's the taxable investment account.  You pay taxes yearly on dividends, and you pay taxes on gains only when you sell.  You get a tax credit if you sell at a loss.

All better than poker, but nowhere nearly as fun.   

This sounds like a Motley Fool investing 101 article. 

I am giving no advice. I will say the 401k system was never about enriching small investors and that it will not be around in the exact capacity you quote in the long term because of the crazy financial things that are being done now. They can change the rules and they will - Joe Frickin' Biden could become POTUS and enact the New Green Deal - that chance would be enough for me, haha. To ignore this huge counterparty risk is a mystery to me but I'm a contrarian. I'm not writing a book about all of it on here. If you believe a majority of your wealth in the hands of the people who run this game is safe, go for it. At one time I was a believer as well....just seen too much at this point.

[loco]

This sounds like a Motley Fool investing 101 article.

To you it may sound like that because you may have very little to no experience taking advantage of all the different types of investment accounts and investment strategies.  For those who do take advantage of all these long term, this is common knowledge and it's very simple.  It doesn't take a financial expert to become familiar with these and take advantage of them to grow net worth.  Anybody can do it.

I am giving no advice. I will say the 401k system was never about enriching small investors and that it will not be around in the exact capacity you quote in the long term because of the crazy financial things that are being done now. They can change the rules and they will - Joe Frickin' Biden could become POTUS and enact the New Green Deal - that chance would be enough for me, haha. To ignore this huge counterparty risk is a mystery to me but I'm a contrarian. I'm not writing a book about all of it on here. If you believe a majority of your wealth in the hands of the people who run this game is safe, go for it. At one time I was a believer as well....just seen too much at this point.

Clinton was president for 8 years, and Obama for another 8.  401K is still around, and the only changes have been for the better.  Now there is 401K Roth too.

You seem paralyzed into inaction by fear of something that hasn't happened, fear of something that may never happen in your lifetime.  That's okay.  There are many other options beside 401K, as I listed them in my previous post here.

401K does have an advantage over other investment accounts, and that's the match offered by many employers.  It truly is free money.  Your employer matches your contribution up to a certain percent, and that money is yours to keep even if you leave that employer later.