In the black on stocks for the year now

[WizardofSoda]

So far this year..

Nasdaq: -21.5%
S&P 500: -14.1%
Wizard of Soda portfolio: +0.4%

Even in this years market which went into unarguable bear market territory with the S&P 500 down over 20% at one point and Nasdaq was down over 30% at one point.. I'm still up.

 

[proudWEED ha ha]

im down cuz i just own index funds

but i dont even look at them, just keep buying

 

[WizardofSoda]

Normies and foids reaction.

 

[WizardofSoda]

im down cuz i just own index funds

but i dont even look at them, just keep buying

Ya the S&P 500 averages 10% a year over time, and Nasdaq probably the same, so you get rich with that strategy over time. Its amazing if you put it into a spreadsheet.. saving $1,000 a month and getting 10% a year return, even adjusting it to 8% a year return to account for the 2% inflation over time.

 

[crestfallencel]

BLACKED

 

[WizardofSoda]

BLACKED

 

[proudWEED ha ha]

Ya the S&P 500 averages 10% a year over time, and Nasdaq probably the same, so you get rich with that strategy over time. Its amazing if you put it into a spreadsheet.. saving $1,000 a month and getting 10% a year return, even adjusting it to 8% a year return to account for the 2% inflation over time.

yep that's exactly why I buy and hold

barring any truly extreme disasters, it's a sure path to a (financially) healthy retirement

 

[5ft4ropeconnoisseur]

That's why I invest all my money on funko pops

 

[willystroker]

Yeah hope you realize we're on the cusp of the greatest recession in human history.

I knew when the fed printed 30% of the fucking USD in 2020 alone that we were in for a bumpy ride. But IDK what to do with my money because literally everything's in a bubble.

 

[WizardofSoda]

That's why I invest all my money on funko pops

You can make big returns even in collecting. Even though its sounds sarcastic, if you look back to say the 1980's, it didn't really matter what people bought, whether vintage alcohol, artwork, stocks, real estate, bonds, comic books, watches etc. they made big money over time even adjusting for inflation.

 

[WizardofSoda]

Yeah hope you realize we're on the cusp of the greatest recession in human history.

I knew when the fed printed 30% of the fucking USD in 2020 alone that we were in for a bumpy ride. But IDK what to do with my money because literally everything's in a bubble.

My call has been I don't think we will go into a recession, because after the monetary expansion in 2020, there is too much money people have right now, it is driving spending. Then whoever they spend the money to, they get the money to spend.

But say there is a recession anyway. Then President Biden and co. are going to come in with monster printing and stimulus spending.

 

[JayGoptri]

Yeah hope you realize we're on the cusp of the greatest recession in human history.

I knew when the fed printed 30% of the fucking USD in 2020 alone that we were in for a bumpy ride. But IDK what to do with my money because literally everything's in a bubble.

You buy gold and keep everything else in a checking account liquid. Thats it.

 

[willystroker]

My call has been I don't think we will go into a recession, because after the monetary expansion in 2020, there is too much money people have right now, it is driving spending. Then whoever they spend the money to, they get the money to spend.

But say there is a recession anyway. Then President Biden and co. are going to come in with monster printing and stimulus spending.

That's exactly what happened for the last two years. Bear in mind that the Fed was planning to do quantitative tightening in 2018 but cucked out and cut rates again. QT is long long overdue and fed has finally realized there's no choice but to raise rates.

In this press conference:

View: https://www.youtube.com/watch?v=H-dV2VUNh4E
Powell basically says he's going to get inflation down to 2% and doesn't give a fuck if it causes a recession in the process, repeating himself several times so the press gets the idea.

 

[WizardofSoda]

That's exactly what happened for the last two years. Bear in mind that the Fed was planning to do quantitative tightening in 2018 but cucked out and cut rates again. QT is long long overdue and fed has finally realized there's no choice but to raise rates.

In this press conference:

View: https://www.youtube.com/watch?v=H-dV2VUNh4E
Powell basically says he's going to get inflation down to 2% and doesn't give a fuck if it causes a recession in the process, repeating himself several times so the press gets the idea.

You have a lot of knowledge of what has been going on.

There is one more layer though that I don't think people who follow it have factored in. The other side, coming out of the possible recession.

If we were to go into a recession from this, then the falling demand of a recession will pull us into deflation. Because after the early 1980's deregulation America is this insanely vast free market, free enterprise and free trade nation. So the competition in the marketplace is setting prices for many industries. Whereas most countries have all these monopolies which still raise prices even if demand is falling. In fact they might extra raise prices then because they have to make up for lost revenues from lower volume of sales.

Oil is a great example because oil is this global free market basically. If there is a recession oil would probably fall significantly. Or at minimum not be rising, then inflation would be flat year over year. Whether the government of Saudi Arabia made promises to give millions of people extra money or not, if we can buy oil cheaper from somewhere else, the Saudis either cut the price of their oil or we buy from the other party.

Now people could say ya the recession would then lead to deflation then open up that they could do stimulus. But there would still be a recession in the meantime in that case. Thats true and a fair point. But for stocks I'm thinking about the long term value of these companies. So if a stock tanks in anticipation of a recession, then its already priced in.