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Not to mention many paying 50% in income taxes/"payroll" taxes, plus 7% or more in local sales taxes, plus transportation taxes (fuel), plus fees(taxes) to support fatherland security, plus liquor taxes, plus licenses for operating a business, operation of vehicle, fishing, hunting, etc. Fat George's economic offenses were minuscule by comparison.
At least one of my Rev War ancestors must be rolling in his grave over this.
2) All Deposits are now considered the BANKS money, no longer YOUR money, and you are BEHIND the Fed and their other debts, even if NEWER than your deposit.
3) LAND is NEVER considered liquid IMHO... If lending dies, then it's only "completely liquid" if you will sell at ANY offer... Otherwise you are in a waiting game for a buyer!
4) Smart Investing... The goal almost NOBODY can achieve in these markets...
5) The market is being propped up, as BIG Players were BAILED OUT of Losing Positions. Government Assisted Income Inequality is what Trump was talking about.
It is an interesting theory. The challenge for most people is at the end of 12 months, they will hold on to their losers, sell their winners, and watch the losers keep losing.
Did you consider any BlockChain/Coin investments?
But I completely agree with the diversified approach. I have a rental property (chugging along, but empty for a few months because of Covid), Stock Market (Down 10% which is about 1% more than the profits I was carrying). Some precious stuff, etc. And Zero Debts so I am not paying interest. ALWAYS the best investment in my opinion. And some BlockChain which is down 4%...
I see real estate as another inflation hedge. Although I went looking at another rental property... NOPE. The prices are way up! And I don't want to be too heavy in any one investment...
The funniest LIE is that the market looks ahead 6 months. Utter BS! Otherwise we would not need daily reporting and have 5 minute swings based on "new" information.
Regardless... This is a DIFFERENT time. There was no double bottom formed here. We did a Vee back up pretty quickly. I had money waiting for a second pullback... We
never got one... Too bad for me... I missed it.
Since the market is Rigged via the Plunge Protection Team... If you don't need the money for 10+ years, you can just scale in long. Maybe hedge in some situations. In the short term, anything can happen!
But THIS is different than the Market Crash with the great depression. The bankers exited the stock market 3-6 months before the crash.
Then ALL the banks effectively did Margin Calls, kinda forcing the crash. The ruined liquidity. And people were levered 10:1... They quickly lost everything, and the MOOD
of the country went sour. Very hard to recover from that.
In this case, we had a Government Taking... Triggering this. Then a TON of liquidity thrown at the markets... The mood is NOT sour... And I truly believe that before the election, we will be seeing more and more states lift restrictions... (mostly red states, of course).
The market will NOT drop 80% until the bankers have exited their positions! They will help keep the ponzi scheme going until 80% of the households are in the market.
That might be starting to happen... Just my opinion...
Thanks for sharing!
$50K to buy 5 acres of buildable land.
$50K to your savings account.
$50K to cash in your safe.
$50K invested smartly* in the stock market.
$50K to buy 25 ounces of metal @$1950/.
At the end of this 12 month experiment you will have at least $150K of this money that did not earn squat. The other $100K just might do real well and show some growth. I play around on my own in the market and do just a little OK. My savings accounts do great for the bank but nothing for me. My property is a loss loser because of the taxes. I don't own much gold or silver. Any cash in a safe is not much better than money in savings. We have some money in a 401K and much to my surprise it has performed ridiculously well throughout this entire pandemic because it is in diversified funds and by much smarter investors than me. The fear we should all feel is this could all go up in smoke in a flash. The wall street casino is a very dangerous place but I don't honestly see any safe havens out here for excess money any of us might have.
DOW then is red, DOW now is blue.
The NOW dates are cut off though, so that is tough to discern. The yellow vertical line appears to be most recent data on the present timeline.
(I didn't create it, and it is not visible where I recall finding it. )
Regarding the scaling...
The way the chart is scaled seems to predict the low for the current market at 16,000 if it follows the depression DOW. The depression DOW pulled back about 80% from the yellow dotted line to the low, and the chart equates that to a 45% pullback today. It's utter speculation.
Additions to the first leg- real estate. The high prices are also assisting state and local governments to waste more and more money because the high prices mean higher tax revenues for poorly managed state and local governments. Commercial real estate (retail in particular) has also been hurt by the ongoing transition to online retail, and now the shut-downs have destroyed even more tenants in retail, services, restaurants, hotels, tourism. The only things preventing a collapse of real estate prices is near zero interest rates and federal government bailouts.
Real estate pricing should be allowed to fall to free market levels, probably 50% to 80% lower than current levels. Banks should reduce mortgages by the same proportion. But the financial firms (banking cartel and Wall St) run the federal government, so there will continue to be bail outs until the entire system collapses. The cartel will own virtually everything of value.
It's about the ability to overlay the two, even if scaled, to see that we are in a similar environment.
Stock markets are a measure of EMOTION...
Stock prices rise for 2 reasons. Bulls chasing it up (think 1990s), and PURE INFLATION of the currency.
When your currency is being inflated, stocks serve as an inflation hedge, because SO MUCH of the money has to be put somewhere to hedge the inflation of holding cash.
Meanwhile, the big bankers hold down the price of Gold with crazy shorts while the market is not open, to HIDE the inflation... But it only works until investors remove their STOPS, and keep buying gold/silver regardless, because they KNOW the inflation is being hidden.
Hence the recent rise in the precious metals. Another RIGGED market...
And that is the real problem. ALL of the markets are rigged.
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