10% of America is doing great right and 1% of American's are doing REALLY good

I love it when people use the DOW as an indicator of economic opportunity. I will concede the market is doing better, no doubt about it but there is still more supply in the labor market than demand which leads to a net loss in growth and an increase in productivity as people are forced to be more competitive for less.



Record profits happening right now! Woop woop!

To bad the American people aren't feeling it (generally speaking everyone is trapped for liquidity).

a reply to: toysforadults

I'm totally out of the market. It's a bubble about to pop. Drastic correction in the near future.

I learned my lesson back in 08.

This is a huge part of the reason crypto is so big in places like Korea and Japan.

Liquidity is an issue, especially when inflation is going up and wages can't keep up.

It's the reason I hold onto gold and silver and continue to buy high-value cryptocurrencies.

I'm doing this with small amounts of money at a time. I buy fractional bullion, I buy a little crypto here and there, and I buy stocks every quarter or so via ETFs. This is how people with smaller incomes can get into the investment game.

The biggest problem with the concept of "income inequality" is the fact that most people don't have more than one source of income and most people don't invest or know how. Very few people actually do because most people think they're priced out of the market at what are record highs.

I really believe that if people spent more time on Investopedia than on Facebook they'd be far better off and they could turn their internet access into a source of revenue.

Money that sits in an account or is just used to pay bills isn't doing anything for you.

"If you don't find a way to make money while you sleep, you will work until you die." -Warren Buffet.

Now Buffet and I disagree on a few things, but this isn't one of them. Your money is as much a tool as Buffets. The difference is in HOW he uses his tools vs. how you use yours.

I saw a thing on one of the news magazine shows about a group of women who got together once or twice a month, and instead of taking their loose change to go shopping, they use their extra $50 or $60 bucks to make stock or other investments.

In the beginning, they said they felt sort of silly, like they weren't going anywhere, but over time, they started to find their feet and learn and their little amounts started to grow and they diversified. Pretty soon, they didn't feel nearly as silly anymore.

a reply to: olaru12

I wouldn't pull everything out, I'd just switch to hedging which is where I am now.

You're absolutely right. I wouldn't say its necessarily a bubble, but I do see a massive correction coming down soon. Never buy at all-time highs.

originally posted by: olaru12
a reply to: toysforadults

I'm totally out of the market. It's a bubble about to pop. Drastic correction in the near future.

I learned my lesson back in 08.

Genuinely interested in what indicator's you see.

originally posted by: projectvxn
a reply to: olaru12

I wouldn't pull everything out, I'd just switch to hedging which is where I am now.

You're absolutely right. I wouldn't say its necessarily a bubble, but I do see a massive correction coming down soon. Never buy at all-time highs.

precious metals???

a reply to: toysforadults

I always hold onto my buying power. Precious metals are a good place to start, so are cryptocurrencies.

I have never sold either my gold or my silver and I noticed one thing: Whether the price goes up or down it still buys more than a single dollar at any one time since the beginning of the use of the modern interest-based dollar.

So far, many of my cryptocurrency investments have either netted a profit against the dollar or simply stored value against the dollar.

a reply to: toysforadults

My 401k and stocks are making me feel really good about it.

a reply to: toysforadults

(generally speaking everyone is trapped for liquidity).

The stats disprove your assertion
tradingeconomics.com...

furthermore
"Unemployment Rate Holds Steady At 4.1% As U.S. Adds 148,000 Jobs In December"
www.forbes.com...

a reply to: whywhynot

Be careful out there, this article is really good:

These are the biggest companies that, in theory at least, require investors to wait 50 years (or more) to be paid back in profits for each dollar invested.

236 companies fit this description right now. 236!

Here’s a screenshot of page 11 of the results. Every company listed here has a P/E multiple of over 190(!).

www.peakprosperity.com...

a reply to: olaru12

Please don’t take this as smart mouth, what lesson did you learn? Probably you sold on the drop in a panic. The lesson you should have learned is don’t sell but buy or at least hold. The market always comes back. Stay in quality stocks or funds.

originally posted by: SkeptiSchism
a reply to: whywhynot

Be careful out there, this article is really good:

These are the biggest companies that, in theory at least, require investors to wait 50 years (or more) to be paid back in profits for each dollar invested.

236 companies fit this description right now. 236!

Here’s a screenshot of page 11 of the results. Every company listed here has a P/E multiple of over 190(!).

www.peakprosperity.com...

Each knowledgeable investor will have his/her strategy. You may not be wise to buy a stock with a pe of 200 unless it pays a great dividend.

Example: XOM, great P/E , nice growth, nice dividends. Old blue chip money maker.

Fear in the market equals loss, knowledge enables success.

a reply to: toysforadults

Market gains have been slowing, job growth is tapering off. A lot of people I know have access to ridiculous levels of funds right now. Let me give some examples that I've personally seen in the last month, and for reference I live in one of the most economically depressed places in the US.

1. My friend on the good old 29 hours/minimum wage staple income has enough money that he built a portfolio of cryptocurrencies and stocks in the last year.
2. My other friend that's on the $10/hour fast food manager career track just paid back a $5000 student loan, bought a new car, and is going back to college paying out of pocket for the next two years (all in all, about $20,000).
3. Someone I know on disability just bought a new (to them) car at a price that amounted to more than a years worth of income.
4. The grocery store in my town, a place that has a literal payday loan vendor built into it, and a pawn shop next door to it, recently revamped their interior. The butchers shop only sells angus cuts of steak with a price starting at $15/pound. The vegetable department switched to all organic, individual salads are $7 each. The sushi department increased prices by 25%, product is still flying off the shelves.
5. Houses are not staying on the market for long.

As far as I can tell, it feels to me like everyone has a lot of money to spend. I know the demographics don't support my observations, but from how it looks to me money is literally falling out of peoples asses. Of my friends group, I have by far the best job, and on paper am making more than all of them combined. Yet in spending it seems like I'm actually the poorest. I can't afford half the stuff they're paying for.

Liquidity is definitely there, I have little reason to believe it's from salaries though. I think banks are loaning a bit freely again.

a reply to: Aazadan

Your full of ****.

No one is buying brand new cars with part time $9 an hour jobs in America or building investment portfolios with it.

Heh.

originally posted by: toysforadults
a reply to: Aazadan

Your full of ****.

No one is buying brand new cars with part time $9 an hour jobs in America or building investment portfolios with it.

Heh.

Yes they are. I'm trying to figure out where the money is coming from, because it's certainly not coming from their paychecks.

a reply to: Aazadan

Drugs? Always been around.

a reply to: Aazadan

Makes no sense.

originally posted by: ketsuko
I saw a thing on one of the news magazine shows about a group of women who got together once or twice a month, and instead of taking their loose change to go shopping, they use their extra $50 or $60 bucks to make stock or other investments.

In the beginning, they said they felt sort of silly, like they weren't going anywhere, but over time, they started to find their feet and learn and their little amounts started to grow and they diversified. Pretty soon, they didn't feel nearly as silly anymore.

I use a app called Acorn. It rounds up every purchase you make over a month on your debit card and credit cards and then invests the difference based on your selected risk profile. For example, if you buy a coffee for $1.75. The app rounds up the purchase to $2.00. So the 25 cent difference is then invested. It is an easy way to invest your loose change essentially.

I've literally saved about $1000 over the past four months...

The biggest mistake people make is never investing and starting too late.