Thursday, August 11, 2022

Capitulation

When will the "recession" be over?

From the standpoint of the stock market it will be when the punters "capitulate".

It will be after you no longer hear "Buy on the F______ Dip" or "The Fed drives the market"

A person can drink coffee or take Speed and stay awake for a long time. But when the caffeine or amphetamines no longer work, the person crashes regardless of the number of energy drinks or little pills they take.

6 comments:

  1. Very true. And if you're in a 401K, it 'should' be for the long term, not the short term.

    ReplyDelete
  2. How's that work in triple digit inflation?

    ReplyDelete
    Replies
    1. Ordinarily you could shift your portfolio around to invest in companies with high "book value" and the hard assets would appreciate with inflation.

      12 years of crazy monetary policy warped everything and I don't know if that still applies.

      Some 401kk and IRA plans allow investments in REITs and limited partnerships that manage hard assets. One problem is that commercial real estate is in the toilet and rent is getting spongy.

      Delete
  3. In the current print ever more money and "Green" politics you can sell and lock in your losses PLUS the Taxes they will hit you with.

    Or you can hold and hope somehow the crazies in the District of Criminals stop hitting the print money button.

    Helps if your stocks and bonds are in recession protected businesses like food and energy but the Green Socialists are on that too.

    The winner in an economic collapse is the family that still has a roof over their head, trusted friends, a good garden, skills and work ethic to carry on and enough of the King's Shillings to keep the tax collectors from auctioning off your home on the courthouse steps protected by Sheriffs like they did in the Great Depression.

    BTW plenty of Americans suffered malnutrition during the Great Depression while the US Government was forcing farmers to destroy food and paid them to not farm.

    Enlisting for the War was a vast improvement over suffering at home with plenty of food, a nice set of clothing, new shoes and a paycheck. BUT because of malnutrition a pretty amazing number of enlistees failed the enlistment medical exams.

    I know this from my Grandfathers diary as a Dr. doing those exams. And his comments about even he as a Dr. did manual labor, raised hogs and accepted pitiful gifts for his services during the Depression.

    ReplyDelete
  4. I am making $92/hour telecommuting. I never imagined that it was honest to goodness yet my closest companion is earning $21 thousand a month by working on the connection, that was truly astounding for me, she prescribed me to attempt it simply.
    That is what I do.. . www.salarycash1.com

    ReplyDelete
  5. It's the global debt and unfunded liabilities that will blow this thing and last longer than any previous one. The amounts are the highest in history and then leveraged beyond that. Bastards.

    My only worry is for my kids and grandkids.

    ReplyDelete

Readers who are willing to comment make this a better blog. Civil dialog is a valuable thing.