Down goes the Dow

Bugger used the worst, most popular song from one of my favorite rock groups into a silly message of financial preaching and stuck it firmly in my head before my first coffee... Next up, Hussman with a riff on Terry Jacks' Seasons in the Sun, 'cuz I'm dying to get that stupid ditty stuck in my head, ruining my productivity...

:-)

Ghost of Igloi wrote:

Flagpole wrote:

For what is both good and bad, the stock market is manipulated and focused on by the elite in this country. The rich and powerful are going to do everything they can to ensure that the rich and powerful stay that way. It DOES make the gap between the haves and the have nots bigger and bigger (which is bad of course), but it is the reason the stock market is such a safe play over time. Nothing gets more complete and immediate focus from those in power than a sagging stock market.

The Maserati thesis.

Seven out of eight indexes on our world watch list posted gains through October 18, 2021. The top performer is India's BSE SENSEX with a gain of 29.35%, France's CAC 40 is in second is with a gain of 20.21%, and our own S&P 500 is in third with a gain of 19.45%. Coming in last is Hong Kong's Hang Seng with a loss of 6.69%.

https://www.advisorperspectives.com/dshort/updates/2021/10/18/world-markets-update-october-18-2021?utm_source=boomtrain&utm_medium=email&utm_campaign&utm_content&utm_term&bt_ee=zIQHShdUfzIPttc9BTMkhp1A8tGalStVIJreuMdIqCQH8G6AYPskTPs%2FA%2BqVeobC&bt_ts=1634647902641

the idiot from another IP wrote:

Bugger used the worst, most popular song from one of my favorite rock groups into a silly message of financial preaching and stuck it firmly in my head before my first coffee... Next up, Hussman with a riff on Terry Jacks' Seasons in the Sun, 'cuz I'm dying to get that stupid ditty stuck in my head, ruining my productivity...

:-)

This should help:

Ghost of Igloi wrote:

Think back to that time period, and the 30% drop of 2020 six months before I retired.

The S&P has just about doubled since that low. Another point for buy-the-dip and buy-and-hold.

Hussman could play that riff. He worked for Hall of Fame DJ Larry Lujack in Chicago while playing in a Rock band.

Johannes wrote:

Ghost of Igloi wrote:

Think back to that time period, and the 30% drop of 2020 six months before I retired.

The S&P has just about doubled since that low. Another point for buy-the-dip and buy-and-hold.

My used car is outperforming the index so far this year. I bet my Social Security raise will outperform the index tge next ten years.😷

Ghost of Igloi wrote:

Johannes wrote:

The S&P has just about doubled since that low. Another point for buy-the-dip and buy-and-hold.

My used car is outperforming the index so far this year. I bet my Social Security raise will outperform the index tge next ten years.😷

I have no idea what you are talking about. If only this year's market was the average.

Dow - UP 15.32% YTD

S&P - UP 19.04% YTD

NASDAQ - UP 15.59% YTD

Flagpole - UP 17.24% YTD

My used car easily destroyed those year-to-date numbers. More important will be my locked in (non-transitory) Social Security increase.😹

https://www.nytimes.com/2021/09/27/business/used-cars-inflation.html

Portia wrote:

Seven out of eight indexes on our world watch list posted gains through October 18, 2021. The top performer is India's BSE SENSEX with a gain of 29.35%, France's CAC 40 is in second is with a gain of 20.21%, and our own S&P 500 is in third with a gain of 19.45%. Coming in last is Hong Kong's Hang Seng with a loss of 6.69%.

https://www.advisorperspectives.com/dshort/updates/2021/10/18/world-markets-update-october-18-2021?utm_source=boomtrain&utm_medium=email&utm_campaign&utm_content&utm_term&bt_ee=zIQHShdUfzIPttc9BTMkhp1A8tGalStVIJreuMdIqCQH8G6AYPskTPs%2FA%2BqVeobC&bt_ts=1634647902641

Ridiculously poor performance of global stock indices when matched against used cars:

Johannes wrote:

Ghost of Igloi wrote:

Think back to that time period, and the 30% drop of 2020 six months before I retired.

The S&P has just about doubled since that low. Another point for buy-the-dip and buy-and-hold.

Exactly. DO NOT exit the market if it takes a big dive. The market WILL rebound and those who sell are locking in their losses. It may rebound quickly or it may take a few years to rebound. But it WILL rebound. Plus, you have the added benefit of buying more equities/funds at highly discounted rates.

Ghost of Igloi wrote:

My used car easily destroyed those year-to-date numbers. More important will be my locked in (non-transitory) Social Security increase.😹

https://www.nytimes.com/2021/09/27/business/used-cars-inflation.html

Social security recipients only saw a 1.3% raise in 2001 and probably a larger one in 2022. How is that better than the market 18% return YTD this year?

So, Hussman gets paid for selling a service to investors concerned about downside risk. His track record is amongst the worst in the business.

Igy doesn't have that incentive. He does, however, have a reason to be minimally invested in the stock market since he is of retirement age. Therefore, his prefered stock market exposure might coincide with Hussman's, but that is due to some very different reasons (nearing retirement and seeking less risk).

Igy has made some unrealized gains on his antique car, however, and is prone to point that out in this context for some reason.

Did I miss anything?

Oh, yeah: bubble.

Ghost of Igloi wrote:

My used car easily destroyed those year-to-date numbers. More important will be my locked in (non-transitory) Social Security increase.😹

https://www.nytimes.com/2021/09/27/business/used-cars-inflation.html

So now you are embracing high valuations?

seattle prattle wrote:

So, Hussman gets paid for selling a service to investors concerned about downside risk. His track record is amongst the worst in the business.

Igy doesn't have that incentive. He does, however, have a reason to be minimally invested in the stock market since he is of retirement age. Therefore, his prefered stock market exposure might coincide with Hussman's, but that is due to some very different reasons (nearing retirement and seeking less risk).

Igy has made some unrealized gains on his antique car, however, and is prone to point that out in this context for some reason.

Did I miss anything?

Oh, yeah: bubble.

The Hussman strategic growth fund has the lowest rated Morninstar rating. The bottom of the barrel. It has an absurd 1.23 expense ratio considering it is the worst mutual fund around. You are paying fund managers to lose your money? Really? YTD return of 2.93% when the rest of the market is up around 18%. Igy - tell us again why you would ever buy this crap because you said you bought it recently.

Sally Vixxxxxxxxxens wrote:

Ghost of Igloi wrote:

My used car easily destroyed those year-to-date numbers. More important will be my locked in (non-transitory) Social Security increase.😹

https://www.nytimes.com/2021/09/27/business/used-cars-inflation.html

Social security recipients only saw a 1.3% raise in 2001 and probably a larger one in 2022. How is that better than the market 18% return YTD this year?

I will get a bump in my Social Security next year of a bout 6%, which is the highest increase since 1982. At 4,500 S&P 500 the index is unlikely to return 6% annually over the next 10 years. That is based on market history, and current valuations. My Social Security increase is not transitory, it is mine to keep, balanced of course against rising inflation, and higher Medicare contribution from moi.

On the used automobile. I use this narrative to point out asset inflation. Autos are for most people one, if not their only, greatest asset of value. If one believes that only stocks are going up, one misses a whole host of other assets going up. Swaglord is quite enamored with crypto and growth stocks. If I had to make a choice between those two and a used car, for an investment I would choose the automobile. That said, I would prefer cash or the Hussman fund over the previous three. My preference of course, which doesn’t make me a bad person. 😷

Ghost of Igloi wrote:

My preference of course, which doesn’t make me a bad person. 😷

Your investment choices make you a fool. Your racism is what makes you a bad person.

Another big day for Bitcoin.