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~* Make America Great Depression Again -- Official Thread of Corona Virus infected markets *~


Jason

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50 minutes ago, ManUtdRedDevils said:

I tried to buy a new house but prices are crazy due to these rates. I can sell my house for 100k more than I bought it four years ago. 

My condo that I bought for $700k (Cad) 5/6 years ago would now sell for around $1.4M and is continuing to rise. I find that insane for a 35 year old condo.

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2 minutes ago, Massdriver said:

This is nuts. The 10 year is negative in many other developed countries. We simply aren't there. Our economy and the German economy are different!

 

Trump personally benefits to the tune of millions of dollars when rates get cut.

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1 hour ago, Massdriver said:

You shouldn't be getting out with your main holdings. You should be holding and IMO adding as this thing sells off some more.

Look for it to get cheaper, as one of my favorite econ blogs put it: 

Quote

Are We Cheap Yet?

Posted on February 28, 2020by macromon

One helluva weak week for the stock market.  Three of the five largest Dow point flops in history.  Yes, we have already been lectured like a little schoolboy by the Twitterati geniuses “it is the percentage drops that count.”  No shit.

Cheap?  You gotta be fricking kidding me.  Not even close.  Look at our favorite valuation metric — market cap-to-GDP.     But, interest rates are going to zero, yada, yada, yada!   That is not exactly a positive, in our opinion.

Oversold?  Yes, and the S&P finally carved out a daily green candlestick,  to close higher than its opening trade.

Staying on the beach.

Market Cap

Note the above chart is a ratio of the total stock market capitalization to nominal gross domestic product (GDP) and cannot continue to move higher forever.  It gyrates from an upper limit of extreme overvaluation to the lower limit of extreme undervaluation.

You decide where we are at.

 

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1 hour ago, Signifyin(g)Monkey said:

Look for it to get cheaper, as one of my favorite econ blogs put it: 

 

It's a neat metric, and there's a lot of metrics out there. It's not cheap, but it's certainly not as expensive as it was a little over a week ago. Dipping into this thing isn't the worst idea, and international equities have better valuations which I also enjoy purchasing.

 

Timing the market based on valuations is a tough thing to do with all of your money. I try to do a little timing with additions and hold the rest.

 

Edit: What would be the toughest thing to purchase right now for me would be bonds due to valuations.

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I mean sure it might go lower, but point is some stocks are down a third to where they were previously like 2 weeks ago. If they were companies you were thinking of investing in already, now is a great time to go in.

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18 minutes ago, Jose said:

I mean sure it might go lower, but point is some stocks are down a third to where they were previously like 2 weeks ago. If they were companies you were thinking of investing in already, now is a great time to go in.

I'm not smart enough, or have enough time to research individual companies. All market ETFs here.

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