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i am breaking the rule here: gold price is now < $1200 an ounce
http://www.bbc.co.uk/news/business-23093548
http://www.bbc.co.uk/news/business-23093548
I am declaring party foul. The title says no gold!
You should really change the other thread to read "Grumps posts to himself about investing in GOLD."
You know I actually did do that. Then I quickly changed it back.
Owl, never noticed before, but we have the same join date
China's GDP will be released tomorrow! If it is bad, who is going to buy more emerging market funds?
The short of it is this: The government bails out banks/corporations/industries, but who will bail out the governments? Low interest rates cause the next bubble because if the interest rate doesn't remain low, the debt becomes impossible to pay.Lol, the Treasury is enjoying the cheapest borrowing it has ever had access to. I'd hardly say it's is a "bailout bubble".
Disclaimer: I did not watch the hour long video, I just read the description and decided against it because I am pretty sure I can guess what it says.
The short of it is this: The government bails out banks/corporations/industries, but who will bail out the governments? Low interest rates cause the next bubble because if the interest rate doesn't remain low, the debt becomes impossible to pay.
Open a taxable account and start contributing to emerging markets/international, better P/E. Historically, low P/E correlates to higher EXPECTED return. At this point, I am more leery of putting more money into US coz I know my expected return will be smaller than investing into emerging/international.
The short of it is this: The government bails out banks/corporations/industries, but who will bail out the governments? Low interest rates cause the next bubble because if the interest rate doesn't remain low, the debt becomes impossible to pay.
After a few minutes of the video playing, I had to double check who posted it because it really seemed like a grumps story.and to buy gold.
I'm not implying anything, I'm just giving a 2-line synopsis of the video. They definitely did make the implication that bailouts are the new global craze and there will be bailouts to back bailouts, which is of course impossible to manage.No one needs to bail out the US Federal government anytime soon because it is no where near that point. Nothing indicates it. In fact, the way the market treats US debt, it is one of the last institutions on the planet that would need a bailout judging by how the market sees the debt.
Right now is actually the perfect time to spend on things like infrastructure that in the long run will be an investment with a positive ROI. Unfortunately, Congress is stuck playing silly political games.
The bailouts were done as a short-term measure- no one wants a long-term culture of bailouts if that is what is being implied and even Capitol Hill is trying to do something about it- whether or not what they are doing is good or bad is another story, but the point is no one wants a bailout culture except those getting bailed out. And that constant search for stability can be enough to keep us going in that regard.
One thing though- you said the low interest rates will cause the next bubble. Are you implying that Congress passes its spending bills based on the going rate of Treasuries? If only it were that effective/smart.
I'm not implying anything, I'm just giving a 2-line synopsis of the video. They definitely did make the implication that bailouts are the new global craze and there will be bailouts to back bailouts, which is of course impossible to manage.
PharmEcon reads a lot of Krugman.
Nah... I prefer monetary stimulus (and really right now it isn't stimulus so much as keeping up with the inflation target) to fiscal but I realize that we need some fiscal spending at one point or another for things like infrastructure, so I'd rather do it on the cheap and then cut back on other things when rates are worse and we are out of recovery.
That's pretty much what Krugman has been saying since 2008. "Zero Lower Bound" comes out of his mouth about as much as the word "the".
How is that the same as what I'm saying if I prefer monetary solutions right now? I don't think the Fed is out of or limited with its options and I am not a huge proponent in the liquidity trap/ZLB that Krugman and Keynesians talk about. I am much more of the monetarist camp in that regard- I think there is plenty the Fed can and should do. I think a NGDP target would be a good idea, for example. Krugman would prefer more fiscal routes than I would.
We have passed the 6 month mark. What is your best and worst move so far?
Best- sold off all my bonds
Worst- didn't max out my 401 k until June; put my roth ira money into emerging market.
The housing market is slowing down?
http://www.calculatedriskblog.com/2013/07/existing-home-sales-expect-below.html?m=1
besides the usual diversified 401k and roth.
best: paid my student loan down to $30K from $90K. Bought a house summer of last year.
worst: didn't have any money left over to invest. Might end up regretting not buying couple investment properties last year.
some signs that the housing recovery is slowing down
http://www.bloomberg.com/news/2013-...omes-in-u-s-unexpectedly-dropped-in-june.html
I wonder what's going to happen if and when prices start to drop? Will investors dump their real estate investment?
Not in south FL... People are bidding on houses now like it was in 2005....
Regret not having the money to buy more stock during the crash. Born just a taaaaaaad too late.
Assuming you are young, I would put 25% international, 30% small caps 25% large and 20% mid caps. No bonds.
Look for vanguard funds.
Target retirement is fine but make sure you check the fee. It is usually higher and honestly, you don't need them to do it for you.
Check: http://www.bogleheads.org/
Mine has vanguard target funds, dirt cheap 0.18 expense ratio. Pretty good performance too, out performed S&P500 the last 5 years I looked at.
Anybody have thoughts on investing in any of the major/upcoming 3-D printing companies (XONE, DDD, SSYS, ONVO) out there? ONVO is particularly intriguing to me as far as biotech applications are concerned. They all seem pretty largely overvalued at the moment, but I can't help but think I'd be missing out once the technology really takes off.
Does anyone know anything about the housing market in Vegas? It seems like housing is not that bad of an investment... I bought an investment property in Sept 2011 in South FL for 150k and spent about15k to fix it and now this property worth 230k... I wanna to buy another one but they are getting expensive in South FL... I want to know if they still worth peanuts in Vegas...
How do you all do your investing? Through online trading sites? I'm new to all of this but would like to learn about different aspects of investment. I started a Roth IRA when I was 18 and contribute 50 dollars a month to it. im 21 now so its only been a few years of contribution. I also contribute to my 401k at work and they match up to six percent so I take advantage of that. But I am also a first year pharm student so I don't really have that much money to play with now. But I would like to learn for the future. If any of you know of any good sources it would be appriciated. Thanks!