Stock market is freaking out - something is going on

[VivaRevolution]

I think the big difference now is that vastly more people are renting as opposed to owning(by way of predatory loans) because, yeah, I don't understand how people are affording 400k single family homes in some of the worst areas for employment in this country(Central valley CA). Stockton for instance has some of the highest unemployment/underemployment in the country, hence their testing of UBI, and you'd be surprised at how much a shithole 3br costs in the hood. It's absurd and makes little sense.

I'm not sure what the end game for this is or if it will be as bad as 07/08 but something's gotta give.

I was hoping for a constant slow decline, for the correction, but I don't think that is possible. I really don't want to be right about our economy.

This volatility is worrying.

 

[xcvbn]

I was hoping for a constant slow decline, for the correction, but I don't think that is possible. I really don't want to be right about our economy.

This volatility is worrying.

our stock exchanges tend to move slowly. We had 10-20% dips in 2015 and it rebounded fine over the past couple years. Kinda have to wait and see over the course of this year and next but I'd be surprised if we see blood in the streets.

Real estate, on the other hand, has me very concerned. Either we'll see a building boom to match demand and possibly stabilize or lower housing costs, or we'll all paying rent to Chinese landlords within a few years.

 

[KILL KILL]

our stock exchanges tend to move slowly. We had 10-20% dips in 2015 and it rebounded fine over the past couple years. Kinda have to wait and see over the course of this year and next but I'd be surprised if we see blood in the streets.

Real estate, on the other hand, has me very concerned. Either we'll see a building boom to match demand and possibly stabilize or lower housing costs, or we'll all paying rent to Chinese landlords within a few years.

What's going on with the housing market?

The area I live is booming, so property costs have been skyrocketing.

 

[ndwolfwood]

This r and k selected garbage is utter nonsense

Classic r selected defense mechanism

 

[xcvbn]

What's going on with the housing market?

The area I live is booming, so property costs have been skyrocketing.

Prices have skyrocketed everywhere, even in markets where it makes little sense like my Stockton example. I think what we're seeing is a lot(like $1 trillion+) of foreign investment in US real estate. Here in california the chinese have been ruthlessly buying properties ABOVE asking prices in CASH, from LA to the Bay Area to Sacramento.

 

[Orgasmo]

Prices have skyrocketed everywhere, even in markets where it makes little sense like my Stockton example. I think what we're seeing is a lot(like $1 trillion+) of foreign investment in US real estate. Here in california the chinese have been ruthlessly buying properties ABOVE asking prices in CASH, from LA to the Bay Area to Sacramento.

Same in Canada

Vancouver and Toronto are basically off the options table to locals at this point, pushing close to million for condos and $2 million for detached homes. You can't avoid rocketing prices even if you live in nearby towns, since those displaced by the prices also drive them up elsewhere.

 

[KILL KILL]

Prices have skyrocketed everywhere, even in markets where it makes little sense like my Stockton example. I think what we're seeing is a lot(like $1 trillion+) of foreign investment in US real estate. Here in california the chinese have been ruthlessly buying properties ABOVE asking prices in CASH, from LA to the Bay Area to Sacramento.

Well damn. That's no good.

 

[sub_thug]

That is all nonsense. Real wage growth is non-existent. We are now about even with inflation for wage growth. That isn't real growth, that is treading water, instead of drowning.

Full employment is a BS number, as those on the right liked to point out when Obama was in office. The number of people who have dropped out of the work force is still historically very high.

The fundamentals of the economy are not strong. We have the same economy that gave us the GFC. There is a reason interest rates have been at historic lows, and yet it has taken 10 years of electrinically conjured money for us to return to pre GFC economic numbers.

We have went from bubble to bubble since the .com boom. We can't grow our economy without bubbles because we destroyed our consumption in the name of higher corporate profits.

This is all ridiculous pseudo-anarchist conspiracy theories

 

[sub_thug]

Tesla reminds me of how I play video games and why I always lose at them. Cuz I make sure I have the best tech in my soldiers, tanks, etc before I fight. But before then, a less advanced bigger army crushes me. I bet Musk plays video games the same way because that is exactly what he is doing. He is taking so long it is gonna be snatched away by others with bigger production. Like GM and nearly everybody.

Tesla and Amazon have polar opposite business models. Which company is in better shape?

The difference is that Tesla is the sole-source provider of that futuristic tech. Musk is protected by patents, R&D costs for competitors, and inspires shareholders through a superior vision. Amazon, on the other hand, is about eliminating all waste from their distribution process. Eventually, Amazon will have to expand its market because there won’t be any more waste to cut. If not for AWS, they won’t even be profitable.

 

[HatchetHarry]

Made money on ViX this week.


Ballin

 

[AznTrojan]

I was surprised when I saw Teslas shares at 300 bucks or whatever it was, seemed a little overvalued.

sheeit.. i bought tsla when it was near 360.. lost a little bit of dough but i sold it all and bought NVDA and made it back really quickly

 

[Pseudo Sane]

No I mean bubbles like our higher education, Health care, or housing.

You know where I live, housing prices have returned to pre-gfc levels. That means 300k for a 3 bed 2 bath house. How many 80k jobs a year, does a local market need to sustain the average house selling for 300k?

I don't know the answer, but I'm pretty sure my local economy doesn't have that many 80k a year jobs, which means that housing once again in my area is a bubble.

I wish I could find a house in my area for 300k.

The average is more like 700k now.

 

[jeffk]

I went about 75% cash when the S&P went above 2800. The question now is where to re-enter the market.

I missed out and didn't invest new money last year because I waited for weakness.

To time the market you have to be right twice. It isn't easy to do.

 

[jeffk]

What I don't get is how a stock like Netflix is trading where it is at. Even with the slight decline now it is trading something like at a multiple of 190 PE multiple and has a lot of debt. I have a co-worker who has made a ton off netflix and she doesn't know anything about investing. So I am bitter.

With Amazon Prime, HBO streaming, and Disney getting Fox content along with ESPN content and they plan to have their own streaming service, I see a lot of competition for streaming content and don't see people willing to pay for a lot of streaming services.

If I had any balls, I would short Netflix.

 

[VivaRevolution]

What I don't get is how a stock like Netflix is trading where it is at. Even with the slight decline now it is trading something like at a multiple of 190 PE multiple and has a lot of debt. I have a co-worker who has made a ton off netflix and she doesn't know anything about investing. So I am bitter.

With Amazon Prime, HBO streaming, and Disney getting Fox content along with ESPN content and they plan to have their own streaming service, I see a lot of competition for streaming content and don't see people willing to pay for a lot of streaming services.

If I had any balls, I would short Netflix.

Not me. Content for dollar, I'll still take netflix over anything else. As long as that is true, they will be fine.

 

[luckyshot]

Prices have skyrocketed everywhere, even in markets where it makes little sense like my Stockton example. I think what we're seeing is a lot(like $1 trillion+) of foreign investment in US real estate. Here in california the chinese have been ruthlessly buying properties ABOVE asking prices in CASH, from LA to the Bay Area to Sacramento.

 

[Cubo de Sangre]

Anybody else like utilities as a basic long-term play?

 

[ElKarlo]

Anybody else like utilities as a basic long-term play?

I don't know. With wind and solar there may be some serious disruption coming. if yoy want safety go consumer staples.

 

[Cubo de Sangre]

I don't know. With wind and solar there may be some serious disruption coming.

Any disruption is decades away. Private utilities invest infrastructure and return a set rate on that, cost of delivery, and operating expenses. It's statutory. Think 8-10%. Provided the utilities maintain their return with timely rate-case filings, it's a guaranteed profit. Even if people use less of it, the standby-charges will adjust to maintain that rate of return.

tl;dr: Regulated monopoly.

 

[VivaRevolution]

Any disruption is decades away. Private utilities invest infrastructure and return a set rate on that, cost of delivery, and operating expenses. It's statutory. Think 8-10%. Provided the utilities maintain their return with timely rate-case filings, it's a guaranteed profit. Even if people use less of it, the standby-charges will adjust to maintain that rate of return.

tl;dr: Regulated monopoly.

Yeah, it is a good safe play.