Dow sinks 680 points after GDP report shows a slowing economy amid stubborn inflation (1 Viewer)

[Kushinator]

I know that the Fed controls monetary policy.

Now you do.

 

[hooligan]

 

[Ahlevah]

More evidence of Joe’s “booming” economy:

WASHINGTON (AP) — The U.S. economy grew at a sluggish 1.3% annual pace from January through March, the weakest quarterly rate since the spring of 2022, the government said Thursday in a downgrade from its previous estimate. Consumer spending rose but at a slower pace than previously thought, a sign that high interest rates and lingering inflation are pressuring household budgets.

US economic growth last quarter is revised down from 1.6% rate to 1.3%, but consumers kept spending

The U.S. economy grew at a sluggish 1.3% annual pace from January through March, the weakest quarterly rate since the spring of 2022, the government said in a downgrade from its previous estimate.

apnews.com

And, hey, how about that stock market!

New YorkCNN —
US markets have had a rough week. The Dow has fallen by around 1,000 points over the last three days alone — and the negative momentum didn’t let up Thursday.

The Dow closed 331 points lower, or 0.9%. The S&P 500 was down 0.6% and the Nasdaq Composite dropped 1.1% as lackluster earnings results from Salesforce (CRM) worried investors.

https://www.cnn.com/2024/05/30/investing/dow-jones-down-markets-explainer/index.html

Seems like just yesterday we were celebrating Dow 40,000. What a difference a week makes.

 

[TobyOne]

Thats why these threads are so silly - especially when people try to tie market performance to who is in office. You never see them post the bad news. Thats how you know its just partisan buffoonery.

More evidence of Joe’s “booming” economy:

US economic growth last quarter is revised down from 1.6% rate to 1.3%, but consumers kept spending

The U.S. economy grew at a sluggish 1.3% annual pace from January through March, the weakest quarterly rate since the spring of 2022, the government said in a downgrade from its previous estimate.

apnews.com

And, hey, how about that stock market!

https://www.cnn.com/2024/05/30/investing/dow-jones-down-markets-explainer/index.html

Seems like just yesterday we were celebrating Dow 40,000. What a difference a week makes.

 

[GIJane]

And you dumb ass libs WANT to keep Biden. Jesus, I wish I was this clueless.

 

[Allan]

And you dumb ass libs WANT to keep Biden. Jesus, I wish I was this clueless.

Wish granted, retroactively.

 

[Ahlevah]

Thats why these threads are so silly - especially when people try to tie market performance to who is in office. You never see them post the bad news. Thats how you know its just partisan buffoonery.

Agreed. I just do it tweak Joe’s fans.

The thing we need to pay attention to is liquidity, especially spreads against 90-day T-bills. I think we’re going to have a problem as the Fed continues to hold firm on its balance sheet even in the face of massive Treasury issuance. Toss in commercial real estate and corporate debt that will need to be rolled over or renegotiated over the next couple of years and we have the makings of another credit or banking crisis. The bond market is signaling higher rates, which will likely put pressure on risk assets. The easy money has been made, although I have a few high-conviction bets going at the moment, the top ones being Qualcomm and Amgen.

 

[TobyOne]

I'm just a buy and hold investor these days. Following the FIRE philosophy sort of. I monitor markets and rates....have some ETFs, individual stocks, metals and crypto. Thats about as far as my knowledge goes. I'm concerned about interest rates, obviously, and also federal debt and the impact in the next 5-10-15 years.

Agreed. I just do it tweak Joe’s fans.

The thing we need to pay attention to is liquidity, especially spreads against 90-day T-bills. I think we’re going to have a problem as the Fed continues to hold firm on its balance sheet even in the face of massive Treasury issuance. Toss in commercial real estate and corporate debt that will need to be rolled over or renegotiated over the next couple of years and we have the makings of another credit or banking crisis. The bond market is signaling higher rates, which will likely put pressure on risk assets. The easy money has been made, although I have a few high-conviction bets going at the moment, the top ones being Qualcomm and Amgen.

 

[Ahlevah]

I'm just a buy and hold investor these days. Following the FIRE philosophy sort of. I monitor markets and rates....have some ETFs, individual stocks, metals and crypto. Thats about as far as my knowledge goes. I'm concerned about interest rates, obviously, and also federal debt and the impact in the next 5-10-15 years.

Yeah, just be aware of the significant role psychology plays in financial markets, especially concepts like FOMO and recency bias, and always have some liquidity so you can be opportunistic during significant market declines. If everyone is piling into top-heavy NASDAQ 100 or S&P 500 passive ETFs like QQQ, SPY, and VOO after an eleven-year bull market then that probably means something else will do better going forward, and for the last couple of years it (gold) has. These indexes are starting to look a bit long in the tooth. Momentum investing was popular in the 1990s until the Dotcom bust when value investing took over, but then things swung back. If interest rates and inflation stay elevated above the artificially-low rates of the recent past, value stocks with current positive earnings and cash flow and that return dividends will probably perform better than stocks that will earn money in depreciated dollars in the future. So will commodities, which only recently have sprung to life after a long hiatus and probably have more room to run. Every asset class has its day in the sun.

 

[TobyOne]

What do you think about REITs?

Yeah, just be aware of the significant role psychology plays in financial markets, especially concepts like FOMO and recency bias, and always have some liquidity so you can be opportunistic during significant market declines. If everyone is piling into top-heavy NASDAQ 100 or S&P 500 passive ETFs like QQQ, SPY, and VOO after an eleven-year bull market then that probably means something else will do better going forward, and for the last couple of years it (gold) has. These indexes are starting to look a bit long in the tooth. Momentum investing was popular in the 1990s until the Dotcom bust when value investing took over, but then things swung back. If interest rates and inflation stay elevated above the artificially-low rates of the recent past, value stocks with current positive earnings and cash flow and that return dividends will probably perform better than stocks that will earn money in depreciated dollars in the future. So will commodities, which only recently have sprung to life after a long hiatus and probably have more room to run. Every asset class has its day in the sun.

 

[ColdHardTruth]

It's called STAGFLATION and it was last seen under democrat Jimmy Carter

It's the worst of all worlds economically

This is not actual stagflation.

That hasn't happened since the depression.

 

[TobyOne]

There was stagflation in the 70s. Between that, Carter, gas lines and disco it was a horrible decade.

This is not actual stagflation.

That hasn't happened since the depression.

 

[ColdHardTruth]

There was stagflation in the 70s. Between that, Carter, gas lines and disco it was a horrible decade.

Oh man, I suppose I was wrong.

When I think of stagflation, I think of the late 30s.

 

[marduc]

Still a better market for us investors-----which is nearly all Americans. Next topic?

I am up 15% percent so far for the first 5 months of 2024.

If you are concerned about one particular day of knee jerk trading you should not be in the market, and you DEFINITELY should not be using one day of reactions to try to make some kind of political statement.

I gain or lose thousands of dollars on almost any given day, so why does today matter?

 

[justoneman]

I am up 15% percent so far for the first 5 months of 2024.

If you are concerned about one particular day of knee jerk trading you should not be in the market, and you DEFINITELY should not be using one day of reactions to try to make some kind of political statement.

I gain or lose thousands of dollars on almost any given day, so why does today matter?

One day? No, ten days.

 

[marduc]

One day? No, ten days.

I am still up 15% this year <shrug>

 

[justoneman]

I am still up 15% this year <shrug>

I am glad for you. Are you still in the market now?

 

[marduc]

I am glad for you. Are you still in the market now?

No I panicked and sold because of one super duper scary gloom and doom economic report.

WTF?

 

[justoneman]

No I panicked and sold because of one super duper scary gloom and doom economic report.

WTF?

So you are out of the market because you expect it to tank. Well, there you go.

 

[marduc]

So you are out of the market because you expect it to tank. Well, there you go.

Where the **** did you get that from my post. Do you not understand sarcasm bro?

 

[justoneman]

Where the **** did you get that from my post. Do you not understand sarcasm bro?

So you are in the market and thinking you will make money now? Not smart.

 

[Allan]

I am up 15% percent so far for the first 5 months of 2024.

You must be into NASDAQ equities?

 

[marduc]

You must be into NASDAQ equities?

Nope. Distributed portfolio with a very savvy financial advisor.

 

[Allan]

Nope. Distributed portfolio with a very savvy financial advisor.

Must be very savvy because they're beating every market.

 

[marduc]

Must be very savvy because they're beating every market.

Alright for the sake of accuracy, I just revisited. It's up 11 percent since January... I am still quite satisfied with that