Personal Finance and Investing

progree

(11,463 posts)

28. It will be OK. Trump is the self-proclaimed Debt King. We've got lots and lots of debt

Sat Aug 1, 2020, 07:26 PM

Aug 2020

Last edited Sat Aug 1, 2020, 08:53 PM - Edit history (1)

so it'll be perfect.

On a related subject, they used to say that "earnings drive the market". Not anymore apparently. Now its unlimited borrowing by corporations and unlimited money creation and government spending at deficit-tripling levels, along with FOMO (Fear Of Missing Out) that drives the market:

Q1 S&P 500 Earnings per share:
2017 Q1: 27.46,
2018 Q1: 33.02,
2019 Q1: 35.02,
2020 Q1: 11.88 😲 👀
https://ycharts.com/indicators/sp_500_eps

We don't have the full Q2 earnings yet. But likely to be a lot worse, given that Q1 GDP declined by 5%, and Q2 GDP declined by 32.9% (both on an annualized rate basis. The actual GDP drops were Q1: 1.3%, Q2: 9.5%). So it would be pretty much impossible for Q2 earnings to be anything but a lot worse than Q1 earnings.

But stock market is doing great anyway, S&P 500 is down only 3.4% from its all-time high as of Friday 7/31/20 close.

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401k question [View all] SheltieLover Jul 2020 OP

Not CDs now. Interest rates are at historic lows. Look into money market funds, ETFs, index funds. brush Jul 2020 #1

Yes, but SheltieLover Jul 2020 #3

Instead of one or the other, think in terms of balancing your portfolio with a portion in CD's nt Shermann Jul 2020 #5

Tyvvvvm! SheltieLover Jul 2020 #8

TYVM! SheltieLover Aug 2020 #27

It will be OK. Trump is the self-proclaimed Debt King. We've got lots and lots of debt progree Aug 2020 #28

Im sure SheltieLover Aug 2020 #29

You have a bigger risk of running out of money in retirement than losing it in the market Fiendish Thingy Jul 2020 #14

As are money market funds. And are easily available. With CD I think you may have to pay question everything Aug 2020 #26

What are your timeframes? Shermann Jul 2020 #2

I was thinking SheltieLover Jul 2020 #4

That might be wise to see what shakes out after the trump debacle is over. brush Jul 2020 #6

Tyvvvvm! SheltieLover Jul 2020 #7

My broker said that it was better to wait until things shake out until after the elections SWBTATTReg Jul 2020 #9

Tyvvvvm! SheltieLover Jul 2020 #11

I'm sure there is a target retirement fund option brokephibroke Jul 2020 #10

Thx so much! SheltieLover Jul 2020 #12

Target funds UrbScotty Jul 2020 #15

TY For explaining! SheltieLover Jul 2020 #18

Get a good advisor (fee for service, not commission) and tell them your goals/needs Fiendish Thingy Jul 2020 #13

Ty so much! SheltieLover Jul 2020 #19

I've been trying to find one of those, a bit of a challenge. JudyM Jul 2020 #22

It Often depends on how much you have to invest Fiendish Thingy Jul 2020 #23

Thanks.The ones I've contacted all want the money moved to their institution, don't want to do that. JudyM Jul 2020 #24

Ah, I see. Then yes, you may have a harder time finding someone. Nt Fiendish Thingy Jul 2020 #25

Wise words from my financial adviser... BigmanPigman Jul 2020 #16

Same boat brokephibroke Jul 2020 #17

Absolutely! SheltieLover Jul 2020 #21

I'm looking at SheltieLover Jul 2020 #20

The only thing I will add is to point out that trying to time the market PoindexterOglethorpe Aug 2020 #30

Thank you! SheltieLover Aug 2020 #31