quote:

Originally posted by grumpy1:
This is interesting in that mortgage rates have skyrocketed since the first of the year due to the crashing bond market.

It’s the opposite. The bond market is crashing due to rising interest rates.

Four or five days in row like today and the markets knee's will be on the verge of buckling. Of course it could bounce back up tomorrow. We are certainly entering uncertain times.

quote:

Originally posted by trapper189:

quote:

Originally posted by grumpy1:
This is interesting in that mortgage rates have skyrocketed since the first of the year due to the crashing bond market.

It’s the opposite. The bond market is crashing due to rising interest rates.

Correct in that mortgage rates go up as bond rates go up, I had not looked a mortgage rates for a long time and just took a look to see how high they had gone since knowing the 10 year treasury has doubled in failry short period of time.

Easy answer, short long bonds. I use TMV etf. It’s a 3x inverse bond etf. This is particularly relevant topic on day Dow is down 1300.

quote:

Originally posted by Jimbo Jones:
Anyone use Fisher Investments?

Oh yeah... something Im thinking about.

I-Bonds. Inflation indexed bonds.

https://www.cnbc.com/2022/05/0...-your-portfolio.html

I bought the $10,000 on-line through my trust. And then talked to the Treasury today and found out you can buy ANOTHER $10,000 using an individual account even if the same social is used. Sure enough I was able to buy another $10,000. And I have set it up with my accountant so that I get at least $5k in refunds each year so I can use form 8888 to buy $5k in "paper" iBonds.

So I'm planning on buying $25,000 each year at least while I'm working Corporate America.

IIRC, can't withdraw until 1 year later and there is a penalty if withdrawn within 5 years.

I just invested in a still... if my portfolio continues to drop, I can afford to make my own liquor...

I am about 10-12 years from retirement. My investing philosophy has gotten pretty simple:

1. Quality (good current books and good future prospects)
2. At a good price (don’t want to ever pay too much for a stock)
3. Pays a reasonable dividend (always reinvested)

I have come to realize the long term wisdom from many of of Warren Buffetts quotes. I am sure their wisdom will be born out again over the coming years:

“Price is what you pay. Value is what you get.”

“It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.”

“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

“Our favorite holding period is forever.”

“ Real Property seems to be what most people are doing”

When my big kid asked my mo how she and my dad made their money, she told them they invested in land.
Granted they sold a business in Tampa, and the home. And turned that into 4 acres. Then bought and sold several acres they got at a steal. Then bought and sold 2 acres, after 10 years…

They have come out ahead…plus my dad worked his ass off & mom worked for a salary….

LAND - that’s where you can make money….right place, right time.

My great uncle made his first million off selling family land (he was a lawyer- who’d fuck anyone over for a dime) then he bought land because he heard they were gonna put in a highway.

Guy died a multi-millionaire, but I don’t think he’s in a good place now.

If I had extra money-I’d buy land, then sell it.

*Snipped stuff I agree with*

quote:

“Our favorite holding period is forever.”

OK, wouldn't you think that Buffet is wealthy from selling well (a lot more often than most), rather than holding literally forever? I guess you could make future generations rich if you died holding profits. But where's the fun in that?

quote:

Originally posted by MikeinNC:
If I had extra money-I’d buy land, then sell it.

I've got extra money and I wouldn't buy land right now if you put a gun to my head as I feel we're heading into a large downturn in real property values.

It depends on what it is and how much it is. Remember, They aren't making any more of it. It is wise to have some investment real estate in your portfolio imho

Yes, my equities and bonds are down now over 18% YTD but had a 80% rise last 6 years and my house is way up
so net worth has not changed much.