US Stock Markets Continue To Reach Record Highs- Thanks Obama!

[Teddy B 17,252]

Neither do we. We pay off our c/cs every month, and never finance anything unless it's interest free and we can roll it into our budget without missing a beat.

We learned our lesson with Reaganomics, and since then we've lived debt free, which made us pretty much impervious to the WH policies. The wife comes from a culture where cash is king and she refuses to finance or pay interest on anything she buys.

I love getting 0% interest financing, it's free money!

[Sousuke 1,214]

Stocks have never been a good investment under these combinations of yield relative to 10-yr, Shiller PE, and market cap to GDP.

Ever.

It's a bad time to invest in stocks. Only reason I bought in in August is because of that dip, but that was down at around 14500 which put the market on the edge of where I will even be in it.

I agree. Everyone is scrambling to find that one underpriced asset hence I've been looking at GPRO over the last week. It looked like it had found resistance at about 19.80 last week and was starting to come back. I was ready to put in an order this morning but it started to collapse again.

[Expat1 971]

I agree. Everyone is scrambling to find that one underpriced asset hence I've been looking at GPRO over the last week. It looked like it had found resistance at about 19.80 last week and was starting to come back. I was ready to put in an order this morning but it started to collapse again.

Yeah I smacked Chevron in the low 70's and sold it a few weeks later. That was in the middle of all of that volatility. Haven't bought anything since, except for some EM funds that I believe will ride up on what HAS to be a falling dollar + the emerging markets were killed over a 2-3 month period and are cheap anyway.

The dips I bought in August/sept are soon to be sold.

Edited November 23, 2015 by Expat1

[Expat1 971]

The wife comes from a culture where cash is king and she refuses to finance or pay interest on anything she buys.

Mine too. She's awesome.

[GandD 5,966]

Well, you are certainly in the minority G. I don't carry much debt myself, car loan and a mortgage is about it. I try to pay off my credit cards every month as well.

Have you thought about the real estate market and maybe flipping some houses?

I'd love too but automotive is very boom and bust. I've learned to stay fairly liquid and live far below my means. Plus we have some other stuff coming up that is going to require having cash on hand.

I love getting 0% interest financing, it's free money!

That's a lie anyway. They just add in the cost to the bottom line. The people selling furniture for example, usually are farming their loans out to a third party. You're still paying interest.

[Sousuke 1,214]

That's a lie anyway. They just add in the cost to the bottom line. The people selling furniture for example, usually are farming their loans out to a third party. You're still paying interest.

Your saying its secretly lumped into the initial sale price? Like a hidden commission?

[GandD 5,966]

Your saying its secretly lumped into the initial sale price? Like a hidden commission?

One way or another absolutely. Somewhere some bank or security is loaning money for a consumer to finance the furniture. Neither of these loan money at 0% so what else could it be?

[Teddy B 17,252]

I'd love too but automotive is very boom and bust. I've learned to stay fairly liquid and live far below my means. Plus we have some other stuff coming up that is going to require having cash on hand.

That's a lie anyway. They just add in the cost to the bottom line. The people selling furniture for example, usually are farming their loans out to a third party. You're still paying interest.

Automotive??

When you purchase something for the same price anyone else would pay if they were paying cash or with a credit card, and then get the free financing, interest is not built into the price. I do this often, it's one of the perks of having a great credit score.

[Teddy B 17,252]

One way or another absolutely. Somewhere some bank or security is loaning money for a consumer to finance the furniture. Neither of these loan money at 0% so what else could it be?

The company making the loan could be getting a cut of the profit from the store that's offering the free financing. I have a no interest line of credit at two furniture stores and at Home Depot as well.

[GandD 5,966]

Automotive??

When you purchase something for the same price anyone else would pay if they were paying cash or with a credit card, and then get the free financing, interest is not built into the price. I do this often, it's one of the perks of having a great credit score.

I pay with cash and force them to drop it below what everyone else is paying. Or I don't buy it. They usually knock off quite a bit after someone arguing.

I work in automotive and every ten years or so the bottom drops out and everyone gets fired. I made it last time but I make a lot more than I used to. So I'm prepared if I don't make it next time.

[Teddy B 17,252]

I pay with cash and force them to drop it below what everyone else is paying. Or I don't buy it. They usually knock off quite a bit after someone arguing.

I work in automotive and every ten years or so the bottom drops out and everyone gets fired. I made it last time but I make a lot more than I used to. So I'm prepared if I don't make it next time.

Do you find this method works at the larger retail stores such as Walmart, Home Depot and Costco? Or is it more so the smaller mom & pop stores that will haggle with you?

Oh ok, I mentioned real estate and you jumped in with automotive and I didn't understand.

[GandD 5,966]

Do you find this method works at the larger retail stores such as Walmart, Home Depot and Costco? Or is it more so the smaller mom & pop stores that will haggle with you?

Oh ok, I mentioned real estate and you jumped in with automotive and I didn't understand.

Depends. With furniture it pretty much works everywhere because they're all really crooked. HHGregg will make a deal. Walmart, sams club, those types of stores don't make deals.

Stocks have never been a good investment under these combinations of yield relative to 10-yr, Shiller PE, and market cap to GDP.

Ever.

It's a bad time to invest in stocks. Only reason I bought in in August is because of that dip, but that was down at around 14500 which put the market on the edge of where I will even be in it.

Higher interest rates should cause higher return for stocks as well.

[OriZ 3,157]

Here is math anyone can understand:

In March 2009, the DOW hit 6,550...

Completely cyclical, nothing to do with Obama.

Since Obama took office in 2009, the Dow has averaged a 12% increase per year!

As a comparison we can look to the 8 Bush years from 2001 t0 2008 in which the Dow averaged a -7.12% decrease per year. Yes that's a negative 7.12%.

Completely Cyclical, AND can easily change if the completion of this cycle occurs in the next 12 months.

For real though, am I the only one that wants interest rates to go up?

Absolutely not. I've wanted them to go up for years. I think the Federal Reserve is a group of fools that have never actually helped the economy, only caused damage and created more volatility.

Stocks have never been a good investment under these combinations of yield relative to 10-yr, Shiller PE, and market cap to GDP.

Ever.

It's a bad time to invest in stocks. Only reason I bought in in August is because of that dip, but that was down at around 14500 which put the market on the edge of where I will even be in it.

Yes that was a good short term bottom to catch. It was clearly short term oversold at the time.

No. We need the bubble popped so that we can return to the business of normal investing.

Yes, it rarely is.

According to the metrics this is one of the (4) times in the history of the stock markets that it is not.

Oriz I believe is saying the same thing. I saw August coming in late April and got out. I am getting out again very soon. I missed no gains over the flat summer and my balance has climbed quickly over the last 3 months.

Right now is the second most hostile environment ever to invest in stocks based on technicals AND valuations. And yes the bubble has to pop so that things can go back to normal, at least till the next bubble...

Yeah I smacked Chevron in the low 70's and sold it a few weeks later. That was in the middle of all of that volatility. Haven't bought anything since, except for some EM funds that I believe will ride up on what HAS to be a falling dollar + the emerging markets were killed over a 2-3 month period and are cheap anyway.

The dips I bought in August/sept are soon to be sold.

Why do you think the dollar HAS to go down? I've been hearing that for 7 years from the hyperinflation camp whereas I have been in the deflation camp which has so far been right. I don't think the greenback's done. Too much debt has to implode. Be careful with that one man.

Already mentioned earlier the NYSE Composite(FLAT in 23 months) as an example for the broad market, here's a few more examples for small caps/broad market.

Even those who don't have a trading program can find all those charts on stockcharts.com using the symbols I will add.

Value Line Arithmetic Index($VLE) = up 3.2%.

Russell 2000($rut) = up 1.5%

Classic top formation process on the train to nowhere...

[The Nature Boy 7,659]

I'd love too but automotive is very boom and bust. I've learned to stay fairly liquid and live far below my means. Plus we have some other stuff coming up that is going to require having cash on hand.

That's a lie anyway. They just add in the cost to the bottom line. The people selling furniture for example, usually are farming their loans out to a third party. You're still paying interest.

Yup when we offer zero percent, it is usally in lieu of using dealer cash money back. Now the customer does not always know that , but you can always get a better sale price by financing at normal intrest rates, which for tier one is usally 1.75 to 2 %.

[OriZ 3,157]

Oh and as far as the cheese curds go, no offense to my fellow VTers but I actually prefer Wisconsin Cheese...