How bad is this economy going to get?

Discussion in 'West Mall' started by AustinHorn24, Apr 1, 2020.

  1. Monahorns

    Monahorns 10,000+ Posts

    So is the government wanting us to use coins so they can take them out of circulation?
     
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  2. Horn6721

    Horn6721 10,000+ Posts

    Driver
    Not to be stupid (ok I sdmit it) but what does that mean?
    What is a physical investment.? Is Apple?
     
  3. Driver 8

    Driver 8 Amor Fati

    It's is the linked article. Here is what it describes, basically hardware and software solutions as more people are working from home and industries being automated or replacing physical proximity with remote access
    The world is being wired together in many ways leveraging the internet
    Think about commercial office space for example - remote work has already displaced many office locations as people don't need to go there anymore and this will only increase
    Cloud-based communications and computation, teleconference, online apps vs local, telemedicine

    • From 2015 through the middle of 2020, the proportion of digital investment has steadily climbed while physical investment has dwindled. Behind this divergence is increased business spending on research and development and enterprise software.

    • Potential beneficiaries include cybersecurity companies, software companies and cloud providers. Cloud-based cybersecurity solutions are in greater demand as Americans rely more heavily on digital interfaces for their work and home needs. Software systems that help businesses manage through critical events are also paramount now and may remain so going forward. Such a program can help keep track of employees, send alerts and automate various workflows. Software systems also facilitate telemedicine, which has gained enormously in popularity since the beginning of the crisis.

    • The Covid-19 pandemic has accelerated innovation in digital transformation, coming to the aid of individuals and businesses in need of digital solutions, and we believe this trend will persist even after the pandemic is over. There has been a widespread shift from companies making physical investments to making digital investments, propelled further by the new work-from-home economy and the many changes it entails. What kind of companies stand to benefit from this evolution?
     
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  4. Horn6721

    Horn6721 10,000+ Posts

    well duh
    maybe if I had read the link.
    thanks
     
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  5. Austin_Bill

    Austin_Bill 2,500+ Posts

    If inflation goes like I think it will, 1's and 5's will be worth pennies and nickles very soon.

    Here is something interesting. If America starts to experience hyper inflation it will make our national and our personal debt very small. Lets say that you have a home with a 300K mortgage. we got through a period of hyper inflation where not only does everything go up but eventually so does our wages. If we maintain that mortgage it will make what was a 300K debt look more like a 30K debt by today's standards. The big issue is the period where we are spending 10 bucks a gallon for gas but still making today's wages.
     
  6. Monahorns

    Monahorns 10,000+ Posts

    Yeah, but it makes building wealth super hard. Average people have to invest in riskier and riskier types of investments.

    Or they just use Bitcoin or other commodities to store wealth not dollars.
     
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  7. AC

    AC 2,500+ Posts

    I think you got it Monahorns! Store wealth in Bitcoin not fiat currency. I have Gold only because my wife made me do it. I’m buying Ethereum today but just a small %. I’ve done very well since March getting out of stocks and only investing in hedges! I’ve even reduced savings accounts so that the money is in a store of value. Real Estate is a good one as Austin Bill said. If anyone does NOT do these things they’ll end up on UBI or some kind of Government dole. I would not wish that on any of you on this board.
     
  8. AC

    AC 2,500+ Posts

    Fractional shares of fine art and even fractional shares of farmland (income producing) Can be found at masterworks and Alto IRA. Both are safe investments that get you out of the dollar! Like a bond, but no fiat currency. 10% to 20% ROI annually!
     
  9. AC

    AC 2,500+ Posts

    I attached the Chapwood Index for inflation. Use that instead of CPI. CPI is close to 1/10th of real inflation. Fun times!
     
  10. Driver 8

    Driver 8 Amor Fati

    I have done well since March loading up on stocks but I agree with your overall point about a dollar hedge since the Fed is propping up the markets anyway
     
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  11. AC

    AC 2,500+ Posts

    Im a Macro Fundementals investor not a numbers investor. I’m trying to warn about inflation and a crash. Usually these happen slower than expected. So we have time. I’m not worried about you I know your on it Driver 8!
     
  12. Austin_Bill

    Austin_Bill 2,500+ Posts

    As long as there are strippers, there will always be a need for dollar bills. I mean, how do you shove a bitcoin in someone's g-string?
     
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  13. Joe Fan

    Joe Fan 10,000+ Posts

    The Las Vegas housing market is en fuego, during the pandemic

    "The housing market in Las Vegas is on fire," Las Vegas Realtors President Tom Blanchard said. "Let's admit it, I mean even with the pandemic and the economy the way it is, it is amazing to see that we had a median price range that went up to $330,000 in July."​
     
  14. Galvestonhorn

    Galvestonhorn 250+ Posts

    The housing market in Galveston is absurd. Shortage of lumber, houses going up everywhere. Houses that would’ve sold for 250k-300k a year ago are selling for 500k+ now....
    Vacation rentals booked all summer and a lot are already booked thru next summer.

    And you can’t find labor because everyone would rather sit around on their —-, smoke weed and drag on the unemployment tit. That’s been made way to easy.
     
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  15. Joe Fan

    Joe Fan 10,000+ Posts

    The Atlanta Federal Reserve's forecast for the 3rd Quarter: 26.2% — August 14, 2020. Up from 20.5% on August 7th.
    The next update is on Tuesday, August 18th

    [​IMG]
     
  16. AC

    AC 2,500+ Posts

    Basically there are two economies Joe Fan.

    1. Fed Liquidity induced Stock Market Rally since March, almost all in the Nasdaq FAANG stocks. Facebook, Apple, Amazon, Netflix, and Google. Tesla should be up there too. Low interest rates booming the housing market.

    2. Crypto Currency rally, Gold/Silver Rally, uncorrelated assets rally (real estate included). Uncorrelated being key because if the there is a debt bubble crash which every major hedge fund manager expects not to mention Global Macro Economists. Then number 2. will prosper and number 1. will be eaten away by inflation.

    Who will do better? I agree with you about Real Estate. I am loading up on improving my home and its been a great investment. But this debt bubble cannot keep growing. Eventually, something has to give.

    See Venezuela, Turkey, Argentina, Germany, Spain, Greece, and many many others. UK is looking really bad right now for this reason. Global Financial community is in a debt bubble. How long can it go???
     
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  17. Joe Fan

    Joe Fan 10,000+ Posts

  18. AC

    AC 2,500+ Posts

  19. AC

    AC 2,500+ Posts

  20. mchammer

    mchammer 10,000+ Posts

    Don’t fight the Fed (laughing to the bank).
     
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  21. Driver 8

    Driver 8 Amor Fati

    I have never made so much easy money, er, unrealized gains as in this market
     
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  22. AC

    AC 2,500+ Posts

    Hey my Bitcoin, Ethereum combo is like VY and our road grader OL circa 2005! Up 66% since April 3rd! Gold is hanging in there. More like Sam circa 2017.
     
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  23. nashhorn

    nashhorn 5,000+ Posts

    Right now I’m very happy. Tomorrow who knows.
     
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  24. Monahorns

    Monahorns 10,000+ Posts

    My funds haven't been transferred into my BTC and ETC funds yet. I started the process about a week ago. Is that normal?
     
  25. Driver 8

    Driver 8 Amor Fati

    What are you using, Coinbase?
     
  26. AC

    AC 2,500+ Posts

    Not normal something is wrong. Same question as Driver 8.
     
  27. Monahorns

    Monahorns 10,000+ Posts

    Yes. Coinbase.
     
  28. Driver 8

    Driver 8 Amor Fati

    Could be that they are slammed with verifying new accounts
     
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  29. AC

    AC 2,500+ Posts

    I use Kraken and the chat feature speeds things up when you talk to an agent!
     
  30. Monahorns

    Monahorns 10,000+ Posts

    Probably right. My purchases went through yesterday.
     

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