February '25 Inflation highest in a year

[QuarterMillionMan]

I thought it was interesting what the Treasury Secretary Scott Bessent said about equities (not political). Factoid, the top 10% of high net worth individuals own 88% of all the equities. The next 40% owns 12% of all equities. The remaining 50% don't own equities and the majority of these people are in debt.

[ua_guy]

I thought it was interesting what the Treasury Secretary Scott Bessent said about equities (not political). Factoid, the top 10% of high net worth individuals own 88% of all the equities. The next 40% owns 12% of all equities. The remaining 50% don't own equities and the majority of these people are in debt.

The statement echoes partially what I hear out and about. A lot of people have said "screw the market" because we're getting revenge on all the countries that treat us unfairly! Yeah! Statements like that don't appear to take into account how "the market" is probably responsible for any pension they may eventually get, the current health of their employer and it's ability to borrow capital, and employment. There's this whole world around them to which they appear oblivious, yet they'd be screwed without it. Kind of like cats, really.

[disneysteve]

I thought it was interesting what the Treasury Secretary Scott Bessent said about equities (not political). Factoid, the top 10% of high net worth individuals own 88% of all the equities. The next 40% owns 12% of all equities. The remaining 50% don't own equities and the majority of these people are in debt.

We throw that stat out periodically. It's very misleading, though. When they say 50% own no stock, that implies that they shouldn't care what the market does, but that isn't true. Many of that 50% actually do own stock and don't realize it. Maybe it's in their 401k. Maybe it's held by their pension plan. We all know that the average American isn't well educated when it comes to finance. "I don't own any stocks. All of my retirement plan is in a 2050 fund" not realizing that their fund is probably 80% stocks. And even people who truly have no direct investment in stocks still need to care what's happening in the market. If their employer stock is tanking, that may lead to pay freezes, hiring freezes, cancellation of expansion plans, layoffs, and ultimately closure. I agree that Wall St isn't Main St but they are far more linked than people tend to realize.

[QuarterMillionMan]

Yesterday I shorted Delta airlines. Today with the market rebounding, I decided to buy to cover all those Delta shares and took a $15 loss.

[disneysteve]

Yesterday I shorted Delta airlines. Today with the market rebounding, I decided to buy to cover all those Delta shares and took a $15 loss.

Market timing is a dangerous game.

[QuarterMillionMan]

This is California gas $4.89 and over $5 at a lot of places such as Chevron, Exxon, Mobil, Shell, etc. Crude oil is $62 a barrel now and the national gas average is $3. California is blaming the oil refiners for gouging. I blame California for its excessive taxes.

[ua_guy]

This is California gas $4.89 and over $5 at a lot of places such as Chevron, Exxon, Mobil, Shell, etc. Crude oil is $62 a barrel now and the national gas average is $3. California is blaming the oil refiners for gouging. I blame California for its excessive taxes.

You're welcome to do so, but realize CA state taxes do not account for the full price difference between the national average and what California stations are charging. The California taxes (state and municipal) are known, and you can do the math.

[QuarterMillionMan]

Anyone else regret jumping ship by selling off their equities with the DJIA rallying 2500 points today, I regret transferring my $92,000 in a large cap fund into bonds. I can transfer back but I think there is a 60 day waiting period.

[disneysteve]

Anyone else regret jumping ship by selling off their equities

Not me. I didn't jump ship. I did sell some equities last month but that was before everything came crashing down and I'm still happy I did it. I may sell some more late this year depending on how our income is shaping up so I know what taxes will look like. The difference is I'm not doing it as market timing. I'm doing it as part of the overall management of our portfolio, income needs, and tax situation.

[QuarterMillionMan]

I stand corrected and can transfer it back. It would only apply to the Bank Depository Fund (see below) which has a 90 day wash period.

[ua_guy]

Anyone else regret jumping ship by selling off their equities with the DJIA rallying 2500 points today, I regret transferring my $92,000 in a large cap fund into bonds. I can transfer back but I think there is a 60 day waiting period.

Nope. I'm still up by having left equities and will continue to do so because I believe the worst is still yet to come.

Despite today's market euphoria,

We've escalated a trade war with China with no end in sight.
Baseline tariffs remain at 10% on all imports.
Many large businesses and manufacturing giants have yet to announce Q1 earnings, but most will do so by the end of this month.
There is no guarantee that winds won't change before 90 days is up and we'll be taxing the daylight out of consumers.

And then, there are still ALL the other problems.

[QuarterMillionMan]

I envision the stock market to rally big time now. The DJIA may hit 50,000 in 2025 after a 3000 point rally in 1 day today. I'll be transferring back the $92,000 into the large cap equity fund.

[QuarterMillionMan]

Prior to the market volatility this month in April, I was at 80% bonds & 20% equities in this account. Other accounts even less equities. Now, in this account I may do 50 - 50.

[ua_guy]

I envision the stock market to rally big time now. The DJIA may hit 50,000 in 2025 after a 3000 point rally in 1 day today. I'll be transferring back the $92,000 into the large cap equity fund.

Rally...Based on? Hopes and dreams? I'm there with you if it does, but the greater fears of recession haven't gone away with today's announcements.

[QuarterMillionMan]

California gas prices are falling, TY Jesus.