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Who's looking forward to the next recession?

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    Who's looking forward to the next recession?

    After reading up on Singuy's recent stock thread, I've been curious of who's all planning or preparing for buying opportunities within the next recession. To add to it, my next question would be; what are you doing to prepare for it?

    Keep in mind, I think we all can agree there is no real way to actually "time" the market for bottoming out, and that dollar cost averaging is probably the best strategy in the long run.

    For myself I still contribute to 401K and Roth, but since the last 5-6 months I've held off on investing in more taxable investments, and putting more cash in my EF for short term savings. The main reasons was for potential house projects in the next year or two, or possible opportunities later with the market.
    "I'd buy that for a dollar!"

    #2
    I am. We have a lot of cash. Mostly because we can't decide if we are buying a different home, buying investment property, renovating/adding onto our current home. Either which way whatever we choose will take cash. So it'll make sense for us to have cash on hand to put into some sort of investment. Worse case we pay off like 40% of our home. Or we use it because DH loses his job.
    LivingAlmostLarge Blog

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      #3
      I'll echo what I said in the other thread.

      Over the past couple of years, we've gradually shifted our asset allocation more conservative. Last I check, it was down to 61% stock which is actually lower than I'd like so I'm working to get it back up to at least 65%. Our cash allocation has grown to 12%.

      My income has doubled from 2 years ago so we have a lot more going into savings overall. We're also accumulating more cash for a variety of reasons (next car purchase, home repairs, possible down payment on a 2nd home, etc.).

      If there is another housing crash, I would definitely see that as an opportunity to pull the trigger on shopping for that 2nd home so I want to be ready if that happens.

      I'm still maxing my 401k (already maxed for this year). That goes into a balanced fund that is 60/40. I'm still adding money to taxable stock investments every month all year and for the remainder of 2019 will also put the 13% of each check that can't go into the 401k anymore.
      Steve

      * Despite the high cost of living, it remains very popular.
      * Why should I pay for my daughter's education when she already knows everything?
      * There are no shortcuts to anywhere worth going.

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        #4
        Looking forward to the recession, not looking forward to the aftermath. Savvy savers/investors are not really affected by a recession, and may even come out on top like my friend who bought 5 houses in 2009 near a major university. The problem is most, if not more than 70% of Americans are NOT ready for any kind of recession. If the next recession is as bad as next time, we may just vote in another lunatic into the WH claiming x, y, z is the destroying America.

        Last time, Trump's strategist Steve Bannon blamed the highly educated Stanford/Georgetown graduated elites who took our public trust for granted and ran to the bank with our cash, crashing the economy, and not one person was held responsible. This resonated with a massive amount of Americans, hence putting Trump in power.

        No, the majority of Americans didn't vote for Trump because they are racist..they voted for him because the economic recovery was a slow burn with the highest growth went to shareholders, not paycheck to paycheck workers. In a sense, it IS the individual's fault for not participating in wallstreet that saw the biggest boom because individuals in the U.S use too much credit and are too financially illiterate to participate in such growth . But since no one likes to take responsibilities for their own action around here, the partisan creating machine that is our political system uses this to their own advantage and spoon fed voters the scapegoats that "caused" their demise.

        So yeah, looking for the money making opportunities, but the aftermath is going to be even more of a sh!t show.

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          #5
          We are long overdue for a blip in the economy. After living through a few of them I'm fully prepared but can't say I look forward to a recession, they can be pretty hard on a lot of the working class folks.
          If the right piece of real estate happened to become available cheap, I could jump on it.

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            #6
            Well, Iím not. Would like to retire next year and starting it off with a recession would be irritating.

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              #7
              I'm of a split mind. It would be mildly sadistic to eagerly look forward to the pain that most of the country will feel when the next recession hits. Selfishly though, it could potentially be fairly good for us financially, depending on the timing.

              We've been building up alot of cash lately, planning for our next move in April. Currently have ~20% of our non-RE assets in cash (a whopping 90% cash of non-RE/non-retirement money!). If the shoe drops ahead of our move, it could make our next home purchase a little cheaper. But that same effect could drag on the sale of our current house, so probably a wash there. But we're still maxing out our retirement accounts, and once we get the new house, we'll start putting money into taxable investments again. So any opportunity to pick up stocks on sale would be a boon for us.

              The only decision that will likely challenge me will be whether we focus all the money we can into paying off our next house (which is currently the plan, to have it paid off in ~3 yrs), or do we sit on the mortgage & funnel cash into the markets while they're low? Or maybe even pick up another rental property? Mark my word, whenever the recession does happen, I'll almost definitely be on here trying to convince myself one way or the other.
              Last edited by kork13; 10-30-2019, 06:42 AM.
              "Praestantia per minutus" ... "Acta non verba"

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                #8
                Nope, not looking forward to a recession. I guess if you want to get into real estate, a recession is a good thing. For everyone else who invests in stocks...I see no upside to a recession. If you buy a share today and that share increases by 15% in 1 year, you're up 15%. If that same share drops 15% and you buy, and a year later its up 15%, you're up 15%. Whats the difference? Just because you bought at a "discount" doesnt equate to more wealth. You could buy that share at a discount and it never increases again.

                I guess a recession is also good for those who want work done to their house and are sitting on cash. Less people will renovate during a bear market, you can probably get better deals on contractors.

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                  #9
                  You get way better deals from contractors so I've heard from friends. Same guy painted her house in 2009, in 2015 when she went to sell he charged her more than double.

                  LivingAlmostLarge Blog

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                    #10
                    My mother installed garage cabinets all throughout her garage for a little over 3k in 2010.. I got a quote from the same company but only need one wall of cabinets. He wanted almost 4k.

                    Also, My neighbor had someone build his pool. All the bells and whistle for 35k in 2009. Now i'm sure it's double if not more.

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                      #11
                      deleveraging and saving up more cash are the only things that I'm doing a little more of than normal
                      Brian

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                        #12
                        Originally posted by Fishindude77 View Post
                        We are long overdue for a blip in the economy. After living through a few of them I'm fully prepared but can't say I look forward to a recession, they can be pretty hard on a lot of the working class folks.
                        I'm torn as well, in terms of saying I look forward to a recession, with the impact on the majority of working class.
                        Last edited by disneysteve; 10-31-2019, 02:33 PM. Reason: fixed quote
                        "I'd buy that for a dollar!"

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                          #13
                          Originally posted by bjl584 View Post
                          deleveraging
                          How so?
                          Steve

                          * Despite the high cost of living, it remains very popular.
                          * Why should I pay for my daughter's education when she already knows everything?
                          * There are no shortcuts to anywhere worth going.

                          Comment


                            #14
                            A recession doesn't always mean a bear stock market, and vice versa. The stock market and the economy are two very different things.
                            How can you have any pudding if you don't eat your meat?

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                              #15
                              Originally posted by TexasHusker View Post
                              A recession doesn't always mean a bear stock market, and vice versa. The stock market and the economy are two very different things.
                              You've mentioned that before. Has there ever been a recession in the US during which the stock market started or continued a bull market? If so, what supported the bull market if the economy was suffering? How could sales and revenues decline but stock prices still go up?
                              Steve

                              * Despite the high cost of living, it remains very popular.
                              * Why should I pay for my daughter's education when she already knows everything?
                              * There are no shortcuts to anywhere worth going.

                              Comment

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