hitman, if the monthly rent is 1% or less the purchase price of the home, speaking strictly from a financial perspective, its better to rent the home than buy.
of course if there is a wife and kids involved with your living conditions, there are other quality of life factors involved and certain benefits with owning a home.
what i want to make clear to you guys is that im not going to be bearish all the time about everything, but here in the united states we are going to have an economic meltdown.
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tiznow, aapl getting taken to the slaughterhouse now.
of course if there is a wife and kids involved with your living conditions, there are other quality of life factors involved and certain benefits with owning a home.
what i want to make clear to you guys is that im not going to be bearish all the time about everything, but here in the united states we are going to have an economic meltdown.
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tiznow, aapl getting taken to the slaughterhouse now.
arty:Ok that makes sense. I live in Montgomery Alabama and I can buy a house on a 30 year fixed and the monthly payments are only 20% more (at the most) than for renting the same house. Plus on the fixed I would never have to worry about the "rent" increasing year to year.
Around here renters are considered "suckers" because they are just buying the houses for the landlords. Monthly rents typically go for 1% or more of the houses value.
Later
Around here renters are considered "suckers" because they are just buying the houses for the landlords. Monthly rents typically go for 1% or more of the houses value.
Later
i just don't see it DAW
i mean i think gold is a better investment than equities in the current situation and has been for years for that matter
but the gold/commodity bull in general was aided by a global boom and massive consumption, its not just strickly a dollar story, demand is a big part of the equation
my friend who doesn't follow the markets too closely was getting told by alot of people to buy silver
that doesn't sit right to me
US consumption obviously heading for the hills, question is what happens to the rest of the world besides japan (who is in a world of pain too)
dollar could still go down with commodities
seeing that today
i have no real opinion speaking nominally what stock market will do much into the future.
all these calls about 15k are worthless for nobody here knows what the fed will do.
if they print enough money the market will eventually rise and if they dont it will most likely fall.
all i am going to predict is that gold will outperform the performance of the major us stock indexes.
and for the millionth time, the dow is nearly a worthless indicator....a total of 30 bluechip stocks.
all these calls about 15k are worthless for nobody here knows what the fed will do.
if they print enough money the market will eventually rise and if they dont it will most likely fall.
all i am going to predict is that gold will outperform the performance of the major us stock indexes.
and for the millionth time, the dow is nearly a worthless indicator....a total of 30 bluechip stocks.
they can print all they want
we ain't seeing 15k in many years you can take that to the bank i'll eat crow if we do
when you economy is 75% consumption and that is toast nothing you can do
you can inflate like madmen but people can't afford shit cause they are losing homes and losing jobs and wages aren't keeping up with inflation
also realize that the USD quotes like it sitting at 75.5 currently are VERSUS A BASKET OF OTHER FIAT CURRENCIES
not directly tied to commodities and demand for goods AT ALL
a worthless and frankly also a foolish call for someone that knows what you know.
what if they change the composition of the dow jones to include a handful of stocks such as the qid, and commodity stocks such as gold and other high flyers?
then the "stock market" which is what the dow seems to be to too many would soar and meanwhile nearly every other stock could collapse and the dow jones index could soar.
:lolBIG:
they put shorts into the dow uh no, qid is just a trading vechile that uses options and other crap to get leverage, its not a company
its based on market cap (you gotta be a biggin) and only long stocks
that said you are correct to some extent think some gold miners slipped into the dow during the depression at some point i believe
but great depression 1 not a good indicator we were on a gold standard at the time and prices were held artifically low prior to the collapse, i guess some gold bugs will argue that the latter is happening today as well though
since when is the dow jones a market cap weighted index?
and the companies dont have to be a biggin (market cap) to be included.
i think you are incorrect.
Caterpillar (CAT) total market cap 42 billion...also a dow component, but Id hardly call that a biggin compared to other stocks that are not part of the index. Plenty of others like that among the dow.
General Motors GM 12 billion market cap but also part of the dow jones industrial index.
Clearly laughable that this is or should be considered a biggin.
Stocks like ge, msft, xom, csco, intc go up or down a few nickles and they lose or gain more than gm entire market cap.
:wink:
Clearly laughable that this is or should be considered a biggin.
Stocks like ge, msft, xom, csco, intc go up or down a few nickles and they lose or gain more than gm entire market cap.
:wink:
well dow is a farse we all know that, you are correct i was wrong with my market cap statement...
wilshire 5000 (total market index) won't be above its october high of 15800 for many years that better?
i'm not short one dow stock anyway to begin with
err...scratch that i'm currently short exxon via DUG my bad (flying today up 6.67% now)
3m MMM also part of the dow jones industrial index.
total current market cap 55 billion and thats after the stock has doubled since 2000.
companies like this are supposedly blinding what "the market" is really doing.
tech stocks such as cisco which are not part of the dow jones lost HUNDREDS OF BILLIONS OF MARKET SINCE 2000 TOP, but its not part of the dow index so I guess "the market" never lost that money.
Again its laughable and it also proves the average person and even typical investors havent a fucking clue to whats already happened and/or whats still happening.
:missingte
total current market cap 55 billion and thats after the stock has doubled since 2000.
companies like this are supposedly blinding what "the market" is really doing.
tech stocks such as cisco which are not part of the dow jones lost HUNDREDS OF BILLIONS OF MARKET SINCE 2000 TOP, but its not part of the dow index so I guess "the market" never lost that money.
Again its laughable and it also proves the average person and even typical investors havent a fucking clue to whats already happened and/or whats still happening.
:missingte
i agree :toast:
what's the weighting on dow anyway
like does exxon have much more clout than cat and MMM?
or are they equally weighted
nevermind the weighting total horseshit too as far as market cap
MMM and CAT near the top
Company Ticker Weight (%)
United Technologies UTX 6.5%
3M MMM 6.3%
International Business Machines IBM 6.1%
Caterpillar CAT 5.7%
American International Group AIG 5.1%
Johnson & Johnson JNJ 4.0%
Procter & Gamble PG 3.9%
Wal-Mart Stores WMT 3.8%
Coca-Cola KO 3.7%
Boeing BA 3.6%
American Express AXP 3.6%
Altria Group MO 3.5%
Merck & Co. MRK 3.3%
Citigroup C 3.3%
Exxon Mobil XOM 3.2%
General Motors GM 3.2%
E.I. DuPont de Nemours DD 3.1%
J.P. Morgan Chase JPM 2.7%
Honeywell International HON 2.6%
Verizon Communications VZ 2.6%
Home Depot HD 2.5%
Pfizer PFE 2.5%
General Electric GE 2.4%
Alcoa AA 2.3%
Microsoft MSFT 2.0%
McDonald's MCD 1.9%
Intel INTC 1.9%
Walt Disney DIS 1.7%
SBC Communications SBC 1.7%
Hewlett-Packard HPQ 1.5%
I'm not sure where people get the notion that a severe recession automatically equals deflation in most if not all asset classes....sounds like something the MSM would say
inflation is and always will be an increase in the supply of money
and let me tell you something, the presses are running at an all time high
not only is it possible, but highly likely that we are entering into a inflationary recession, if not outright inflatinary depression.....same as the 70's. they tried to print out of the 72-74 recession and you saw the result.
inflation is and always will be an increase in the supply of money
and let me tell you something, the presses are running at an all time high
not only is it possible, but highly likely that we are entering into a inflationary recession, if not outright inflatinary depression.....same as the 70's. they tried to print out of the 72-74 recession and you saw the result.
Can we get another witness up in this joint.
May the truth finally be told.
Amen.
www.ronpaul2008.com
uh no
inflation isn't just related to money supply
why are wheat prices skying higher than say corn prices (obviously corn up to with ethanol)
there is a drought in austrailia that is really affecting the market
soybeans are flying cause people planted less soygbeans with the corn boom
so you are seeing more inflation in wheat
demand/supply also plays a role in the inflation
not JUST money and the supply or lack there of!!!!!!!!!
the supply of money DOES (i'm not denying that) play a role but its not a 1 to 1 correlation with inflation!!
but you two seem to think supply/demand of the ACTUAL COMMODITY ITSELF is a minimal issue
tiznow, the dow is weighed based upon the share price of any particular stock within the index.
it has ZERO to do with the market cap of each stock and if a stock splits (again zero change in total market cap) the split is adjusted into the equation.
Example:
Stock 1 is 100 price per share and 10 billion market cap
Stock 2 is 20 price per share and 500 billion market cap
If dow jones was a useful and accurate index which one should have the greater weighting? Of course stock #2.
A 2% rise or fall in stock 2 price is greater than the entire market cap of stock 1.
However, the way the dow jones index is computed, stock 1 has a greater weighting.
This is why when you hear people talking solely about the dow jones when they are discussing "the market" they really have no clue about the stock market.
it has ZERO to do with the market cap of each stock and if a stock splits (again zero change in total market cap) the split is adjusted into the equation.
Example:
Stock 1 is 100 price per share and 10 billion market cap
Stock 2 is 20 price per share and 500 billion market cap
If dow jones was a useful and accurate index which one should have the greater weighting? Of course stock #2.
A 2% rise or fall in stock 2 price is greater than the entire market cap of stock 1.
However, the way the dow jones index is computed, stock 1 has a greater weighting.
This is why when you hear people talking solely about the dow jones when they are discussing "the market" they really have no clue about the stock market.
tiz all those things you mentioned are a result of inflation....not the cause
as such a fervent supporter of Dr Paul, I am a bit dissapointed you do not share his views on this subject
that is also why we do not completely see eye to eye on the next 1-24 months in the economy....although we both agree what the final results will be.
as such a fervent supporter of Dr Paul, I am a bit dissapointed you do not share his views on this subject
that is also why we do not completely see eye to eye on the next 1-24 months in the economy....although we both agree what the final results will be.
