POLITICS Inflation /General Finance Insanity

Cool.

 

I’ll drink to that

 

They are saving that for the time wasting house investigation.

 

Not to my knowledge, though these drops have been somewhat frequent and regular.

 

These have all probably been inflated in price over a long period of time. A time when interest rates were so low that money was best put in "safe stocks".

 

So people are now pulling money out of the stock market due to rate increases?

 

Higher rates means less borrowing and less cash flow means less earnings means less stock investment.

Is my understanding, which could be wrong. And I don't think that's a rule, just an observed pattern over the decades with that explanation.

 

Apple and Tesla are going to have some real challenges with chips and having to move factories out of China.

 

Invest in the US. If it has to be done at cheaper labor costs, invest in central America.

 

Certainly pulling it out of companies that aren’t profitable given where the cost of debt is going.

Apple has held in there pretty well so far likely due to that.

 

Texas is going to see a boom and Mexico is going to greatly benefit too.

 

USA needs to get their power grid fixed, then.

 

Apple is definitely doing the best being only down 54% right now. Being a much more mature company than most probably helps.

 

Mature with meaningful cash flow and PROFIT. They’ll turn financial services just given their massive cash position and where rates are.

 

Microsoft will have profits this year too. Stock price has dropped like a rock this year though.

 

We’re in the best position in the world for the future.


There’s going to be a lot of pain for a lot of places as we keep pulling back and we’re not facilitating global trade through our navy.

 

Microsoft and Apple are trading at spring 2020 levels while the less profitable folks are trading below. Pretty much everyone has blown through the pandemic bubble at this point.

 

Do you think it gets worse next year?

 

I do. Tech while beat up probably still has some to give and rotations that saved some other sectors likely won’t hold. There’s still a ton of retail flow that I do think will dry up. But I’ve called 4 of the last 0 recessions.

 

I would say you are due then. My gut says 2023 is going to be a challenging year. Nothing like 2008 but a bit of a down year.