Economic News

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heelinhell said:

Cloaked in technicalities, the implication of the “revenge” measure, as it’s quickly becoming known, is clear to analysts: If signed into law, it would further drive away foreign investors at a time when their once ironclad confidence in Treasury bonds and other US assets has already been shaken by Trump’s erratic trade policies and the nation’s deteriorating fiscal accounts.

For now, the market reaction to Section 899 appears muted, at best. Still, US assets as a whole have been underperformers this year as Trump’s policies put a dent in the narrative of the “America exceptionalism.”

The S&P 500 is up about 0.4% this year, compared with a 20% gain in the German benchmark and a 18% rally in Hong Kong. The Bloomberg Dollar Index slumped about 7%. The US Treasuries returned 2%, trailing the 5% gain in the global government bonds in dollar terms, according to data compiled by Bloomberg.
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This is a good place as any to inquire: My wife and I have bought a house and are selling our former house. The rate on our new house is 6.75% (ugh). We should net about $140K from selling our home after replenishing our emergency reserves. Loan amount on the new house is ~$400K and we have no PMI. We are on track for retirement and have a very modest taxable brokerage account. About 25 years to retirement, child's 529 is in good shape. No immediate need for the money and we can comfortably afford our mortgage payment.

Should we pay down our mortgage $140K, invest the money in a diversified equity fund, or a combination of the two? I'm leaning towards paying down the mortgage $50K and re-amortizing and investing $90K in a Total Market Index...
 
Willy said:
This is a good place as any to inquire: My wife and I have bought a house and are selling our former house. The rate on our new house is 6.75% (ugh). We should net about $140K from selling our home after replenishing our emergency reserves. Loan amount on the new house is ~$400K and we have no PMI. We are on track for retirement and have a very modest taxable brokerage account. About 25 years to retirement, child's 529 is in good shape. No immediate need for the money and we can comfortably afford our mortgage payment.

Should we pay down our mortgage $140K, invest the money in a diversified equity fund, or a combination of the two? I'm leaning towards paying down the mortgage $50K and re-amortizing and investing $90K in a Total Market Index...
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The thread below started in the direction I think you’re wanting 😀

H

Off-Topic Thread 'Stock Market/Investing/Fin Planning Catch-All'

To get this started, two links (updated daily) which give YTD performance of each company in S&P 500 and Nasdaq 100
S&P 500

Nasdaq 100
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Wowza. Checked my retirement accounts, 529s and investment accounts as today is 6/1 and May was insane. I had no idea it was the best month in 30 years. I guess having a lot of unstable months ahead of it led to a great performance.
 
HintonJamesHeel said:
Wowza. Checked my retirement accounts, 529s and investment accounts as today is 6/1 and May was insane. I had no idea it was the best month in 30 years. I guess having a lot of unstable months ahead of it led to a great performance.
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Not quite. It was the best **May** since 1990. It was the best month since . . . November 2023.
 

Consumers Are Financing Their Groceries. What Does It Say About the Economy?​

Increased use of “buy now, pay later” loans may signal shifting consumer habits, but could also be a troubling sign of financial stress.

...

Mrs. Hodge, 29, is hardly alone. Nearly a quarter of consumers using buy now, pay later loans finance groceries, up from 14 percent a year ago, according to a recent LendingTree survey. And it’s not just groceries; more Americans are using these loans to pay for recurring monthly bills, such as electricity, heat, internet and streaming services like Hulu.

Consumers can break up gasoline purchases into installments or pay for the burrito or burger order delivered to their home in bite-size pieces. People are going on social media to share tips on how to use the short-term financing even for rent.

While some borrowers say the loans are a useful way to manage cash flow, others say the increased use of buy now, pay later plans for day-to-day essentials is a troubling sign that more consumers are financially stressed.
 

Global Investors Have a New Reason to Pull Back From U.S. Debt​

After hedging currency risk, foreign investors no longer make money buying American bonds​


🎁 —> https://www.wsj.com/finance/investi...4?st=wLmyfo&reflink=desktopwebshare_permalink

“Foreign investors have plenty of reasons to be wary of U.S. government debt at the moment. Now there is another: They can often receive better returns buying bonds in their own countries.

The risk of a weaker U.S. dollar and the cost of protecting against that risk, are making American assets less attractive around the world. That comes at a bad time for the U.S. Treasury market, which is already contending with a darkening U.S. budget picture and the trade war….”

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ColdBlueSteel said:
Thanks, but is that all we’ve got on why this is bad? Was expecting a little more substance from the board that knows for sure what’s best for everybody and everything.
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Your boy is talking about bringing everything back to the US then this.

I am not sure, economically, if thus is bad, but how is this the America First that trump keeps selling?
 
HintonJamesHeel said:
I said it was after a lot of bad months but the s&p is green for the year so that’s a positive.
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And what do you attribute that to?

Is it the great economy of trump or is it that they are factoring in TACO and not overreacting to the bullshit he spews daily?
 
UNCatTech said:
And what do you attribute that to?

Is it the great economy of trump or is it that they are factoring in TACO and not overreacting to the bullshit he spews daily?
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I think the economy is so strong. Trumps madness has made everything underperform to what it likely would be if he had never started with the Liberation Day craziness.
 
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