The Long Term Investor

Like a lot of people and the general markets....even though my gain today was moderate....I did hit a new personal all time high. Very enjoyable.

At this point in life.....I hope.....I am investing and building up assets for the security of my children and grandchildren.

 

This is good news for AMAZON shareholders.

This year's Prime Day broke sales records

https://www.cnn.com/2021/06/23/business/amazon-prime-day-2021-results/index.html

(BOLD is my opinion OR what I consider important content)

"New York (CNN Business)Shoppers aren't showing any signs of getting tired of Amazon Prime Day, even though some sellers had said they weren't planning on offering deals this year.

Amazon (AMZN) said that Prime Day, held this past Monday and Tuesday, was the biggest two-day sales period for third-party sellers in the company's history. Amazon said sales from third-party merchants outpaced its own sales.

Amazon also said Prime members purchased more than 250 million items worldwide on Prime Day. Robotic vacuums, coffee makers and Crest Whitestrips were some of the top-selling products.

"Amazon's Prime Day was aimed to boost new Prime member signups and enhance its relationship with existing members to grow the ecosystem, a mission we believe Amazon accomplished," Joseph Feldman, a retail analyst at Telsey Advisory Group, said in a research note Wednesday.

Amazon benefited this year from a favorable economic environment, a wider product assortment — particularly in its own private-label brands— and increased participation from third-party sellers, said Feldman.

Walmart (WMT), Target (TGT), Costco (COST), Best Buy (BBY), Macy's (M) and others offered up deals of their own to capitalize on the surge in online traffic driven by Prime Day.

Overall, online spending during the two-day event surpassed $11 billion, a 6.1% increase compared to last year's Prime Day held in October, according to Adobe Analytics, which tracks more than 1 trillion visits to US retail sites and over 100 million items across 18 product categories.

The "halo effect" of Prime Day gave "both large and small online retailers significant revenue lifts," said Taylor Schreiner, the director of Adobe's digital insights."

MY COMMENT

What a significant event. A single company doing multiple BILLIONS in sales in........two days. Of course the stock was down significantly today.

They are ONLY up by 8.24%...this year. I will....repeat....they need to split that stock. They need to create some PR and BUZZZZZZZ for the company. They need to reward their LOYAL shareholders.

 

WELL.....we are open. On paper it seems pretty good. But...I dont see much real enthusiasm.....seems blah and shallow to me.

NIKE is driving the day after BLOW OUT earnings. While....NVIDIA and AMAZON are both down. Like a broken record...I will say it again....the recent action....or actually lack of action and weakness in AMAZON...is primarily due to the high stock price. This is NOT........a BIG MUTUAL FUND disguised as a single company..... with many many businesses like Berkshire. This is a single RETAIL company. People are NOT going to jump up and down for the chance to pay $3000 to $4000 per share. They need to MAN-UP and split the stock. They are.....hurting....their shareholders and their company by this IRRATIONAL refusal to make the stock more affordable and more interesting to smaller investors.

 

As to NVIDIA......down so far......nothing can go up day after day without a pause once in a while. We are going to start the final run to the split date soon. There is nothing wrong with a pause in the price increase once in a while.

 

Looks like people....regular people....are confident in the future.

U.S. Equity Funds Receive Biggest Inflow in 14-Weeks Lipper

https://money.usnews.com/investing/...nds-receive-biggest-inflow-in-14-weeks-lipper

(BOLD is my opinion OR what I consider important content)

"(Reuters) - U.S. equity funds attracted massive inflows in the week to June 23, as investors bet on a faster economic recovery from the pandemic and shrugged off concerns the Federal Reserve might raise interest rates sooner than expected.

Data from Refinitiv Lipper showed investors put a net $16.1 billion into U.S. equity funds in the week to Wednesday, the most since the week ended March 17.

Graphic: Fund flows into U.S. equities bonds and money market - https://fingfx.thomsonreuters.com/gfx/mkt/jbyprzjyxpe/Fund flows into U.S. equities bonds and money market.jpg

The Nasdaq and S&P 500 U.S. stock indexes scaled new peaks this week, with investors cheering data that showed record U.S. factory activity in June..

U.S. large-cap funds attracted a net $13.4 billion, their biggest inflow since January 2018, while mid-cap funds and small-cap funds lagged behind.

The data showed U.S. growth funds received a net $1.5 billion, while value funds faced outflows worth $2.4 billion.

The higher inflows into growth stocks came as investors shifted their focus back to tech and other high-flying growth stocks as the allure of value stocks diminished after the Fed's hawkish tilt last week.

However, Mark Haefele, chief investment officer at UBS Global Wealth Management, said value stocks could regain the lead over growth stocks.

"The forward price-to-earnings ratio of growth relative to value is at a post-dotcom bubble high, at close to a 1.8x premium," he said in a note.

"Simply stated, relative valuations for growth companies look vulnerable, especially if interest rates rise.”

Graphic: Flows into U.S. equity sector funds - https://fingfx.thomsonreuters.com/gfx/mkt/rlgpdrwyqpo/Flows into U.S. equity sector funds.jpg

Graphic: Fund flows into U.S. growth and value funds - https://fingfx.thomsonreuters.com/gfx/mkt/xegvbzkdevq/Fund flows into U.S. growth and value funds.jpg

Meanwhile, U.S. money market funds faced $29.5 billion worth of outflows, the biggest in six months.

U.S. bond funds had inflows worth $2.8 billion in the week, the lowest in four weeks.

U.S. municipal bond funds attracted $1.73 billion in inflows, while U.S. taxable bond funds saw a net $2.06 billion of inflows, the smallest in 15 weeks."

Graphic: Flows into U.S. bond funds - https://fingfx.thomsonreuters.com/gfx/mkt/xklvyxkwopg/Flows into U.S. bond funds.jpg"

MY COMMENT

SO........people are rotating back into BIG CAP GROWTH. OK.....so what.....I dont see much of interest in this "rotation stuff" that the media is pushing lately. Value.....good. Big cap growth....good. Both or a combination of both will THRIVE over the long term going forward. Although I suspect that big cap growth will substantially win out over value.

This data shows the confidence in the markets at the moment. BUT...this sort of short term data is far from secure and can turn ona dime depending on the news of the moment.

 

I just looked for the first time today....at my account. Very surprised to be WAY up. I am hitting new record highs every day.....as are probably most investors at the moment. I expected to be slightly positive today with some of the MAJOR BIG CAP tech stocks being weak.....but....I am at the moment showing BIG gains. Way over the level of the SP500 at the moment.

NIKE is my BIG GUN today...being up by 13.68% at the moment on AMAZING earnings yesterday. My other leader today is HONEYWELL which is up by 1%.

My DOGS today.....MSFT, GOOGL, NVDA, and AMZN.

My little portfolio of 10 stocks has been in a sweet spot lately. Even with daily losers....other holdings are picking up the slack. if we continue like this to the close I will hit my 5 days in a row of gains.

NOW.....all we need to do over the rest of the day is to get those big cap tech stocks into the green. I am not confident it is going to happen...but there is a chance that the rising market will PULL them up some by day end. If they dont get there......yes....I dont care. My great gains today in TOTAL PORTFOLIO value is very satisfactory......I am happy to take what the market wishes to give me.

 

YES.....the same simple stuff. But...it NEVER goes out of style.

3 Things Investors Can Learn From Warren Buffett
Whether you’re new to the market or not, there’s a lot to learn from Berkshire Hathaway’s leader.

https://www.morningstar.com/articles/1043713/3-things-investors-can-learn-from-warren-buffett

(BOLD is my opinion OR what I consider important content)

"Would you take investing advice from someone who was rejected by Harvard Business School, plays bridge for 12 hours each week, and drinks over 60 ounces of Coca-Cola daily? What if I told you that same person is Warren Buffett?

Warren Buffett is the chairman and CEO of Berkshire Hathaway (BRK.A)/(BRK.B). Buffett, age 90, is a phenomenon when it comes to investing. Even though Berkshire today is among the 10 largest public companies in the world, it did not start as a diversified holding company. It was founded as a textile manufacturing company and largely remained one until Buffett and his investment firm took control in 1965. Since then, Buffett has expanded the business into other industries and acquired companies to make Berkshire Hathaway the successful conglomerate it is today.

Berkshire has done a phenomenal job of building wealth for its shareholders over time, though returns have slowed versus the broader market during the past several years. Most agree that Buffett is still a masterful investor with a lot of wisdom to share.

Here are just a few things that investors of all experience levels--including those new to the market--can learn from Buffett. Those who want to learn even more can read Buffett’s annual shareholder letters and watch Berkshire’s annual shareholder meetings.

Don’t Overpay for Stocks, and Be Patient
Buffett has countless investing dogmas and philosophies. But nothing speaks more truth and volume than his golden rule: “Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1.”

This might be an easy rule to follow if you are an investing master like Buffett himself, but for the rest of us, it may seem like an impossible goal to accomplish. And truth be told, even Buffett has made losing investments in the past. But there is a deeper truth to this golden rule: Because no investment is without risk, approach investing sensibly.

That means a few things. First, research your investments--in other words, know your companies. Do not get caught up in a world of speculation, says Buffett. Being an informed and decisive investor will deliver greater financial gains in the long term.

Then, make sure you’re not overpaying for a stock. Instead, demand a margin of safety. A margin of safety can be achieved when an investor purchases a stock that is believed to be trading lower than its intrinsic value. For example, if you believe a company to be worth $50 per share, then buying the company at any price below $50 will give you a margin of safety and that margin gets wider the lower your purchased price is. If you buy that company at $40 per share, then you have a $10, or 20%, margin of safety. This is crucial because it offers investors a room for error when purchasing stocks and Buffett believes this principle to be the cornerstone of investment success.

Once you have done your research and purchased companies that provide a margin of safety, hold onto them. In investing, time is your best friend. Being patient and having your portfolio grow over time with compound interest is one of the best lessons Buffett teaches us. Some of Buffett’s investments have been in his portfolio for almost 50 years. He purchased See’s Candies in 1972 and purchased more than $1 billion worth of Coca-Cola (KO) stock in 1988, both of which he is still holding today.

Favor Companies With Moats
Buffett has always looked for companies that he understands to have competitive advantages over others.

He once said:

"The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage. The products or services that have wide, sustainable moats around them are the ones that deliver rewards to investors."


Since his purchase of Berkshire Hathaway, Buffett has excelled at identifying and understanding companies with moats. As Karen Wallace, Morningstar’s Director of Investor Education, explains: “What has traditionally benefited Berkshire has been the firm's ability to sniff out companies with moats, and take the excess cash flows generated by these companies and invest them back into projects that earn more than their cost of capital over extended periods of time.”

At Morningstar, we believe economic moats are crucial in evaluating companies because they tell us a company’s competitive advantage over others and how sustainable that advantage is. Companies can establish moats through many different avenues, such as their cost advantage or their intangible assets like brand value.

When in Doubt, Index
Even with the first two pieces of advice from Buffett, investing in individual stocks is not easy. It can take a good deal of time to stay on top of individual stock investments--and if you’re not diversified enough, the risk of loss can be sizable. That is why this last lesson might be the best one of them all: When in doubt, index.

Buffett has advocated for index funds on many occasions. In Berkshire's 2016 shareholder letter, he said: “Over the years, I’ve often been asked for investment advice, and in the process of answering I’ve learned a good deal about human behavior. My regular recommendation has been a low-cost S&P 500 index fund.”

Index funds are designed to track the performance of the benchmark index, like the S&P 500. Low-cost index funds can offer diversified portfolios with less risk than investing in individual securities. A broad market, low-cost index fund is a great core holding in any equity investor’s portfolio: It’ll provide you with access to the entire stock market in just one investment.

MY COMMENT

MUCH of the above is exactly why I own the ten stocks that I now own. The part about the....MOAT.....is also why I do not have any interest in TESLA....at the moment. I....do not....believe they have any real competitive advantage over the rest of the EV companies as well as the big auto companies once EVERYONE is doing EV cars in 5-10 years. At that point there may not be much of a market for the environmental credits that provide nearly ALL of Tesla's income and profit. I also.....dont like their interior car design. I dont see the average person wanting a car with ZERO controls....just a computer screen. I think that design is a HUGE mistake. It may appeal to the techies or some younger consumers.....but....is is not going to be a hit with "regular" people in a mass market.

 

Those NIKE earnings were....WAY, way, way.....beyond any expectations.....so....I think there is some truth in this little article.

Nike stock could surge another 50% after monster earnings report: analyst

https://finance.yahoo.com/news/nike...onster-earnings-report-analyst-112528729.html

(BOLD is my opinion OR what I consider important content)

"Nike's stock is shaping up to be a slam dunk in investors' portfolios for the foreseeable future after a blowout earnings report Thursday evening sent shares soaring, most analysts contend.

"[Nike] shares should rise another 50% from here," said Jefferies analyst Randal Konik in a research note to clients. Konik rates Nike as his top pick with a $200 price target.

Added Konik, "Nike is one of the best brands on the planet, the global consumer is very strong, the company is furthering its connection with its consumer through tech, and the company's distribution model is moving away from wholesale. All this means NKE should see strong absolute and relative revenue growth, rising margins and accelerating EBITDA$ [earnings before interest, taxes, depreciation and amortization] and free cash flow."

Hard to argue with that stance.

The footwear giant reported record sales in North America for its fourth fiscal quarter. Sales surged 141% from last year, and 29% compared to the fourth quarter of 2019 (aka pre-pandemic). Digital sales soared 147% from the fourth quarter of 2019. Even China sales — where Nike has been swept up into consumer protests over its stance on Xinjiang — increased in all product categories in the quarter (led by a 34% increase in equipment sales). Jordan brand sales rose an impressive 31% to $5 billion in Nike's just completed fiscal year.

Nike's stock jumped 13% to $149.50 in pre-market trading on Friday. Investors also rejoiced over Nike's very upbeat full-year outlook. The company sees sales surpassing $50 billion for the first time and gross profit margins gaining in the range of 125 basis points to 150 basis points.

Given Nike's scale, analysts believe Nike's outlook is shocking and achievable.

Nike's size and budget prove a key, long-term competitive advantage. The brand has no parallel in history when it comes to North America size/scope. With a leading ad budget fueling industry-leading dollar growth, we expect ongoing gains," said BMO Capital Markets retail analyst Simeon Siegel.

Siegel reiterated an Outperform rating on Nike and issued a $174 price target."

MY COMMENT

A perfect example of a stock that fits the BUFFETT view in the post above....especially for those of us that got in some time ago. This an an ICONIC....ALL AMERICAN....company. Is there any company that is even a remote threat to them?

 

WOW.....what a nice day and nice personal GAIN to close the week. Nicely green today plus beat the SP500 by 1.10% today. My winner of the day....NIKE....up by 15.53% in ONE DAY. My losers....APPL, AMZN, and NVIDIA.

We might be in the middle of a little SUMMER RALLY.

DOW year to date +12.51%
DOW for the week +3.44%

SP500 year to date +13.97%
SP500 for the week +2.74%

NASDAQ 100 year to date +11.30%
NASDAQ 100 for the week +2.10%

NASDAQ year to date +11.42%
NASDAQ for the week +2.35%

RUSSELL year to date +18.21%
RUSSELL for the week +4.32%

I made up some ground on the SP500 this week....going to a year to date return of 12.6%. BUT.....I STILL trail the SP500 by 1.37% for the year. I am STILL waiting for my BIG CAP TECH companies to come back alive and push me beyond the SP500. Really...nothing....to complain about.....I will GLADLY take where I am considering that we are only HALF WAY though the year. On the flip side.....considering that we are only half way through the year......there is no way to know how we will end up six months from now........and....if the current gains will hold.

 

Off to a show tonight. Load in and sound check at 5:00 and than the show begins at 8:00.

 

The MORE articles like this the better. BULL MARKETS love to climb a wall of worry. For at least the next year perhaps two....it is ALL about EARNINGS and the RE-OPENING. NOTHING ELSE.

Haters Everywhere in Stock Market After S&P 500’s Big First Half

https://finance.yahoo.com/news/haters-everywhere-stock-market-p-201403623.html

BOLD is my opinion OR what I consider important content)

"(Bloomberg) -- People were already worried about equities six months ago. Now, after the S&P 500 Index defied everything from nosebleed valuations to inflation to post one of the best first halves ever, they’re downright paranoid.

Wall Street strategists, never ones to restrain their enthusiasm when it’s warranted, warn that the gains have played out. Short sellers are circling, with wagers against the largest equity exchange-traded fund rising to the highest level this year. Star investors like Michael Burry have warned of the “mother of all crashes” in meme stocks.

And yet, from reversals in speculative names to a hawkish shift in Federal Reserve policy, things that could have put an end to last year’s rally in equities have failed to. Instead, amid steadfast retail buying, about $6 trillion has been added to equity values in 2021, with the S&P 500’s 14% rally putting it on course for its second-best January through June period since 1998.

“The inflows of money are still so good,” Mike Wilson, chief U.S. equity strategist at Morgan Stanley, said in an interview on Bloomberg TV and Radio. “The money does not leave the market. It just looks for another place to go.”

While bears are getting bolder, the bulls have history on their side. In the 27 years when gains in equities were this strong through the first six months, three-quarters of the time stocks continued to march higher by December.

The S&P 500 climbed for the fourth week in five as President Joe Biden’s bipartisan $579 billion infrastructure deal revived leadership in economically sensitive shares like banks and energy. The Russell 2000 Index of small-caps jumped more than 4%, the most since March, while the tech-heavy Nasdaq 100 advanced for six straight weeks, the longest winning streak in five months.

Valuations that started the year at 23 times earnings -- near the highest since the dot-com era -- have shrunk, thanks to the fastest profit expansion in a decade. Nevertheless, at 21, the current reading is still above the five-year average of 18. Moreover, this quarter likely marks the peak of a profit recovery from the pandemic recession, with forecast growth slowing from 63% now to 4% early next year.

Throw in the threat of tax hikes and Fed tapering, and it’s not hard to see why Wall Street strategists call for caution. Their average year-end target tracked by Bloomberg stood at 4,213, a 1.6% decline from the index’s last close.

Burry, who rose to fame on his winning mortgage bets from the 2007-2008 housing crash, joined the chorus this month, issuing a series of tweets warning individual investors about losses “the size of countries” in the event of crypto and meme-stock declines.

Short sellers, almost driven into extinction amid an equity rally and January’s short squeeze, are reloading. Bearish bets on the SPDR S&P 500 ETF have climbed to 5% of its stock outstanding, from less than 2% at the start of this year, according to IHS Markit data. Meanwhile, demand for protection against losses in coming months is rising in the options market.

“You’ve got a market that has kind of run ahead of itself,” said Kevin Caron, portfolio manager for Washington Crossing. “Now it’s more likely you’re going to get some volatility in the market for the next six months or so until earnings and fundamentals fill in under stock prices which have become quite rich.”

Yet pushing against the wall of worries are the growing numbers of retail traders who bought the dip during the pandemic bear market and have since become the staunchest allies of this bull market. A week ago, when the S&P 500 dropped more than 1%, retail investors poured a record $2 billion into equities, according to data compiled by Vanda Research.

And there is no indication they’re retreating soon. According to a report by investment adviser Betterment LLC, 58% of the 1,500 day traders surveyed plan to trade even more as pandemic restrictions are lifted. Only 12% said they expect to trade less.

Goldman Sachs Group Inc. strategists led by David Kostin raised their forecast for households’ net equity purchases for the full year to $400 billion from $350 billion after Fed data showed robust buying from the group.

“The trade-off households face between equities and other asset classes favors equities through year-end given anemic money market and credit yields,” Kostin wrote in the note. “Additionally, any signs of a sustained increase in inflation would favor equities over bonds or cash.”"

MY COMMENT

FUNNY.....I see a number of articles about the RISE of the short sellers today. ACTUALLY......these articles are probably driven by the short sellers trying to push their agenda.

ARE we at peak profit? I dont think so in the slightest. In fact we have seen LESS than half the country even re-open from the pandemic. The majority of the EAST coast and WEST coast are STILL closed and are just starting to re-open. We have many more months to go to reach PEAK PROFIT. HALF or more of the ENTIRE WORLD is STILL cowering in fear of the pandemic....there is a long way for companies that serve the world to increase profits. SO.....NO....I dont buy this argument....it is simply speculation......with an agenda.

VALUATIONS are heading in the right direction....based on company earnings and the data.....as the article shows while trying to create a negative from a positive.

Where else are you going to put your money? Bonds? Metals? Crypto? Stocks and funds are the ONLY option and will continue to be so for a long, long, time going forward.

YES......there WILL be corrections and bumps along the way.....as always.

HERE are some of the other.....jump on the bandwagon of the day......media articles on this topic today. You have to hand it to the short sellers.....they are masters of MEDIA manipulation. Of course the media.....loves to be manipulated on this sort of topic.

As rally in U.S. stocks rolls on, signs of caution grow
https://finance.yahoo.com/news/rally-u-stocks-rolls-signs-182822758.html

Rising market uncertainties to test investors
https://finance.yahoo.com/m/4e52aac8-e4fe-3a2c-9ac6-4993f04caf2e/rising-market-uncertainties.html

PEOPLE used to react to this "stuff' from the so-called experts.....ie: short sellers pushing their agenda. ACTUALLY this is one area where there actually.....is.....a new normal. People look at this sort of JUNK and now say....yeah right. No one cares.

AND.....for the majority of people with a short memory.....we WERE in the middle of the greatest ECONOMY in history....in the years leading up to the pandemic. We have a long way to go to get back to where we were pre-pandemic. I DO agree that TAXES, and GOVERNMENT policy....WILL...be a big drag going forward......ASSUMING....they can actually pass any of that stuff into law.

 

I have noticed a DISTINCT lack of interest in and talking about the RED HOT real estate market here locally in the past few weeks. It is still happening....but people have settled into that reality and it is no longer a hot topic.

In my little corner of the world.....4200 homes...we continue to average about 15 active listings at any one time. Prices are STILL high.....with 7 of those listings being OVER $1MILLION and 8 being below. The LOWEST active price is $600,000. A year or two ago homes were generally available as low as $350,000 on the low end of the market.......and.....the average number of listings at this time of the year would be about 140 to150. HIGHEST listing right now in my area is $10MILLION.

 

My retirement LIFETIME INCOME is provided by six income annuities for the life of myself and my wife......AND......Social Security. I ran into this little article today on the projected COST OF LIVING increase that we might see to Social Security for 2022. THIS....is great news for ANYONE that is collecting Social Security.......and....is one BENEFIT of inflation....transitory or not.

Social Security cost-of-living adjustment for 2022 could be higher based on rising consumer prices

https://www.cnbc.com/2021/06/16/soc...could-be-higher-based-on-consumer-prices.html

(BOLD is my opinion OR what I consider important content)

"Key Points

• Rising consumer costs like gasoline and car prices are helping to push the estimate for next year’s Social Security cost-of-living adjustment higher.
• The size of any bump retirees and other beneficiaries may see depends on four more months of data.
• How the Federal Reserve decides to handle interest rates will also have an influence on how much those monthly checks may increase.

Rising consumer costs have helped push the latest estimate for next year’s Social Security cost-of-living adjustment to 5.3%.

Whether that will actually be the bump retirees see to their monthly checks in 2022 depends a lot on the economy, including whether the Federal Reserve decides to raise interest rates.

The 5.3% estimate was calculated by The Senior Citizens League, a non-partisan senior group, based on Consumer Price Index data from the Bureau of Labor Statistics through May.

If that amount were to go through, it would be the highest annual adjustment since 2009, when benefits saw a 5.8% boost.

In 2021, Social Security beneficiaries received a 1.3% increase to their monthly checks.

The Senior Citizens League previously estimated the COLA for 2022 could be 4.7%, based on data through April.

Social Security’s annual cost-of-living adjustment is calculated from the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. There is still four more months of data before the official estimate for next year is determined.

The month-to-month jump in The Senior Citizens League’s estimate is due to rising costs caused by inflation, according to Mary Johnson, Social Security and Medicare policy analyst at the Senior Citizens League.

The price of gasoline saw the biggest hike, rising 56.2% from May 2020 to May 2021.

Used car and truck prices rose by 29.7% in that one-year period.

Other day-to-day items also saw a spike in prices. Bacon rose 13%, citrus fruits are up by 9% and milk is up 7.2%.

Not everything rose, however.. The cost of ground beef, for example, declined by 5.8%.

How those prices shape up in the coming months — and whether next year’s cost-of-living adjustment stays the same, goes up or declines — will depend on those consumer costs.

Any action by the Federal Reserve could change the trajectory of those prices. Though the Federal Open Market Committee is meeting this week, the central bank is not expected to announce any changes. It could, however, signal how it is thinking about its plans going forward.

“A lot is going to depend on what happens next,” Johnson said. “If they announce that they will be raising interest rates, it will be very interesting to watch how that would impact the COLA.”"

MY COMMENT

This could be a BANNER year for anyone that is collecting Social Security. There is a GOOD CHANCE......that we will see a cost of living increase in Social Security benefits.....in the 5-7% range. If this....."transitory"....inflation can continue and actually worsen for the next four months the increase WILL be in that range.

For ANYONE.....regardless of income or wealth.....this would be a WELCOME increase.....as the article says....the largest increase since 2009. IF.....we can get this increase up to 6% or above....it would be the LARGEST increase to Social Security benefits since.......1983.

This increase.....along with future increases.....will POWER social security benefits significantly higher when you consider ihe impact of compounding of the annual cost of living increases each year.

Since I started on Social Security in about 2015......( I think, I cant remember)......the annual cost of living increases have been pretty dismal....less than 2% every year except one. Benefits really jump when you can string together a few years of 4% or more increases.

SORRY.....young people....as a greedy old baby boomer......I WANT your money......so keep paying those monthly Social Security and Medicare "contributions". AND.....dont even get me started on the fact that the GOVERNMENT continues to........STEAL.......the money from the trust fund EVERY YEAR and replace it with worthless IOU Treasuries.

 

Sorry....no more time to post anything till this evening.....I have a date with a studio session today......and need to pack the car and take off in about 10 minutes.

YES......I lied above....my income does also include my "musician" income......and....yes....I do declare and pay taxes on that money even though much of it is CASH. I ALSO pay self employment.....Social Security and Medicare premiums on those earnings.....BUMMER.

Someone buy something....after hours......and pump up those futures for the open tomorrow.