The Long Term Investor

gtrudeau88

I know I am late to the party and you are not going to cannibalize your IRA.

My comment......NEVER touch your retirement money. I mentioned in a long winded post the other day.....that as a business owner it was very important to me to secure my retirement. Once I could see that was done I had much more freedom with money. Of course, I still contributed to my Keogh retirement account.

So for anyone thinking of taking money out of their retirement account for anything other than retirement I have one question. Is your retirement set? Is what you will need in retirement guaranteed? If not.....what are you going to retire on and live on when you are old?

Well....three questions.

 

Another day in the neighborhood......happy Friday.

HERE is some of the ACTUAL news that might mean something over the coming months. I note that on many of the sites I scan.....once again.....GameStop is the primary subject of articles. NO COMMENT.

U.S. consumer spending rebounds; inflation muted

https://www.reuters.com/article/us-...ending-rebounds-inflation-muted-idUSKBN2AQ24B

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

"WASHINGTON (Reuters) - U.S. consumer spending increased by the most in seven months in January as the government doled out more pandemic relief money to low-income households and new COVID-19 infections dropped, setting up the economy for faster growth in the first quarter.

Despite the strong rebound in consumer spending reported by the Commerce Department on Friday, price pressures were muted. Inflation is being closely watched amid concerns from some quarters that President Joe Biden’s proposed $1.9 trillion COVID-19 recovery package could cause the economy to overheat.

The plan, being considered by the U.S. Congress, would be on top of a rescue package worth nearly $900 billion approved by the government in late December. Federal Reserve Chair Jerome Powell has played down the inflation fears, citing three decades of lower and stable prices.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 2.4% last month. That was the biggest gain since last June and ended two-straight monthly declines. Personal income shot up 10%, the largest increase since last April, after rising 0.6% in December.

Consumers bought motor vehicles, recreation goods, food and beverages. They also boosted spending on services such as hotel accommodations and restaurants, as well as doctor visits.

Economists polled by Reuters had forecast consumer spending rebounding 2.5% in January and income accelerating 9.5%.

When adjusted for inflation, consumer spending increased 2% last month after decreasing 0.8% in December.

Further gains in consumer spending are likely, though winter storms, which wreaked havoc in Texas and other parts of the densely populated South this month could slow momentum. Daily coronavirus cases and hospitalizations have dropped to levels last seen before the Thanksgiving and Christmas holidays, while the pace of vaccination is picking up.

The recent stimulus package included $600 checks to mostly low-income and some middle-income Americans. The package also extended a government-funded weekly unemployment subsidy as well as benefits for millions of people who do not qualify for state unemployment programs as well as those who have exhausted their six months of eligibility. These benefits expire in mid-March.

The Biden administration’s plan, if approved, will send additional $1,400 checks to qualified households and extend the government safety net for the unemployed.

Economists last week boosted their first-quarter GDP growth estimates to as high as a 6% annualized rate from as low as a 2.3% pace following January’s blowout retail sales data and indications that the White House’s massive stimulus package could be fully approved. Growth estimates could be raised even higher after the consumer spending report.

MY COMMENT

AS USUAL......more good news for the future of the general economy over the next 6-24 months. Sooner or later ALL this pent up good news....along with....the great earnings reports for the 4th quarter WILL start to show up in the stock and fund markets.

 

Let me respond to something I have seen on here a couple of times now. But first some disclaimers.......this is not argument with rustic1. EVERYONE has to invest in the way that is right for them and works for them. I am ALSO....NOT....advocating anything for anyone else......how I invest is how...."I"...invest.....how or what anyone else does is up to them.

SO .....MY VIEW.......for those that are fully invested all the time.....and a market drop occurs...."ARE YOU TRAPPED".......is your money....."TRAPPED"?

My view......of course......NO.....a resounding no.

My money is fully invested all the time and has been for the past 45+years as MY investing style. Why would I want money siting in cash as NONPRODUCTIVE....earning nothing money? MOST of my stocks and funds have such a low BASIS that ......it is HIGHLY UNLIKELY that I am going to see a chance to buy any of them below my actual........average........ basis/cost of what I already own. Even my recent buy...TESLA...has a 200% gain and is ALL profit.

AND.......there is NOTHING that I am interested in buying.

AND.....if some screaming deal comes up.......and I wanted to buy it.......I would simply sell a portion of something and invest in it.

Of course.....since I am long term......if I did sell part of something to raise cash for some screaming deal of the century.....I would pay taxes as long term capital gains.....at lower rates than those that are basically short to medium term traders and paying taxes at FULL INCOME TAX rates on their short term gains.

MY COMMENT

I do.....also.....want to mention....jsut because I post some article does NOT mean I agree with it. That is why I say........(BOLD is my opinion OR what I consider important content). Something might be important content even though I do not agree with it as........."my opinion".

I learned a long ago that it is.....generally.....a waste of time to argue "opinion" on message boards. We all have ours and it is highly unlikely we are going to get anyone else to suddenly change theirs. BUT.....the nice thing about posting on boards.......it gives.........any readers.......a chance to see many different opinions and views and take from each whatever they want.

SUCCESS takes many forms.....as we see on this board.........KUDOS TO US ALL.

 

LOL.......rustic1......I did not see your post above as I was busy typing. We are in perfect sync today.