|
Replies: 26
| visibility 315
|
Oculus Spirit [98351]
TigerPulse: 100%
Posts: 65245
Joined: 7/13/02
|
Interesting perspective.
1
May 20, 2024, 12:45 PM
|
|
Relativity escapes us frequently. It's a hard thing to notice, but everything is relative, always.
Since the pandemic, we have had 21% CUMULATIVE inflation in the US. Our dollars cumulatively buy 21% LESS today than in 2020. Everyone was elated when their houses went up 30% or something north of 21%. Everyone was likewise horrified when food climbed north of 21%. And yes, everyone is elated that the stock market is up to 40,000 now. BUT, if you take 21% off the stock value (cash) due to inflation, the inflation adjusted market sits at 33K right now.
Anyway, just interesting human nature and all. We often see what's in front of us without the context of what was behind us, especially when what's in front of us is bright and shiny. My house sits right at double what it was worth in 2020. But if I sell it, pay off half the mortgage remaining, and turn around and rebuy it, and sink all the equity we have into a down payment, and take out a new mortgage on the rest, we're paying about 30% more for a reset 30 year mortgage, as we would be financing right around the original purchase price.
https://www.forbes.com/sites/johntobey/2024/05/19/avoid-this-stock-market-excitement/?sh=65ba8a104890
|
|
|
|
 |
All-In [28213]
TigerPulse: 100%
Posts: 16185
Joined: 1/26/22
|
Inflation doesn't exist.***
1
May 20, 2024, 12:47 PM
|
|
|
|
|
|
|
|
Oculus Spirit [98351]
TigerPulse: 100%
Posts: 65245
Joined: 7/13/02
|
I'll remember that next grocery run.***
1
May 20, 2024, 12:55 PM
|
|
|
|
|
|
|
|
All-In [28213]
TigerPulse: 100%
Posts: 16185
Joined: 1/26/22
|
You won't.***
May 20, 2024, 2:00 PM
|
|
|
|
|
|
|
|
All-In [32277]
TigerPulse: 100%
Posts: 10489
Joined: 1/28/15
|
I dont understand this at all, so Im going to blame a politician I dont like***
2
May 20, 2024, 12:59 PM
|
|
|
|
|
|
|
|
Lot o points [157112]
TigerPulse: 100%
Posts: 66272
Joined: 5/6/13
|
You sound a little uppity here.
4
May 20, 2024, 1:02 PM
|
|
you should hang out with some really wealthy people to get some humility.
|
|
|
|
|
|
All-In [32277]
TigerPulse: 100%
Posts: 10489
Joined: 1/28/15
|
Are you saying my 5 MILLION DOLLARS IN MY ACCOUNT is because of inflation?***
3
May 20, 2024, 1:02 PM
|
|
|
|
|
|
|
|
Lot o points [157112]
TigerPulse: 100%
Posts: 66272
Joined: 5/6/13
|
Are you challenging me, sir?
2
May 20, 2024, 1:05 PM
|
|
Because I'll have you know my son just landed an Uber-exclusive summer internship in the finance department of a medium sized corporation paying a wage north of $20/hour. I don't want to vicariously kid-shame you, but I will if pushed.
|
|
|
|
|
|
Hall of Famer [24617]
TigerPulse: 100%
Posts: 14064
Joined: 7/3/01
|
Re: Are you challenging me, sir?
2
May 20, 2024, 1:13 PM
|
|
Working the snack hut at Camp Greenville?
Seriously, the $20 is not a bad gig.
|
|
|
|
|
|
All-In [42755]
TigerPulse: 100%
Posts: 38731
Joined: 11/30/98
|
Don't know about you plebes, but when I was throwing back...
3
May 20, 2024, 1:47 PM
[ in reply to Are you challenging me, sir? ] |
|
Tequila shots (Don Julio 1942... it was rather swill but hey, open bar) with the CEO of UntuckIt Shirts, the Duke of Edinburgh, and Steve Buscemi at a recent wedding reception at Hall's ChopHouse, we admired how successful we are but then I had to point out to the Duke that he didn't even own a neighborhood garage bar, so what has he really accomplished?
But he was like, bruh--not like, frat bruh, but just regular bruh--who has time to sit at a garage bar let alone build one with all fine Scottish b!tches who are after my cash. That's real success, bruh. And I had to concede it to him.
Really, that kind of gave me an awakening and made me realize that he's still finding new paths of success at his age--with some hot ### lassies in tow.
|
|
|
|
|
|
Orange Blooded [4764]
TigerPulse: 100%
Posts: 2214
Joined: 5/21/05
|
To be fair, you can't even get a babysitter round here for less than $20/hr***
May 20, 2024, 1:52 PM
[ in reply to Are you challenging me, sir? ] |
|
|
|
|
|
|
|
Lot o points [157112]
TigerPulse: 100%
Posts: 66272
Joined: 5/6/13
|
Youre in finance.
1
May 20, 2024, 1:54 PM
|
|
Is this your way of telling me you’re a poor and I should tell my son to change his major?
|
|
|
|
|
|
Orange Blooded [4764]
TigerPulse: 100%
Posts: 2214
Joined: 5/21/05
|
I majored in finance because my Dad told me to and when I went to orientation
4
May 20, 2024, 2:10 PM
|
|
at CU they told me the major is 80% male and I was sold. He also threatened to send me back to an in state Florida school if I changed my major to something dumb and I was having too much fun so I stuck it out.
I also hated accounting but if you have a strong background in that with finance you are never going to go hungry, and as my luck would have it the first job I took was in accounting and not finance and the rest is history.
When you say finance that's a pretty broad major with lots of different paths... but likely the first few years he will be overworked and under paid but power through and then you can sit in an ivory tower waving to the peasants like KMS.
|
|
|
|
|
|
Lot o points [163848]
TigerPulse: 100%
Posts: 32108
Joined: 1/17/07
|
I was one of the first classes in FM
1
May 20, 2024, 2:59 PM
|
|
we had three (3) Finance classes. LOL.
|
|
|
|
|
|
All-In [28213]
TigerPulse: 100%
Posts: 16185
Joined: 1/26/22
|
She can probably afford an apostrophe.***
2
May 20, 2024, 2:22 PM
[ in reply to Youre in finance. ] |
|
|
|
|
|
|
|
Lot o points [157112]
TigerPulse: 100%
Posts: 66272
Joined: 5/6/13
|
Im protesting this sites blatant anti-iOS bias.
2
May 20, 2024, 2:49 PM
|
|
Why should I have to hold down an apostrophe or quotation marks key for 3 seconds to get one this site can recognize in the subject line when any drooling android user can do it with a single press?
|
|
|
|
|
|
All-In [28213]
TigerPulse: 100%
Posts: 16185
Joined: 1/26/22
|
Honor?***
May 20, 2024, 3:06 PM
|
|
|
|
|
|
|
|
CU Medallion [67094]
TigerPulse: 100%
Posts: 24997
Joined: 6/12/14
|
|
|
|
|
|
Orange Blooded [4764]
TigerPulse: 100%
Posts: 2214
Joined: 5/21/05
|
But didn't you have like 30 kids?***
2
May 21, 2024, 10:48 AM
|
|
|
|
|
|
|
|
All-In [44337]
TigerPulse: 100%
Posts: 10829
Joined: 3/1/18
|
Why is 'real' DJIA value based on 2020? There was inflation before that, too.***
3
May 20, 2024, 1:06 PM
|
|
|
|
|
|
|
|
Heisman Winner [106828]
TigerPulse: 100%
Posts: 65674
Joined: 12/2/02
|
Something about fitting a narrative
1
May 20, 2024, 1:15 PM
|
|
probably
|
|
|
|
|
|
Oculus Spirit [98351]
TigerPulse: 100%
Posts: 65245
Joined: 7/13/02
|
Funny you should mention that.
May 20, 2024, 2:53 PM
[ in reply to Why is 'real' DJIA value based on 2020? There was inflation before that, too.*** ] |
|
The article I posted starts in 2020, just highlighting current inflation. You can start your calculations anywhere in time. The internet seems devoid of a complete chart over time though, oddly.
It's very much like my parents house I grew up in. They bought the house I grew up in in 1982, and sold it for double what they paid in 2016. They thought they had doubled their investment. But if you pull out their mortgage docs, they paid about $10K less (over that time period) than they sold it for, over the course of their mortgage(s). So if you buy at $160, sell at $335, 34 years later, and pay $325 over 30 years, how much did you "make" on your "investment"?
|
|
|
|
|
|
Oculus Spirit [77152]
TigerPulse: 100%
Posts: 1729
Joined: 10/24/23
|
The company I work for has done 5% raises last few years
1
May 20, 2024, 1:07 PM
|
|
If your sales numbers were up 12%! So some people got them and others not. It’s crazy that we can have 21% inflation w little raises unless you hit a goal.
Also inflation is why all there companies are reporting their best earnings! Bc they jacked up the prices more than inflation which then causes more inflation.
|
|
|
|
|
|
Hall of Famer [24617]
TigerPulse: 100%
Posts: 14064
Joined: 7/3/01
|
Re: Interesting perspective.
May 20, 2024, 1:09 PM
|
|
I suppose that is why equities are considered to be a decent inflation hedge. Per your chart, I guess one can say, "At least it is doing that."
Count me in as hoping we are seeing the end of it, but 21% to date doesn't feel like the end to a layman like me. The money supply went up so much between '20 and '22 that it seems like another 10% or so is in the cards over the next couple of years. Or the 21% is an under reporting (surely not).
"Every period of inflation has been preceded by an increase in the money supply, and every increase in money supply has been followed by a period of inflation." -- Milton Friedman
|
|
|
|
|
|
Heisman Winner [106828]
TigerPulse: 100%
Posts: 65674
Joined: 12/2/02
|
My brother in Christ, humble yourself***
May 20, 2024, 1:14 PM
|
|
|
|
|
|
|
|
Hall of Famer [22482]
TigerPulse: 100%
Posts: 8881
Joined: 9/11/11
|
Except Costco chicken
2
May 20, 2024, 1:59 PM
|
|
2.99 / lb since COVID
Splain that market man
|
|
|
|
|
|
Oculus Spirit [98351]
TigerPulse: 100%
Posts: 65245
Joined: 7/13/02
|
Losing $$$ to get people in the store. Or that's what they said.***
May 20, 2024, 2:19 PM
|
|
|
|
|
|
|
|
Replies: 26
| visibility 315
|
|
|
50
