Investment question/advice

And you want that investment info free? Lol...j/k. I'd like to hear what someone comes up with, too.

 

We’ll likely have a recession, even if Trump wins. It’s due. However, that means the Fed will get dovish and stocks will likely rise in the long term. It’s very difficult to time a correction and subsequent rally. Over the long haul, you should come out ahead either way. You just have to be in it for the long haul.

 

They might try to cause one, but I doubt Trump's policies are conducive to raising rates and if those rates instead fall... win-win. Confidence in an economy is a real thing.

 

… raising rates is a sign of a strong healthy economy.

 

Half the experts might agree...

 

Yes, like I said, Confidence in our economy is a real thing...


Consumer confidence index

A consumer confidence index is an economic indicator published by various organizations in several countries. In simple terms, increased consumer confidence indicates economic growth in which consumers are spending money, indicating higher consumption A consumer confidence index is an economic indicator published by various organizations in several countries. In simple terms, increased consumer confidence indicates economic growth in which consumers are spending money, indicating higher consumption

 

Can you give me the name of any expert that says the Fed should raise rates while the economy is going down the crapper?

 

I've never been an annuity fan. Ties up money and they are generally much higher in fees that mutual funds or ETFs. There are plenty of ways to hedge using ETFs (international, small cap, bond....).

Just my two cents.

 

That's the thing... some might think we are in the crapper already, and that's a reason to lower rates.

 

Just a name, please…

 

Who is the Fed Chairmen? If the rates go down, then you have your answer.

 

Ask them to show you the estimated return when the annuity fee is included. Annuities typically have really high fees

 

I usually just ride the ups and downs which net up. Over the past decade, an annual average of only 27.1% of actively managed funds benchmarked to the S&P 500 beat it. I cringed in 2020 but it worked out to hold. My investment advisor who is right maybe half the time said shit will be volatile until the election and no matter who wins we will see growth in 2025. They were right about 2020-2022 but wrong about 2023 when they expected a recession.

 

Okay, I don’t want to hi jack this thread any more…. So this is my last reply, but if the fed cuts rates, it’s because they think the economy is weakening … not getting stronger… your understanding is completely backwards. If hypothetical Trump is elected and economy turns blazing hot, then the Fed would normally raise rates to slow potential inflation and ease the job market squeeze…. That’s how it always works.

 

I agree with Navy, not a fan of annuities. The non compounding interest is weird to me. At a minimum you need to read the fine print and do a thorough background check on the company selling them. I much prefer dividend ETFs, I have a recommendation post in the too hot investment thread. Post #419. If you don’t like the volatility of stocks then I would recommend a money market fund like SWVXX, CDs or some low risk bonds. At least you have control and access to your money with those investments and your money will compound over time.

 

Funny, that's actually my money market fund.

 

It is.
But, even though I was always a R before trump, the markets did substantially better under clinton and Obama then any R presidents since I have been investing.

 

Good info but I have annuities for a couple reasons. One is that I make too much for a Roth IRA and I am maxing out my 401K and employer match. So it was either the annuity or go into something where I have to actively manage a brokerage account which I don't have the time nor skill set to do.

Unless you have a better idea. I'm open. Tying up the money for longer doesn't bother me. I think it's 6 years.