Money & Economics

[bigredfish]

Purely me spitballing, not financial advice

But if the .Gov intervenes in the markets this morning the way they did yesterday (pure speculation on my part) to prop up your 401K, treat it as a temporary gift and at least take advantage of it and move your savings into a Money Market fund. Most 401K's have an option for a MM. It may be called something else but it will be a fixed income fund that is clearly different than the others.
If you're not sure call your plan manager and tell them you want your money in a Money Market Fixed income fund.

3.5%-4% is a whole lot better than negative (-10%) or worse

 

[bigredfish]

 

[bigredfish]

 

[Ssayer]

Explain it to me like you would to a 6 year old. Where exactly does this money come from that the Fed is injecting into the market and what exactly backs up said money?

 

[johnfitz]

Explain it to me like you would to a 6 year old. Where exactly does this money come from that the Fed is injecting into the market and what exactly backs up said money?

Yea, me too... and what are they buying with the money?

 

[bigredfish]

They print it.

Thus adds liquidity that the big banks and others can borrow relatively cheap. They then buy up the market, raising prices.

(They can then short the market and make more $ on the way down)

You and I are just along for the ride.

Printing money also by nature adds to inflation- ie your dollar was just devalued, again.

 

[bigredfish]

1000 pts down

 

[bigredfish]

I left some Oil (#XLE) and Gold (#GLD) baking last night as I made some on the slow rise yesterday.

Big mistake. Got out of GLD at $475 in pre-market (fell from 490 close yesterday)
ONLY lost $500 and bailed. Offset $200 by a small gain in Oil.

Would have been another $500-$1000 down as of just a bit ago

 

[bigredfish]

While the market was being manipulated UP yesterday, those same big boys were buying Puts, betting on it going down. In large numbers

They made a killing this morning

 

[bigredfish]

DOW now down 1200, Gold passing down through $5000

 

[bigredfish]

Gold $GLD on track for its 3rd largest loss over the last decade

 

[bigredfish]

With a $T

 

[bigredfish]

Bizarre..

 

[bigredfish]

 

[bigredfish]

And here’s the Reverse pump!
Cut loss in half in an hour ..

BTFD and let Jesus take the wheel?

Or wait until the nukes go up and then buy back in?

Hmmmm decisions decisions …

 

[bigredfish]

Yep.
Watch for price controls on oil or gasoline coming soon ..

 

[bigredfish]

Explain it to me like you would to a 6 year old. Where exactly does this money come from that the Fed is injecting into the market and what exactly backs up said money?

See what $9 Billion in free money can do?

 

[bigredfish]

 

[Arjun]

 

[bigredfish]

Markets are like a bad horror movie lately … sure feels like 2008