I don't think it's possible to put a percentage on how many would default. Suffice it to say a lot of folks would default if economic conditions worsen.
$1000 a month for 5 years is $60K. 17% of loans meet that criteria. Sounds reasonable.
Yes, of course. There have been numerous articles about car buying.
It would be a stretch. In an economic crash, a lot of people who lose jobs would sell the $1000/month car. That would flood the market with used cars and depress prices - making it hard to sell expensive used cars.
Would need to see an income overlay to determine if people are indeed buying above their means.
The original scenario didn't include an economic downtown, let alone a crash.
It’s the American way…no different than nations debt level. Monkey see monkeys do
Buying above one's means is a subjective phrase, right? It doesn't mean they're defaulting on loans or leases, although that would indeed be an obvious indicator. It means they're incurring too much credit risk to have something they can't afford.
But do we have any numbers which back that up? The link you posted provided half the equation.
I'm not defending Dave's suggested percentage.
Without knowing the incomes as well other expenses of those taking on these loans we are just making assumptions.
What if the car is so nice that cocaine carrying hookers just jump in as you drive by?
Well that's okay then. Just so long as they don't scratch up the carbon fiber with their nails when jumping in.
Thanks for the heads up. I have candidate interviews until 3pm. Afterwards, I will check it out!
Nice! You showed that making money is about patience and having a strong stomach. I have to imagine that NVDA will settle down a bit from such a large rally. When it does, it's the perfect buy and hold candidate.
Spending above one's means is pretty much the American standard these days. Crazy behavior.
If you really liked the stock, you could have averaged down at certain levels. I did that with a bunch of tech names which I bought down 20-30% or more from their highs and it was still way early for them. I slowly averaged my positions down at certain levels using charts and accumulated. I'm actually kind of surprised they've come back this hard this quickly and I've trimmed some of the highest price shares off now. But nonetheless, even it hadn't come back so hard so fast, I think they would have in good time.
I brought my NVDA on 5/18/2023 $311 sold it this morning $389 for a $78 profit for a week work. It’s all in the timing. Buy low sell high. I have buy limit orders for NVDA. Did the same with UNH sold it after I believe two weeks.
I fully respect your position and strategy. I, myself, don’t feel confident in market timing. If I like the company in a particular industry, I’ll buy and hold until I feel something substantive has changed. I bought Amgen and Microsoft decades ago after their IPOs. I have take some profits over the years but didn’t sell my full positions, luckily. There have been ups and downs but my cost basis for each is under $20 per share. I’d kick myself if I fully liquidated trying to time the market. But good for you and it sounds like your plan is working out well.
Either method works but since I am retired and I don’t mind holding cash at any time, if I see an opportunity I put the cash to work. it’s in my personality to trade.
For people like us that are always fully invested or mostly fully invested, this is the best strategy. Buy quality, hold, and add to positions. I have owned and added to my key funds since 2005.
As mentioned above, I'm having fun trading around those leveraged ETFs, but not with such short durations (unless I quickly get stopped out). Still not an individual stock guy. I will only dabble with those.
I’m retired to, but just don’t trade much. As Sly sang, “different strokes for different folks and so on and so on and scooby dooby.” Best of luck to both of us! There are different ways! There is no one “right” method!
I do have some long term holding like JNJ and BMY which I brought at close to their 52 week low. At some point, I’m confident there will recover to at least 10% but I’m in no rush. I also moved my mom inheritance to me to a brokerage acct and brought some VZ and DIS thinking they were good long term investments. Well, looks like I’m going to have to hold them long term.
I bet DIS will be fine pretty soon. Iger has some digging out to do, but the company and brand are solid. As for VZ.....always thought it was a textbook value trap.
That guy will look like a genius when Skynet becomes self aware.'Price bubble' in A.I. stocks will wreck rally, economist David Rosenberg predicts
Long-time bear David Rosenberg warns the artificial intelligence boom could collapse like late 1990s dot-com stocks.www.cnbc.com
